ABARE executive director, Phillip Glyde, says productivity trends have been difficult to determine in recent years because of high volatility.

"These movements are likely to reflect destocking and restocking by farmers as they respond to recurrent droughts," Mr Glyde said on releasing the Productivity in the beef cattle and slaughter lamb industries report.

The report presents ABARE's latest estimates of long-term productivity growth for beef cattle and slaughter lamb producers, for the period 1977-78 to 2006-07.

In the beef cattle industry, long-term productivity growth averaged 1.09pc a year between 1977-78 and 2006-07.

Slaughter lamb industry productivity growth was only marginally positive at 0.22pc a year on average between 1988-89 and 2006-07.

"High international demand and the expansion of live export trade have driven beef cattle producers to expand land holdings and invest in improved genetics, handling facilities and management over the past decade, allowing them to improve productivity and incomes," Mr Glyde said.

"Slaughter lamb producers have also been driven by high world lamb prices and have implemented strategies including the use of improved pastures and supplementary feeding to improve ewe fertility.

"There has also been a focus on finishing lambs to higher weights and quality.

"Such improvements in management practices have driven productivity growth within the industry, however the outcome has been dampened by poor seasonal conditions."

According to the report, broadacre livestock industries are likely to require larger productivity growth to sustain profits and export competitiveness into the future.