The industry's forward projections released by Meat and Livestock Australia yesterday attribute the production climb to the run of good seasons that have favoured the grazing sector since 2010.

Continued strong demand from an increasingly diverse range of global markets is also contributing to the upbeat forecast.

MLA chief economist Tim McRae said the growth in Australian beef production had been helped by the ability of producers with access to high quality pasture to turn off cattle with heavier carcase weights.

He said while cattle numbers would increase, supply would remain relatively tight compared with the drought years of the past decade, when cash-strapped producers liquidated their herds.

About the only sector of the industry to feel some level of pain will be lotfeeders, as producers flush with pasture growth compete strongly for young cattle for finishing, and limit female turnoff to assist with herd rebuilding.

However, with live cattle exports tipped to decrease 16 per cent this year amid falling prospects with Indonesia, more cattle from northern Australia may find their way south for processing, easing the expected tight supplies.

On the export front, global demand for beef is expected to be sustained, if not strengthen - particularly in Asia, South America and the Middle East - while at the same time global beef prices are tracking at historically high levels.

Mr McRae said such factors would help to dampen the impact of the high Australian dollar.

"Total beef exports are predicted to increase, driven by expansion into Russia, the Middle East and most southern Asian markets," he said.

"Traditional export markets will continue to be challenging, with the exception of the US market which is forecast to improve in 2012, as high prices attract additional product, reversing almost a decade of falling Australian shipments."