A FLUCTUATING dollar, erratic export demand and unexpected seasonal conditions led to an unpredictable financial year for beef cattle producers.

In 2009-10, national cattle prices slipped 2.5 per cent on average but producers sent more cattle to market.

Meat and Livestock Australia economist Tim McRae said the past 12 months were characterised by a volatile Australian dollar and sluggish export demand.

"Exports to our two major markets dropped, as did returns in Australian terms due to the dollar," Mr McRae said.

Total export volumes of boxed beef and veal were back 7 per cent to 898,960 tonnes, he said. Exports to the US dropped 25 per cent to 210,500 tonnes, while shipments to Japan were down 4 per cent.

The Australian dollar averaged US88.2 cents during 2009-10, forcing prices for heavy export categories down almost 4 per cent.

Younger cattle fared better with the Eastern States Young Cattle Indicator down just 0.6 per cent, due to many cattle producers restocking in the last three months.

"Of all the factors out there - export markets recovering from recession, an Australian dollar some 18 per cent higher than the previous year - for average prices to be only 2 per cent down was certainly encouraging," Mr McRae said.

Improved consumer confidence and strong domestic demand during the past 12 months should also give producers hope, he said.

"The domestic market has had a pretty good year and we expect total (domestic) consumption to be up for 2009-10," Mr McRae said.

"Although waning a little now, throughout the past year Australians had a more positive outlook and this was reflected in their purchases."

Improved seasonal conditions and decreased export demand also affected the feedlot sector last financial year, however numbers on feed remained similar to the previous year, Australian Lot Feeders Association president Jim Cudmore said.

Mr Cudmore described last financial year as "a period of consolidation for the feedlot sector".

"We've seen a sporadic increase in demand, largely built around the Australian dollar and export markets," he said.