Prospects good for sheep and cattle in 2008

Meat and Livestock Australia expects the cattle and lamb industries to bounce back this year, following several difficult years of drought.

Official projections from the industry's peak body show both cattle and sheep numbers will rise by up to three per cent, though producers will try and hold on to more stock.

MLA's chief market analyst, Peter Weeks, says prices will rise for most cattle categories, while sheep prices could set new records.

"The rain is the key factor", he says.