Between 1968 and 1971 beef cattle numbers in Australia expanded by 38 per cent compared with an increase in production of about 14 per cent. This paper presents projections to 1976 for beef and veal production. The projections indicate an expansion of 70 per cent in beef production by 1976 and are not sensitive to assumptions about the future rate of increase in cattle numbers. Supplies available for export will approximately double unless there is an increase in domestic consumption. It is concluded that the increased supplies will result in considerable downward pressure on beef prices unless export outlets expand more rapidly.