Thursday, 22 October 2015 14:58

Aussie beef production soaring

Written by 
 MLA manager of market information Ben Thomas. MLA manager of market information Ben Thomas.

The Australian cattle industry is bracing for a near record annual cattle slaughter by year's end.

Tight Australian beef supplies, the weaker Australian dollar and strong export demand have put that country's cattle producers in a sweet spot.

Meat & Livestock Australia's (MLA), in its latest cattle industry projections quarterly update, say producers with cattle to sell should have confidence in the market over the long term.

MLA manager of market information, Ben Thomas, says the annual cattle slaughter by year's end is estimated to reach a record high.
"This will be the third consecutive year of cattle slaughter exceeding eight million head, something never seen before. As a result, beef production is estimated to reach 2.46 million tonnes cwt – the second highest volume ever," says Thomas.

The female slaughter rate so far this year is 28% above the five year average, which will ultimately lead to fewer calves and lower beef production. Yet over the next five years Australia will still continue to produce at least 2 million tonnes of beef and veal annually.
Thomas says another important factor for the industry is the expectation of a continuing weaker A$ bolstering the demand for Australian beef.
"Cattle prices are expected to remain buoyant over the longer term, even with the usual seasonal decline expected in the final months of 2015.
"Australian beef and veal exports after the first nine months of 2015 are 4% ahead of the same time last year (a record), but in the fourth quarter we will see a continuous slowdown in monthly export volumes.
"The value of the dollar against the US currency will help maintain the value of exports for exporters and our competitive position globally."
Thomas foresees this as important for exports, with most of Australia's major competitors expecting higher production, including Brazil and India, although the US is expected to dip between now and 2017.
"This will continue to pressure our market share in regions where there is common access, yet Australian beef's high food safety profile will support its position in the market.
"The total turn-off rate illustrates how extraordinary the past couple of years have been," Thomas says.
With processors and feedlots the main buyers dur ing the third quarter, Thomas says this trend would continue until pasture and water conditions improved, giving re-stockers confidence in the market.
"Australian producers with cattle to sell should have confidence in longer term prices, given the value of our shrinking pool of cattle and high demand for our product here and overseas."

More like this

Big opportunities in 'wellness' for red meat

Crown research institute AgResearch has partnered with Meat & Livestock Australia (MLA) to survey attitudes among red meat eaters in Australia and the United States towards physical and mental wellness related to consumption of meat.

Rural professionals need to adapt quickly

Alternative proteins, meat-based snacks, insects, new types of packaging, eating on-the-go, 3D printing of food: change is coming fast and rural professionals need to get with it, says Meat & Livestock Australia’s Christine Pitt.

Aussie lamb prices looking brighter

Lamb producers in Australia appear to be faring much better than their New Zealand counterparts, with falling numbers and growing demand hiking prices.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

A different shade of blue for Norwood

Norwood and ARGO Tractors, the Italian manufacturer of Landini and McCormick tractors, have announced an agreement that gives Norwood exclusive…

Kubota tests diesel engines

Kubota last month used the UK LAMMA Show to test the water with its new 200hp, four-cylinder 09-series diesel engines.

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter