Rabbit funds fury

Embattled farmers are now threatening to withdraw from the fight against the latest plague of rabbits sweeping Victoria's northwest according to a report in The Weekly Times.

Mallee Landcare Group, the state's biggest in terms of area, failed to secure funding for a co-ordinator in a recent bailout offering for 60 other groups from the State Government.

Group president Faye Vallance warned the Mallee's volunteer efforts in ripping and fumigation on private land was at risk. "Rabbit numbers are getting up fast around here, now that calicivirus is losing its sting," Vallance said.

With the Mallee group's annual meeting to be held this week, Vallance does not believe members will decide to continue going it alone. The Victorian Government says the funding was only for facilitators across a number of "consortium" groups.

ID is key for cattle future

NEW live export protocols tracing Australian cattle along the supply chain should prevent any future trade shutdowns new Cattle Council of Australia president Andrew Ogilvie has told The Weekly Times.

"I think, and certainly hope, the traceability and accreditation (of abattoirs) will prevent anything like that happening again," he said. The SA cattle producer was elected to the peak lobby group late last year, after the live export ban to Indonesia.

Ogilvie, whose family's outfit is one of the 50 largest beef businesses in Australia, is now charged with guiding CCA through the tumultuous jobs of rebuilding the live export industry and restructuring a tired lobby group.

Last week he left for the Middle East, another of Australia's live cattle markets, with Federal Agriculture Minister Joe Ludwig to assess the traceability programs. CCA is also planning a major restructure to improve its representation and a paper proposing several options was due to be released late last week.

Beefed up Aussie exports

AUSTRALIA's beef industry will export 975,000 tonnes this year, setting a new record. However, The Weekly Times says with the US one of Australia's largest customers - and competitors - for beef, the ride could be a rocky road this year.

The paper says that Meat and Livestock Australia released its cattle projections last week and chief economist Tim McRae said a highlight was increased beef going to the US.

"When we did our early projections, we didn't have such a big jump factored in, but boosted sales late last year gave us confidence the US market was going to grow substantially," McRae said.

"And while we're coming off a low base, the predicted 28 per cent increase is still good." MLA estimated the US would import 215,000 tonnes of Australian beef this year, dominated by manufacturing beef sales.

US muscles in on beef exports

US BEEF exports are muscling in on some of Australia's key markets says The Weekly Times. It is part of the reason why US beef exports are predicted to break records when final calculations for 2011 are completed.

Figures collected by the United States Department of Agriculture show US beef exports are on track to pass $4.8 billion last year. And while Canada and Mexico are the biggest customers for US beef, it is also making inroads into Japan and Korea.

From January to November last year, the US exported 129,552 tonnes of beef to Japan, a lift of 33 per cent compared with the same period a year earlier. There were also increased sales to Korea, up 34 pc to 123,456 tonnes for the first 11 months.

Analysts said the weak US dollar helped make the country's beef more competitive.

MLA chief economist Tim McRae said Australian producers "should be worried" about the increasing US share in traditional Australian markets.

Secrecy on BJD plan

VICTORIA's key livestock organisation has been kept in the dark about new planned rules for Bovine Johne's Disease. The Weekly Times says a draft set of rules from Animal Health Australia puts Victoria and Tasmania in the highest-risk regions.

Dairying areas in south-east SA, the Riverina and other areas of NSW are assessed as lower risk. The Weekly Times has seen the proposed framework for the future management of BJD in Australia but the VFF was unaware the document existed.

VFF livestock president Chris Nixon said he was angry about the lack of consultation and the new classifications. "If they (AHA) don't want the plan accepted, they've gone the right way about it," he said.

Nixon said the draft plan was unfair to Victorian farmers. "Diseases don't respect lines on maps or state borders," he said. Nixon said it did not seem fair that beef farmers in dairying areas such as south-east South Australia, should be considered differently to beef farmers near Warrnambool, another key dairying region.

Ludwig to visit Middle East

AUSTRALIA'S agriculture minister Senator Joe Ludwig is visiting the Middle East this week to discuss international standards to slaughter animals according to a report in The Weekly Times.

Ludwig is leading a delegation of livestock industry members, including Australia Livestock Exporters' Council, Sheepmeat Council of Australia, Livecorp and the Cattle Council of Australia, to Saudi Arabia, Kuwait, Bahrain and Qatar this week.

"An important step in that future is working with our exporters to ensure acceptable animal welfare outcomes in the trade," Ludwig said. "Middle Eastern markets are important for Australian livestock exports. The new supply chain assurance framework will apply to a number of these markets from the end of February.

"This official visit is an important way to communicate our reforms with foreign government ministers and key Middle Eastern importers, thereby assisting Australian exporters as they establish their supply assurance systems."

Beef, veal production to rise: MLA

According to a report in The Weekly Times Australian beef and veal production is forecast to increase this year to a record 2.197 million tonnes cwt, Meat and Livestock Australia says.

MLA chief economist Tim McRae said beef and veal production was forecast to increase by 2.2 per cent due to heavier than average carcase weights. "A major factor assisting the growth in Australian beef production has been the heavier carcase weights on the back of good seasons," he said.

While the cattle industry projections show cattle numbers will increase, McRae added that supply would remain tight. "Another favourable year, feed-wise, for producers should see herd rebuilding continue to limit female turnoff," he said.

"At the same time producers will compete for young cattle for finishing. This will present challenges for the grain feeding sector. Global demand for beef is expected to be sustained, if not strengthen while at the same time global beef prices are tracking at historically high levels."

Cattle delegation on hold

THE NT Government has put on hold a delegation to Indonesia in response to cuts in quotas for the importation of live cattle from Australia according to a report in The Weekly Times.

The cuts came in mid December with the Indonesian Government reducing the quota from Australia for 2012 to 283,000 head, a follow on from the reduction to 520,000 last year. The quota was more than 700,000 in 2009.

On December 16, Territory Chief Minister Paul Henderson said in a statement that he was prepared to send a delegation to Indonesia of Northern Territory government and industry as soon as possible to meet with relevant officials to see how they could work with Indonesia to ensure the mutually beneficial trade relationship continues.

Primary Industry Minister Kon Vatskalis said in a statement the Government would "continue to discuss cattle exports with Indonesia and will advise in the near future when a visit is likely to take place".

NT anger remains over live cattle export ban

NORTHERN Territory Opposition Leader Terry Mills says the impacts of the Gillard Government's blanket ban on live beef exports are still being felt in both Indonesia and Australia says Queensland Country Life.

Mills said during a series of meetings in Indonesia last week it was made very clear the Federal Government had been foolish to underestimate the resilience of the Indonesian people.

"The view from Indonesia expressed by senior journalists, former ministers, the Chamber of Commerce and serving politicians was the ban was a stupid decision counter-productive to Australia and serve to strengthen Indonesia," Mills said.

"The effect of the ban was to interrupt Indonesian beef supplies in the short term, but in the long term raised the issue of food security. Until the blanket ban, self sufficiency was seen as an aspirational goal. Now it is a key national objective."

Exciting times ahead for Beef 2012 event

The countdown has started towards the week-long Beef 2012, one of the world's great meat and livestock industry events, according to online news service beefcentral.com.

Beef Australia 2012 will bring together cattle industry leaders and innovators from around the world for a week of international trade opportunities and cattle shows and sales.

There will also be industry seminars, property tours, commercial and stud cattle and carcase competitions, entertainment, branded beef restaurants, beef cooking demonstrations and much more.

More than 70,000 visitors from 32 different countries attended the last event in 2009 with this year's extravaganza set for Rockhampton, in Central Queensland from May 6 to 12.

CCA embarks on major reform

The Cattle Council of Australia has embarked on a major reform process with the release yesterday of a proposed new restructure model for industry consultation according to online news service beefcentral.com.

If accepted in its current form the proposed model would see beef cattle producers given the choice to divert part of their $5/head cattle transaction levy payments towards funding national representation activities.

The news service says that under the draft model the new board would comprise a mix of directors nominated by State Farm Organisations and directly-elected levy payers.

Cattle Council of Australia has also announced it will soon start the development of a Beef Industry Strategic Plan in consultation with industry to prioritise strategic imperatives for the newly restructured body, and to outline required funding levels.

100-day variables change, but trading result stays the same

Recent heavy corrections in feeder cattle price and forward contract grainfed cattle price have seen some big adjustments in Beef Central's latest feedlot breakeven calculations.

But the online new service says that the variables largely cancel each other out, and the end profit/loss result is little changed from the previous calculation done a fortnight ago.

Last week's trading budget based on Beef Central's standard 100-day grainfed beast exiting the feed yard in May, week two, suggests a trading result of negative $25 to negative $70, depending on which sell price is applied.

That compares with a negative $43 trading result from Beef Central's last calculation completed on January 9, and still considerably worse than a +$1 trading result seen as recently as late October.

Feedgrain outlook: Sorghum harvest poised to start

The sorghum harvest could start as early as this week, weather permitting, with the bulk of harvest still looking to start around mid-February according to online news service beefcentral.com.

Growers are reluctant sellers at current price levels, but are concerned about potential harvest storage pressures and the general lack of demand from lot feeders and domestic consumers.

Sorghum traded last week at $195 delivered Brisbane which works back to $162 on-farm inner Downs, and Western Downs growers would more likely be in the $150s range on-farm.

Stronger CBOT wheat and corn futures have come on the back of disappointing weekend rains across Argentina with only 60pc receiving less than 12.5mm (half an inch) of rain in the sorghum and corn belts. Trading is expected to become more volatile as grain moves into a weather market.

Saleyards investing in the future

SALEYARDS across NSW recorded reduced livestock throughput again last financial year, but that's not stopping some centres from spending big bucks on improvements, expansions or relocations says The Land.

The Gunnedah saleyards, in the State's North West, will undergo a major revamp which will include the construction of 60 new selling and holding pens. Gunnedah Shire Council has set aside $850,000 for the approved development.

In line with improvements to animal welfare standards at the yards, the paper says that provisions have also been made for additional installation of shade cloth over sections of the yards.

Gunnedah mayor Adam Marshall said the expansion and improvement works will not only increase the holding capacity of the saleyards but also ensure Gunnedah continues to remains ahead of the industry pack.

Survey into stock routes

TRAVELLING stock routes and reserves have been an important part of Australian heritage as they facilitated the opening up of agricultural land, the development of primary production and the creation of regional centres and towns throughout the State says The Land.

It was this history of travelling stock routes and reserves (TSRRs) that founded the basis for university student Michael Dunn's study into the significance of TSRRs and reserves in today's society.

Dunn is undertaking his honours degree in archaeology at the La Trobe University and hopes his thesis will provide information for various stakeholders, such as the Livestock Health and Pest Authorities, to manage TSRRs into the future.

As Dunn is a fifth-generation landholder farmer at "Weebo Park", Bungowannah near Albury, he was particularly interested in TSRRs in the south of the State, but would like to assess TSRRs further north, especially near Tamworth.

Roma cattle values drop up to 22c/kg

NUMBERS declined to 3081 head (down 2616 head on the previous week) after widespread rainfall across the supply area at Queensland's benchmark Roma's Store Sale last week says Queensland Country Life.

The quality of steers offered was mixed, while better lines of heifers were presented. Overall, the paper says that the market followed a similar easing trend to other Queensland markets.

According to the official MLA National Livestock Reporting Service, the market was down from 6c to 22c/kg depending on the category of cattle. NLRS said there was little demand from feedlots for medium weight yearling steers which resulted in restockers picking up those steers at cheaper prices of up to 19c/kg.

Export feeder buyers stood on the sidelines preferring to wait for better quality cattle to become available. Meanwhile, the majority of the export processors were present but only showed restrained demand.

Wealth of exhibitors for Hamilton Beef Expo

THERE will be events galore at the Hamilton Beef Expo with beef competitions, young auctioneers, fodder, handlers and the popular man versus dog competitions taking place says Stock and Land.

Trade displays and competitions will be held over two days, February 9-10, with the live judging of the domestic carcase competition held on Monday at the Hamilton saleyards.

Murray Grey cattle will be the feature breed and Corey Ireland, stud principal of Ireland's Angus, Wagga Wagga will have the task of judging the feature show line up.

Interbreed events will be judged by Duncan Newcomen, Ashwood Park Charolais.

The second annual man versus dog challenge will take place on Thursday February 9 from 5pm. The challenge is open to sporting clubs and individuals who, as a team, will take on a sheep dog in time trail tests.

MLA UPDATE

Outlook for Japan in 2012

Demand for beef in Japan is expected to start gradually recovering in 2012, following a very tough 2011, with increased US beef imports facilitating a forecast rise in consumption.  The Japanese trade media Chikusan Nippo and Shokuniku Sokuho both issued their market projections recently, with each outlet forecasting a 5-10% growth in total beef imports for 2012.

Under the assumption that there will be changes to the US beef import protocols (from the current less than 21 months age restriction, to less than 30 months) during the middle of the year, US beef imports are predicted to reach 160,000 tonnes swt. This would be an increase of 35% on 2011's 118,300 tonnes swt (estimate).  Imports of Australian beef for 2012 have been forecast to be steady, to slightly lower on 2011, with the strong A$ and increased competition from the US impacting demand.

Japanese beef production in 2012 is forecast to be 2% lower than last year, at around 340,000 tonnes (boneless equivalent). Along with tight consumer spending in recent years, 2011's nuclear contamination issues and subsequent decline in demand are expected to continue challenging the Japanese. However, the market's economic improvement and consumers' confidence in the safety of beef will most likely to hold the key to the final consumption levels in 2012.

Japan trades in the red for 2011

Japanese businesses and economists were alarmed this week by the news of Japan's first annual trade deficit in 31 years in 2011, with some economists citing "(the deficit) poses the risk of serious damage to the economy". Earlier in the week the International Monetary Fund lowered its growth estimates for Japan in 2012 to 1.7%, down from the previous estimate of 2.3%.  

The trade imbalance was largely caused by subdued exports (disrupted by the March 11 earthquake and strong yen), and increases in energy and food imports.

In the Japanese wholesale market this week, the trade reported slow interest in both Australian and US chilled beef. Australian beef export indicative prices were not available this week due to the short trading week.

Friday daily livestock summary

Rain limited numbers at Dalby and quality was mixed. Light yearlings steers to feed made around 242¢/kg. Heavy yearling steers to feed were back averaging 199¢/kg. Heavy grown steers to slaughter were 12¢ cheaper, selling from 174¢ to 186¢/kg. Heavy D4 cows topped at 165¢ and averaged 153¢/kg. 

Throughput decreased at Casino with rain a contributing factor. Medium weight vealer prices to slaughter gained 3¢, as most pens sold from 228¢ to 248¢ to average 241¢/kg. Medium weight vealer heifers to slaughter averaged 243¢/kg. The medium D3 beef cows averaged 144¢/kg.

After Wednesday's markets the Eastern Young Cattle Indicator (EYCI) was 15¢ lower for the week at 390.25¢/kg cwt. Trade steer prices lost 9¢ - to 199¢ and feeder steers were 11¢ lower on 207¢/kg lwt. Heavy steer prices were firm settling on 7¢ lower on 181¢ and medium cows were back 3¢ to 144¢/kg lwt.

Lamb numbers fell away at CTLX. Light young lambs suitable for restocking sold from $86 to $100/head. Light trade lambs made 510¢ to 543¢ while heavy lambs averaged 505¢/kg cwt. Mutton prices remain firm with Merino 2 score ewes ranging from $56 to $80 to average $68/head.

A further reduction in lamb supply saw prices climb higher at Hamilton. There were very few heavy lambs offered. Light young lambs suitable for restocking sold from $85 to $95 to average $90/head. Young 3 score trade lambs made from 487¢ to 568¢/kg cwt. Trade lambs 3 score averaged 554¢/kg cwt.  Heavy 4 score lambs ranged from $133 to $138/head to average 530¢/kg cwt.

At the close of Wednesdays market the eastern states restocker indictor gained 7¢ on last week to settle at 530¢/kg cwt. Merino lambs also increased 8¢ to average 438¢/kg cwt. Light lambs increased 2¢ to average 486¢/kg cwt. Trade lambs were 17¢ dearer at 501¢/kg cwt, while heavy lambs were also 13¢ dearer at 480¢/kg cwt. Mutton prices have slightly increased up 6¢ at 289¢/kg cwt.

Eastern states prices varied

There was a smaller panel of supermarket and trade buyers operating this week at most eastern states selling centres, with some buyers again choosing not to make purchases. Combined with the influence of the disrupted trading week, due to the public holiday, competition was reportedly weaker at most saleyards. However, restockers continued to be active on suitable lines, despite the onset of some very hot conditions across the southern states.

The eastern states light lamb indicator was back 6¢ on last week, finishing Wednesday at 481¢/kg cwt. The cheaper trend continued with restocker lambs falling 12¢, to average 513¢/kg cwt. In contrast, Merino lambs increased 12¢ on last week, settling at 438¢/kg cwt.

The trade lamb indicator increased 14¢ on last week, averaging 496¢/kg cwt. There was a good selection of quality heavy lambs offered, which had a positive impact on prices, averaging 13¢ higher on last week, at 479¢/kg cwt.

Cattle prices retreat

Cattle prices at saleyards reported by MLA's NLRS continued to retreat this week, as eastern states markets showed some traditional January softness.

A combination of easing demand, with most of the major processors still only operating at reduced volumes, and steady supplies has impacted prices, pushing them below the levels witnessed throughout December.

A major factor behind the cheaper trend has been the slow start to the year in export markets, which has been accentuated by the rising A$. The sluggish start to 2012 for beef demand has been matched by processors continuing to kill at reduced capacity - which is being reflected in the competition for slaughter grades.  The short trading week due to the Australia Day public holiday this week added further to the subdued trading conditions. Export grades have been the most affected, with grown steer and cow prices declining steadily during the first three trading weeks of 2012.

Heavy rain in the past week, with the forecast for more to come across almost all of Queensland and northern NSW in the coming week will most likely tighten supplies considerably heading in February. Given the very likely tighter supply outlook, many processors have also flagged their intention to remain operating at reduced capacity, with some undertaking maintenance closures. The absence of buyers has further weakened competition in the physical markets, while direct to works prices have also eased. While cattle quality as a whole remains above average, it has been noted that more under conditioned lines have been appearing in recent weeks.

After Wednesday's markets the Eastern Young Cattle Indicator (EYCI) finished on 390.25¢, down 14¢ for the week - the biggest weekly decline since autumn 2011. Despite the decline, the EYCI is relatively steady compared to the same period last year, and remains 9% above the five-year average for January. The national yearling steer indicator was 9¢ below last week, finishing on 199¢, while feeder steers were the hardest hit, falling 11¢, to 206¢/kg lwt.

The national heavy steer indicator fell 7¢ on last week to average 181¢/kg lwt. The medium cow indicator was also weaker despite lower numbers, finishing 8¢ lower, at 140¢/kg lwt.

Cattle OTH rates ease

Over the hooks (OTH) rates as reported by MLA's NLRS decreased in every state this week, with softer market conditions reported across every category. Weaker demand and the shorter trading week impacted OTH rates, while a number of Queensland processors are closed for annual maintenance. The high A$ is also influencing buyer demand, particularly across the export grades.

While the cheaper OTH rates followed the falling trend observed in the physical markets, the number of cattle available was reportedly good. Nationally, medium weight yearling steers (220 -260kg cwt) averaged 347.5¢/kg cwt, settling 1% lower for the week. Excellent conditioned 0-2 teeth grown steers (300-420kg cwt) averaged 332.25¢/kg cwt, declining 4.5¢ for the week.

Direct to works cow prices reflected the easing demand for manufacturing beef, with some lines reportedly discounted for being over-conditioned. Nationally, light cows (200 - 240kg cwt) averaged 264¢/kg cwt, while the heavyweights (over 320kg cwt) settled at 288.5¢/kg cwt.

Naracoorte weaner heifer sale

There was a mixed quality yarding of just over 3,500 head at the Naracoorte heifer weaner sale last Friday. Angus heifers made up the largest portion of the market, with Murray Grey, Hereford, Black Baldy, Shorthorn, European and British cross heifers also on offer.

Demand was solid from feeder, restocker and wholesale orders from a wide range of regions. Overall the heifers averaged 202¢/kg lwt, or around $580/head.  South Australian restocker orders came from Penola, Mauope, Naracoorte, Keith, Lucindale and Wattle Range, with feeder purchases from Padthaway and Burra.

There were also strong interstate orders from Ballarat and Warrnambool, with a Tasmanian order operating for Smithton clients. NSW orders were also prominent, with cattle returning to Scone, Yass, Holbrook, Wodonga and Mildura. There were also two domestic processors purchasing throughout the sale.

Light weaner heifers were in limited number, largely reflecting the favourable seasonal conditions.  Good quality medium weight Angus lines generally sold from $573 to $675/head, after topping at $740/head - ranging from 213¢ to 232¢/kg lwt. There were some plainer Angus medium weights offered, which brought $542 to $632/head, or 192¢ to 224¢/kg lwt. A good numbers of medium weight Hereford heifers were offered, but varied in quality, with sales generally ranging from $504 to $610/head, but reaching as high as $640/head.  Sales ranged from 197¢ to 216¢/kg. British cross medium weights averaged $490 to $618/head, or 192¢ to 222¢/kg lwt.

Angus weaner heifers dominated the heavy end of the sale, ranging from $630/head, with one exceptional pen topping at $920/head after some spirited bidding. This left most sales closer to $731/head, or 208¢/kg lwt. The European cross heavy weights made to $750/head, although most were closer to $650/head, or around 189¢/kg lwt. The Black Baldies reached $755/head to average $733/head, while the British cross lines averaged around $642/head.

Cattle market enters an interesting phase

As cattle prices fell again this week across the eastern states, the market is set to enter a very interesting period. The smaller number of buyers again influenced cattle prices this week, along with the shorter trading week, with the EYCI finishing Wednesday at 390.25¢/kg cwt.

While very heavy rain has already brought significant flooding to coastal regions of Queensland and NSW, there are further forecasts for very heavy falls across inland regions in the coming week. If such falls eventuate, the movement of cattle will be significantly disrupted, placing considerable supply pressure back upon the markets.   

The rising A$ has contributed to a sluggish start to 2012 for export beef demand, possibly accentuated by the bleak economic outlooks released in the past two weeks by the World Bank and the International Monetary Fund. Australian beef shipments for the first 20 days of January barely exceeded 26,000 tonnes swt (DAFF) - on pace to be one of the lowest export months in recent history. However, the rapid finish to the 2011 beef export year may also be a factor contributing to the slow start to 2012, accentuated by a lack of available beef in January, with many processors still operating at reduced capacity.

In contrast to the cattle market, national lamb price averages increased for most categories this week, assisted by a contraction in yardings - a result of both the shorter trading week and falling prices in previous weeks. Trade and heavy weight lambs averaged 19¢ and 14¢ higher, at 509¢ and 485¢/kg cwt, respectively.

US cattle on feed decline

The latest United States Department of Agriculture (USDA) Cattle on Feed Report showed that the number of cattle in US feedlots (exceeding 1,000 head) totalled 11.86 million head at the start of 2012. With the number of cattle on feed rising throughout 2011, the decline for January 2012 represents the first month-on-month contraction since July 2011.

While the number on feed in January fell 2% on December 2011, numbers are still 3% higher year-on-year. Leading to the decline in numbers on feed was a 6% decline in placements during December, to 1.68 million head.

The fall in placements can be attributed to improving pasture conditions and historically high placement rates throughout summer and autumn of 2011, which limited the supply of cattle available for placement in the final month of 2011. Producers are also expected to hold additional heifers in 2012, which will further reduce calf and feeder cattle supplies.

Prices continue to rise in US

US imported beef prices increased again this week, matching a slightly stronger domestic market. The indicative imported price for Australian 90CL beef increased 1¢, to 205US¢/lb - the joint highest weekly price on record, matching the levels reported in the final week of March and first week of April last year.

However, the influence of the higher A$ continues to erode some of the returns to Australian exporters from the historically high US imported beef price. With the A$ nudging over 106US¢ this week, returns to Australian exports from 90CL beef contracted 6¢, to 399.4A¢/kg FAS - falling below 400¢ for the first time in 12 weeks.

Contributing to the higher beef prices has been a slower start to US weekly cow slaughter in 2012, with a 6% decline dairy cow throughput offsetting a 4% rise in beef cows.

Pre-report estimates (USDA report to be released on Friday, 27 January) expect the US cattle herd to have fallen 1.6% during the past year, totalling 91.1 million head - the lowest level since 1958.

Steady hide prices

Hide prices were steady this week, although reportedly increased demand caused selected Wet Blue categories to increase.

International demand is being led by Chinese orders and the high A$ has again impacted margins.

Australian beef production to expand in 2012

Continued strong demand from an increasingly diverse range of global markets will combine with favourable seasons to drive an expansion in Australian beef production and exports in 2012, according to Meat & Livestock Australia's 2012 cattle industry projections released this week.

Australian beef and veal production for 2012 is forecast to reach a record 2.197 million tonnes cwt, up 2.2%, as good seasons result in heavier average carcase weights. The influence of higher marking rates since 2010 will also be reflected in cattle turnoff and beef production over the medium term.

Total adult cattle slaughter for 2012 is forecast to reach 7.55 million head - up 3.1% on the previous year. However, while cattle turnoff will increase on the previous year, supplies will remain relatively tight compared to the herd liquidating drought years of the past decade. Another favourable year, feed-wise, for producers should see herd rebuilding continue to limit female turnoff, while producers will compete for young cattle for finishing.

Global demand for beef is expected to be sustained, if not strengthen in 2012. Total Australian beef exports are predicted to rise 2.7% in 2012, to 975,000 tonnes swt, driven by expansion into Russia, the Middle East and most southern Asian markets. Traditional export markets will continue to be challenging, with the exception of the US market which is forecast to improve 28% in 2012, as high prices attract additional product, reversing almost a decade of falling Australian shipments.

Australian beef exports to both Japan and Korea are forecast to decline in 2012, as competition from US beef increases, taking advantage of improved market access conditions and a weak currency. Australian shipments to Japan are forecast to contract 4% on 2011, to 330,000 tonnes swt, while exports to Korea are forecast to decline 15% year-on-year, to 125,000 tonnes swt.

The outlook for the live cattle trade in 2012 continues to be dominated by prospects to Indonesia, with total exports currently forecast to decrease 16% in 2012, to 570,000 head.

NZ beef exports lower in 2011

New Zealand (NZ) beef exports in 2011 declined 9% year-on-year, to total 330,999 tonnes swt - the lowest calendar year total since 2002 (NZ Meat Board). The lower shipments for the year were largely due to an estimated 6% contraction in production, while the volatility of the NZ dollar also had some influence on exports volumes.

Despite falling 5% year-on-year, the US remained the largest export destination for NZ beef, totalling 148,963 tonnes swt - capturing 45% of the market share. Exports to South East Asia (37,268 tonnes swt) and Japan (29,194 tonnes swt) also fell by 29% and 10%, respectively. Indonesian permit issues and the natural disasters in Japan were important factors to these markets, while beef shipments to Korea increased 3%, to 33,526 tonnes swt.

NZ beef exports for the month of December declined 46% year-on-year, totalling 18,500 tonnes swt. Reportedly, demand is expected to increase in January as a result of strong promotional activity in the US (NZX Agrifax). 

Record Aussie beef exports to South Asia in 2011

Australian beef and veal exports to South East Asia and Greater China reached a record high in 2011, surpassing the previous high from 2010. According to the Department of Agriculture, Fisheries and Forestry (DAFF), Australian exports to the region totalled 141,972 tonnes swt - 7% higher year-on-year and 46% above the five-year average.

The overall jump in shipments for the past year was driven by improvements to almost all markets, with the exception of Indonesia, which fell 18% year-on-year, to 39,590 tonnes swt. While this was still the third highest calendar year total to Indonesia on record, and Australia's largest single destination for the region in 2011, exports were disrupted early in the year with import permit issues.

While the only other market besides Indonesia not to register a record high for 2011 was the Philippines, Australian shipments did increase 9% year-on-year,  to 20,998 tonnes swt.

Taiwan proved to be a stand out export destination for 2011, with shipments increasing 19% year-on-year, to 36,746 tonnes swt. Shipments to Taiwan were boosted by the gradual shift in focus to Australian beef in modern retail outlets, an expanding fast food sector and a fall in shipments from the US.

Exports to Malaysia (14,436 tonnes swt), Singapore (9,659 tonnes swt), Hong Kong (8,870 tonnes swt), China (7,754 tonnes swt) and Vietnam (1,430 tonnes swt) all rose significantly in 2011, rising 23%, 27%, 26%, 38% and 46% year-on-year, respectively. Strong demand from a growing foodservice sector and reduced competition from other countries, such as Brazil and Uruguay assisted demand for Australian product.

The record beef and veal exports for 2011 were helped by a 5% year-on-year rise in shipments for December, to 12,576 tonnes swt. Exports to Taiwan (4,117 tonnes swt), Malaysia (1,292 tonnes swt) Singapore (1,008 tonnes swt), China (635 tonnes swt) and Vietnam (302 tonnes swt) all increased for the month, with declines to Indonesia (2,679 tonnes swt), the Philippines (1,623 tonnes swt) and Hong Kong (755 tonnes swt).

Beef and veal offal exports hit record high in 2011

Australian beef and veal offal exports hit a record high in 2011, rising 2% year-on-year, to 130,765 tonnes swt (Department of Agriculture, Forestry and Fisheries).

The record volume for the year was despite offal exports to Japan, Australia's largest export destination, falling 4% year-on-year, to 24,891 tonnes swt. The higher A$ and increased competition contributed to the lower Australian shipments to Japan for 2011. In contrast to Japan, shipments to Korea (21,921 tonnes swt) and Russia (15,422 tonnes swt) both increased, rising 5% and 6% year-on-year, respectively.

Tripe (29,105 tonnes swt or 22% of total exports) was the most popular offal type exported in 2011,  increasing 2% year-on-year, with shipments to Hong Kong accounting for 69% of shipments. Liver exports accounted for 25,273 tonnes swt sent in 2011, or 19% of total exports, with volumes largely unchanged on the previous year. Other highly demanded cuts sent throughout 2011 included skirt (12,643 tonnes swt, or 10%), heart (10,581 tonnes swt, or 8%) and tongues (8,194 tonnes swt, or 6%).

Sheep offal exports increased 8% year-on-year, to 20,526 tonnes swt - with the rise in shipments despite a fall in both lamb and mutton production.

Sheep offal shipments were dominated by exports to the Middle East (9,618 tonnes swt) and Hong Kong (6,540 tonnes swt), with volumes rising 4% and 32% year-on-year, respectively. Liver (8,137 tonnes swt) and tripe (6,997 tonnes swt) exports dominated the market share in 2011, rising 5% and 12% year-on-year, respectively.

Beef, lamb exports soar

LAMB and beef exports produced near-record figures last year with a surge of 3 per cent. The Weekly Times says Australia fell just short of sending more lamb overseas than consumed domestically.

The results are a stellar performance for the red meat industry, which achieved top-three finishes despite international economic turmoil, a high Australian dollar and natural disasters locally and overseas.

On the beef front, Australian product increased its international stake by producing its third-best export performance to date. The 949,195 tonnes exported last year was boosted by a late run to the line, with December figures setting a record volume of 82,054 tonnes.

An MLA spokesman said last year's growth in exports "reflected the very strong underlying global demand for Australian beef". Lamb exports totalled 160,007 tonnes last year, also the third-highest export volume.

Housing devours farms

AUSTRALIA has lost five times more farmland to urban sprawl than to foreign buyers according to a report in The Weekly Times, with 89 million hectares vanishing in a generation.

The paper says that massive housing subdivisions, national parks and forestry plantations and mining leases have chewed up 18 per cent of Australia's agricultural land since 1984.

The Planning Institute of Australia has warned a federal government taskforce drafting the nation's first "food plan" that the conflict over rural land is "one of the most significant issues facing food production".

"Urban development is paving over farmland on the edge of our metropolitan cities," the institute says in its submission. "Australia's agricultural land is a scarce and finite resource. There is a need to ensure that grows the food is preserved for that purpose."

Growers lose millions

GRAIN growers have lost millions of dollars in pool payments from Walgett Special One Co-operative, which is based in the northern NSW town of Walgett, according to a report in The Weekly Times.

Growers who delivered to the 2010-11 wheat harvest pool received letters this week advising they would not be paid the last payment due in May. Chairman Neil Warden wrote all other old and new season pools, along with cash payments, were unaffected.

The Weekly Times understands more than 100 growers who delivered 200,000 tonnes of wheat into the pool last season have been affected by the losses, which it says are believed to be more than $10 million.

Warden said in the letter to growers WSOC chief executive officer Ed Colless was on leave "due to ill health". The Weekly Times understands the co-op discovered the shortfall about December 22 but kept the news quiet until a posting on its website on January 6. It took another week to tell pool participants the news.

Prepare for power outages: VFF

FARMERS to be affected by Victorian electricity changes during high fire danger periods are already being urged to prepare for outages according to a report in The Weekly Times.

Victorian Farmers Federation president Andrew Broad said the changes for customers along single wire earth return power lines from Monday would result in longer periods without power if faults occur.

The changes are part of the Victorian Government's bid to reduce the risk of bushfire. "There will be about 6000 customers in the west of the state that will get a letter notifying of the change. I urge all farmers to heed this warning," Broad said.

"The changes to the management will mean that every fault for those 6000 customers will require a crew to investigate before power will be returned during that six-week period," he said.

Canberra slammed for ag export inaction

THE Federal Government has been accused of repeating old announcements to disguise a lack of progress in agricultural exporters according to a report in The Weekly Times.

Federal Agriculture Minister Joe Ludwig announced last week that changes to AQIS export certification would "deliver better and more flexible arrangements for exporters". Ludwig said Canberra would provide $30 million in support to six industries and a further $30 million annually in savings from reduced red tape.

But Opposition agriculture spokesman John Cobb said the $30 million in savings was originally announced in 2009. He said most of the other $30 million, which is directed towards meat processors, was announced last September.

Cattle Council of Australia chief executive David Inall said the CCA supported export reform. "This is particularly relevant to the growing outlays for export inspections and approvals that are ultimately passed back to producers," he said. Last week's statement lists $52.8 million in benefits to the meat industry.

Cattle prices ease on higher numbers

A 23 pc increase in saleyard yardings across Australia during the past week has resulted in softer prices for all categories according to online news service beefcentral.com.

Young cattle in particular have been in abundant supply, boosted by the annual run of weaner calf sales across Victoria and SA. NLRS said yearling and vealer cattle had dominated yardings at physical markets across the country in the past week. 

Higher than expected numbers this week and delays in returns to full processing by some plants have been identified as reasons for the easier price trend experienced across all categories over the past seven days.

The benchmark Eastern Young Cattle Indicator has eased by 9.25c/kg cwt to stand at 404.5c/kg. It is now 5pc lower than the all-time-high of 428c/kg it reached in the final week of 2011.

Diesel fuel prices stabilise

Diesel fuel prices in non-metropolitan areas have stabilised at an average retail price of about 152c/l during early stages of 2012, recent industry data shows according to online news service beefcentral.com.

Information released by the Australian Institute of Petroleum shows prices are currently about 2c/l higher than where they sat during the October-November period last year, but a little softer than where they sat this time a month ago.

Global oil demand growth for 2012 has now been trimmed by 1.1 million barrels, down about 11pc from earlier estimates. Lower demand could lead to lower diesel prices as the year progresses, some analysts argue.

At a state-by-state level, regional diesel prices in the recent AIP report included:

• Victoria 149.3c/l (down 0.8c on December)
• NSW 151.5c (down 0.8c)
• Queensland 151.4c (down 0.6c)
• WA 156c (down 0.5c)
• SA 150.9c (down 0.7c)
• TAS 153.8c (unchanged), and
• NT 164.6c (down 0.1c).

Breedplan beef up on track

Cattle producers will soon be able to more accurately identify animals with superior genetics for a range of commercially important traits according to online news service beefcentral.com.

The Beef CRC and MLA have announced the new genomic predictions for carcase and beef quality, feed efficiency and female fertility traits such as puberty, first-calf re-breeding and lifetime reproductive performance in tropically adapted cattle breeds will be incorporated into Breedplan from May of this year.

The report says that the new predictions are expected to improve the accuracy of current estimated breeding values (EBVs) that are based on extensive phenotypic records and pedigree information.

To develop the new predictions the Beef CRC genotyped more than 10,000 research animals and industry sires using the latest DNA super chips. Genomic predictions within breeds were calibrated based on DNA samples from 1300 high accuracy sires across several breeds.

Tighter supply for US meat proteins

World Agricultural Supply and Demand (WASDE) forecasts for US beef and other meat protein supplies in 2012 continue the broad expectation US meat protein supplies will be tighter this year says online news service beefcentral.com.

That is likely to underpin firm protein prices, particularly given forecasts of strong exports for all three main species - beef, pork and chicken. The decline in US-produced meat protein supplies is due to smaller beef and broiler production.

Total domestic US beef production for 2012 is now forecast at 11.4 million tonnes, slightly higher than the forecast put forward by WASDE in December but still 4.6pc lower than in 2011.

If this forecast for beef proves accurate, it would represent the smallest output number since 2005. As US producers bring fewer heifers to market, the supply of feeder cattle to feedlots will decline, reducing total beef production. USDA will publish its results of the latest cattle inventory survey on January 27.

Store stock shortage

AS MARKETS kick off for 2012, prices for females have largely maintained their strong rates despite a small dip as buyers take time to gauge the market according to a report in The Land.

Cows weighing between 400 and 520 kilograms last week averaged 152 cents a kilogram, which was down from 159c/kg recorded in December according to the National Livestock Reporting Service (NLRS).

It was a similar story to last year where cows in the same category were just one cent lower at 151c/kg. Landmark Armidale's Chris Williams said the New England market for females opened 2012 to reasonably strong rates, but not as strong as the close of last year, reflecting the State-wide trend.

"Generally at the beginning of each year the processors are trying to gauge the market and see who is buying what," Williams said. "Before Christmas, the best of the prime cows were making 180 c/kg, but last week they were down to 170c/kg to 172c/kg."

Plenty of reasons to visit Beef Spec 2012

LANDMARK'S involvement in the NSW Beef Spectacular and Trade Field Day stretches back to the event's inception says The Land and in 2012, the company has again sponsored what it sees as a vital cattle event.

Landmark Dubbo stud stock specialist John Settree says Landmark originally came on board with the NSW Beef Spectacular and Trade Field Day as a minor player and in the past three years or so has increased its involvement.

Settree, who, in previous Beef Spectacular events had been involved in the stud stock side of things as well as presenting the major ribbons, will be among several Landmark representatives present at Dubbo this year.

He said Beef Spectacular was a standout cattle event and the fact it had cattle as its focus made it an important event on the agricultural calendar. "As it is held in central NSW, with a mix of commercial and stud breeders attending, it is an ideal event for people to visit."

EYCI slips, but still solid

THE MLA's NLRS reported the Eastern Young Cattle Indicator fell 6.75c for the week finishing on Tuesday 18, to sit at 408.5c/kg cwt according to a report in the Queensland Country Life.

The EYCI is still however well above average. At the same time in 2010 the benchmark figure sat at 315.5c. NLRS said cattle prices have begun the year strongly, although a slight easing has been observed to the final weeks of 2011.

"The extra numbers and absence of some buyers has caused prices to weaken, although prices remain seasonally high," NLRS reports. Peter Daniel, GDL Dalby, said Dalby's sale on Wednesday 18 was a good, quality yarding of 4800 head.

Dalby has a strong reputation as one of the premier selling centres, and regular buyers were in attendance and operating well. Daniel said the market had come back slightly.

"Our numbers are starting to get back to a regular size, but there are still extra numbers coming forward, making the market a shade cheaper," he said.

Reminder to register livestock brands and earmarks

QUEENSLAND livestock owners are reminded to renew their brand, earmark and tattoo registration details with Biosecurity Queensland by January 31 says Queensland Country Life.

Biosecurity Queensland Deputy Registrar of Brands Pat Kalinowski said up-to-date brand and earmark registration enabled the ownership of livestock to be established and ensures brands were being used correctly.

"Any changes to address, name or other details should be made with the annual return," Kalinowski said. "Current information ensures owners have valid proof-of-stock-ownership documentation which is important if livestock are sold, lost, displaced during a natural disaster or stolen."

Owners can submit their brands return online at http://www.biosecurity.qld.gov.au /, by phone on 13 25 23 or in person at their local Department of Employment, Economic Development and Innovation office.

Bucks for brains on offer to cattle, sheep producers

QUEENSLAND cattle and sheep producers are being asked to continue their support in proving Australia is free from mad cow disease (BSE) and scrapie says a report in Queensland Country Life.

Biosecurity Queensland is offering payments for cattle or sheep showing symptoms of neurological disease so that BSE or scrapie can be excluded. Veterinary officer Kate Fryer said the National TSE Surveillance Program was designed to ensure Australia retained its status as being free from these two diseases.

"This program helps demonstrate to our trading partners and the World Organisation for Animal Health (OIE) that our cattle herd and sheep flock continue to be free from BSE and scrapie," Fryer said.

"The OIE has a series of guidelines that Australia needs to meet and, in order to do that, we need to collect and test brain samples from cattle and sheep. It's just one of many safeguards that help maintain market access for our livestock industries which are worth more than $4.5 billion to the state´s economy."

NSW buyers prominent at Naracoorte

A CAPACITY yarding at the Naracoorte Regional Livestock Exchange in SA saw almost half trucked to New South Wales destinations on Thursday says a report in Stock and Land.

Selecting from a penning of 5740, Sundown Pastoral was the major buyer sending 1150 to Inverell while Landmark national commercial livestock manager Mark Barton purchased 770 head on orders for Molong, Walcha and Warren branches.

Prices however eased on previous southeast weaner sales as heavy steers made to a top of $880 to average 208c/kg lwt while 300-350kg steers made $680- $780 and averaged 219 cents.

Other interstate buyers consigned cattle to the central and New England areas of NSW along with loads trucked to South Gippsland and Bairnsdale in Victoria. Feeder support was supplied by T&R Pastoral and Teys Australia Jindalee.

MLA UPDATE

Friday daily livestock summary

Numbers lifted at Roma and all the usual buyers were present. Heavy grown steers eased 4¢, as most pens sold from 181¢ to 189¢/kg. The best quality bullocks finished 6¢ cheaper on 185¢/kg. Medium weight D3 cows were a shade cheaper on 150¢, and the better conditioned heavy D4 pens averaged 164¢/kg.

Throughput was firm at Dubbo with yearlings in the greatest numbers. Light yearlings to restockers sold 6¢ dearer on 232¢, while medium feeder steers fell 10¢ - to 216¢/kg. Yearling heifers to feed mainly sold from 180¢ to 204¢ and the trade heifers made 193¢/kg. Grown steers to feed made 195¢ and the drafts to slaughter averaged 184¢/kg. Heavy D3 cows fell 8¢ - to average 149¢/kg.

Supply increased at Bairnsdale and quality remained fair. Heavy yearling steers to the trade settled on 185¢ and the heifer portion averaged 173¢/kg. Heavy grown steers were up to 9¢ cheaper, selling from 175¢ to 185¢/kg. Heavy beef cows were mainly 8¢ lower, selling from 136¢ to 144¢/kg.

After Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 9.25¢ lower for the week on 404.5¢/kg cwt. The trade steer indicator fell 7¢ - to 208¢ and feeder steer prices were 3¢ lower on 217¢/kg lwt. Heavy steer prices slipped 6¢ - to 187¢ and medium cows finished firm on 147¢/kg lwt.

Lamb numbers decreased this week at Wagga. Light lambs to restockers ranged from $75 to $102 which was $12/head cheaper. Trade weight 3 score lambs averaged 481¢, finishing 9¢/kg cwt higher. There were fewer medium and heavy weight lambs on offer. Heavy 4 score lambs were up 5¢ averaging 473¢/kg cwt. Medium weight Merino ewes ranged from $47 to $75/head.

At the close of Thursday's market the eastern states restocker lamb indicator fell 28¢ on last week to 510¢/kg cwt. Merino lambs were down 19¢ to settle at 430¢ and light lambs decreased by 18¢ averaging 479¢/kg cwt. Trade lambs were 4¢ cheaper on 486¢, while heavy lambs eased 9¢ to settle at 468¢/kg cwt. Mutton prices have decreased with the indicator down 24¢ to 284¢/kg cwt.

Japan trade unhurried

Australia's beef trade with Japan has started slowly in 2012, with interest from the market during the last two weeks being soft and sporadic. Better weather in Queensland (compared to last year's flooding), combined with reduced interest for Australian beef from Korea seems to have influenced Japanese buying, with many traders a ‘wait-and-see' approach.

There had been increased interest from Japan for Australian navel end brisket in late December, following the discovery of a US shipment with Specified Risk Material (SRM). A subsequent import ban on the US plant caused a shortage of US short plates in Japan, with the wholesale price of the frozen product averaging 690 yen/kg this week - the highest since January 2010. Prices of Australian navel end brisket remained steady at 470 yen/kg this week, with the trade anticipating an increase in interest from end-users in coming weeks.

Brazilian beef exports fall 14% in 2011

Brazilian beef exports declined 14% in 2011, to 820,239 tonnes swt, establishing it as the world's third largest beef exporter behind Australia and the US (Global Trade Atlas). Contributing to the year-on-year decline in exports was constrained beef production, along with robust domestic beef demand.

The Middle East was the largest region for Brazilian beef shipments in 2011, with Iran (130,649 tonnes swt), Egypt (96,937 tonnes swt), Saudi Arabia (27,951 tonnes swt) and Israel (15,937 tonnes swt) all taking substantial volumes.

While Russia also accounted for a significant proportion of Brazilian exports, shipments for the year declined 20% year-on-year, to 228,822 tonnes swt. The decline in Brazilian beef shipments to Russia in recent years has been due to several factors; including the emergence of the Middle East, expanding domestic consumption, falling beef production in Brazil and several market access issues.

The latest forecast from the United States Department of Agriculture (USDA) predicts a 2% year-on-year increase in Brazilian beef and veal production in 2012. Most of the additional production is expected to be consumed in the expanding domestic market, fuelled by rising incomes and a growing middle class.

Australia supplies Korea with large variety in 2011

Australia exported a total of 146,347 tonnes swt of beef to Korea in 2012 - an increase of 18% year-on-year (DAFF). While the top five cuts shipped throughout the year were chuck roll (22%), blade (15%), manufacturing (11%), short ribs (11%) and brisket (9%), it was the first time since 2004 than manufacturing beef volumes exceeded short ribs.

Australian short rib shipments remained largely unchanged on the previous year - with over 99% of Australia's total short rib exports ending up in Korea each year. Short ribs make up almost 40% of total Korean beef imports, and are used for grilling, soups or stews.

Interestingly, while Australia captured almost 50% of Korea's total imported beef market share in 2011, it supplied only around 20% of the total short rib imports to the market. Shorts ribs made up almost 60% of total Korean imports of US beef and almost 45% of total New Zealand beef shipments (NVRQS).

Last year, Australia exported 19 different cuts to Korea with an annual volume exceeding 1,000 tonnes swt, highlighting an increasingly diversified trade.

Cattle supplies rally

National cattle yardings at markets reported by MLA's NLRS increased 21% this week, as selling centres across Australia returned to normal trading after the Christmas and New Year holiday period. Throughput was steady on the corresponding period last year.

Consignments across Queensland improved 86% on the corresponding week last year, with this particularly evident in the Darling Downs region, despite some isolated rain. Numbers at the Toowoomba sales increased substantially, while supplies were 35% higher at Dalby. The Roma store was the largest market, with most pens containing young cattle that sold to southern Queensland restockers.

Numbers also increased across NSW, as the majority of markets reported a lift in offerings. Producers appear keen to offload young cattle early in 2012, with plenty of light yearlings available. Dubbo and Wagga were the largest markets for the week, while numbers were generally strong through the Central West and Northern Tablelands regions.

Victorian yardings followed the higher trend increasing 11% on last week, with young cattle also dominating. Weather conditions have varied in southern Australia recently, which has been reflected in cattle quality, with some lines adversely affected by the temperature swings. SA throughput for the week went against the other eastern states, with numbers falling 13%, as producers look to trade cattle through the annual weaner sales.

WA producers continued to hold onto cattle with the favourable seasonal conditions reducing supplies.

Cattle prices ease in early 2012

Cattle prices have registered a cheaper trend during the first few weeks of 2012, with all major indicators back from the 2011 close. A combination of increasing supplies and reduced buyer activity has been attributed as the main driver behind the lower prices.

The EYCI commenced the year at 419.25¢ before gradually declining 4% to settle on 404.5¢/kg cwt after Thursday's markets. Young cattle consignments have expanded now that summer grazing conditions have set in. Additionally, restocker and feeder demand at prime markets has eased - instead looking to the annual weaner sales to source replacement cattle.

Prices for export categories have also come back, as processor demand gradually resumes. A number of export buyers are still yet to fully operate in the physical markets, preferring to take a cautious approach in the New Year. The heavy steer indicator declined 6% year-on-year, to 187¢, and medium cow prices were 4% weaker, on 147¢/kg lwt.

Global economic prospects remain subdued

The latest Global Economic Prospects report released by the World Bank forecasts that economic growth will remain subdued, if not deteriorate, in 2012 and 2013, with the high income advanced economies facing major challenges. With global economic growth in 2011 estimated to have reached 2.7%, 2012 growth is forecast at 2.5%, rising to 3.1% in 2013.

As has been the case since 2008, global economic growth in the coming years will continue to be weighed down by conditions in the advanced economies, led by the Euro area, Japan and the US. Overall growth in advanced economies for 2012 is forecast to reach only 1.4%, back from 1.6% in 2011, rising to 2% by 2013. Constraining the outlook for 2012 is the Euro area, with growth expected at -0.3% in 2012, with the US and Japan expanding at 1.9% and 2.2%, respectively.

In contrast, the growth outlook for developing economies in 2012 is forecast at 5.4%, expanding to 6% in 2013.The outlook for 2012 is underpinned by 8.4% forecast growth from China, 6.5% in India and 6.2% from Indonesia.

According to the World Bank, commodity prices are also expected to drop in 2012 and 2013, with non-oil commodities forecast to decrease by 9.3% in 2012 and a further 3.3% in 2013.

Expenditure on red meat is closely tied to income and consumer sentiment, and given the forecasts of further economic problems, concerns emerge regarding demand for red meat. Since the GFC in late 2008, demand globally for lower priced beef has increased, especially for frozen product, while higher priced chilled products have proved much harder to shift.

Hide prices stable

The local hide market was steady again this week. International demand has reportedly increased, with only some hide categories slightly dearer as a result.

The forthcoming Chinese New Year celebrations are expected to affect trade volumes.

Hesitant start to 2012 from Korean buyers

The majority of Australian beef exporters reported a hesitant start to the year from Korean buyers. Reportedly, sufficient stocks of imported beef and lower than anticipated beef sales ahead of Lunar Year had contributed to the subdued trading environment.  

Korea will enjoy a public holiday period from 22 - 24 January, with the Lunar Year celebrated on 23 January. Most Koreans will visit and spend time with relatives around the country, with gift-giving part of the tradition. The beef gift-set is a popular item for celebrations, although sales are usually below the Chuseok (Harvest Festival) levels later in the year.

As MLA reported last week, Korean farmers are struggling with falling cattle prices and high production costs. Some Korean newspapers reported this week that major Korean hypermarkets and department stores heavily discounted Hanwoo (domestic) beef ahead of Lunar Year in an effort to support local beef consumption.

US market maintains higher prices

The market for imported beef in the US was higher this week, with the activity greatest from US end users for the leaner 90CL and 95CL product. Beef prices, both imported and domestic, remain at historically high levels in early 2012, with most pundits tipping further rises.

Prices for 90CL beef edged 2¢ higher this week, to 204US¢/lb CIF, continuing the higher market level from late 2011. In A$ terms, imported Australian 90CL beef averaged 405.4¢/kg FAS this week, up slightly on the previous week.

The latest USDA production outlook for beef and veal highlights the tighter supply situation facing the US beef market in 2012 - currently reflected in both US cattle and beef prices. For 2012, US beef and veal production is forecast to contract 4.6% on 2011 levels, to 11.32 million tonnes cwt - the lowest annual level since 2005. In response to the tighter beef supplies, total US beef and veal imports are forecast to increase 2%, while US beef exports are tipped to consolidate the growth registered in 2011.

US beef exports on track for record 2011

US beef export values (both muscle cuts and offal) are poised to pass the US$5 billion mark for the first time during a calendar year, with shipments for January to November 2011 valued at US$4.9 billion (United States Department of Agriculture).

For beef muscle cuts only, US shipments for the first 11 months of 2011 increased 23% year-on-year, to 846,244 tonnes swt, while the high prices for beef throughout 2011 resulted in export values jumping 36% year-on-year for the same period.

Canada (160,579 tonnes cwt) and Mexico (144,513 tonnes cwt) remained the largest export destinations for US beef for January to November 2011, aided by proximity and the North American Free Trade Agreement. Exports to both Japan (129,552 tonnes cwt) and Korea (123,456 tonnes cwt) jumped by 33% and 34%, respectively, over the period, with the weak US currency making US beef more price competitive.

World food price index slides in December

The Food and Agricultural Organisation (FAO) Food Price Index, which measures the monthly change in international prices for five basic food commodities, declined 6% year-on-year in December, averaging 211 points. While easing since the record highs of February 2011, the fall in December represents the first year-on-year decline since October 2009.

The food price index surged through 2011, rising 23% on 2010 to average 228 points. Despite prices easing through the second half of 2011, the average price of 2011 was the highest level in both nominal and real terms since the FAO began measuring international food prices in 1990.

While the meat price index eased slightly on November, it still sits 8% higher year-on-year, to 179 points. The slight fall on last month coincides with a fall in pigmeat and sheepmeat prices. However, poultry and bovine meat prices recorded mild gains over this monthly period. On an annual basis, meat prices in 2011 averaged 16% higher than a year earlier, with all meat types, notably ovine meat, recording price increases throughout 2011.

The four other categories all fell in December, with the sugar price (327 points), oils price (228 points), cereals price (218 points) and dairy price (202 points) indexes declining 18%, 14%, 8% and 3% year-on-year, respectively. Driving the falls on November and last year was sharp declines in global cereals, sugar and oil prices, while slower demand put downward pressure on commodity prices. Despite these declines, all four categories averaged significantly higher prices through compared with the previous year.

Record Aussie frozen beef exports to Japan in 2011

Japan took a record volume of Australian frozen beef in 2011, at 203,779 tonnes swt, paired with the lowest chilled shipments (138,410 tonnes swt) since 1994. The increase in frozen shipments was due to strong demand for manufacturing beef and briskets, key ingredients for the fast food sector in Japan.

Manufacturing beef exports in 2011 totalled 116,150 tonnes swt, 4% below the record 2008 volume, but 3% higher than the previous year. Frozen briskets marked the largest volume on record, adding 13% on 2010, to 41,970 tonnes swt.

In contrast, Australian chilled beef exports to Japan remained challenged by the high A$, competition with the US (on the back of the low US$), and Japanese consumers' preference for lower priced proteins. While Australian chilled briskets shipments increased 4% year-on-year, to 25,339 tonnes swt, all other key cuts (such as chuck roll, blade and rounds) and fullset shipments decreased from the previous year, reflecting the tough trading and economic conditions throughout 2011.

NZ beef exports lower in 2011

New Zealand (NZ) beef exports in 2011 were down 9% year-on-year, at 330,999 tonnes swt, the lowest calendar year total since 2002 (NZ Meat Board). This drop was largely driven by an estimated 6% dip in production and the strength and volatility of the NZ$ throughout the year.

Despite falling 5% year-on-year, the US remains the largest export destination for NZ beef, reaching 148,963 tonnes swt to capture 45% of the market share. Most of this beef is bull and cow manufacturing beef for grinding. Exports to South East Asia (37,268 tonnes swt) and Japan (29,194 tonnes swt) also fell by 29% and 10%, respectively. Indonesian permit issues and the natural disasters in Japan were important factors in these areas. Beef shipments to Korea increased 3% to reach 33,526 tonnes swt in 2011.

NZ beef exports for the month of December were down 46% year-on-year, sitting at 18,500 tonnes swt. Demand is expected to increase in January as a result of strong promotional activity in the US in the lead up to the Super Bowl in early February (NZX Agrifax).

Alpine grazing decision looms large

SIMON Sumner refuses to accept that his horseback trek across the roof of the Victorian Alps might be the last that he gets to make, according to a report in The Weekly Times.

But that is what he and dozens of mountain cattle-farming families were facing at the weekend as they gathered for their annual get-together at the hamlet of Merrijig by Mount Timbertop, near Mansfield.

As Sumner and his fellow riders were traversing the high country the axe was poised to fall in Canberra on the last hope Victoria's mountain cattlemen have of being allowed to summer graze their herds in the Alpine National Park.

Federal Environment Minister Tony Burke will rule today (Monday) whether an application by the Victorian Government for a five-year, high-plains, cattle-grazing trial in the national park is approved.

Mr Burke, who has condemned mountain cattle grazing as causing unacceptable damage and labelled cattlemen as "selfish", must decide whether the research trial to test whether limited grazing helps reduce fire risk will cause unacceptable damage to the mountain environment.

Activists tied to feedlot fire

ANIMAL activists have burnt trucks and other equipment at American feedlot Harris Ranch in protest of what they call "factory farming'' according to a report in The Weekly Times.

In a message distributed by The North American Animal Liberation Press Office, the anonymous activists claim responsibility for destroying 14 trucks at the Harris Ranch feedlot near Coalinga, California.

The activists used containers of accelerant. Kerosene-soaked rope were placed beneath the trucks and ignited by remote control using digital timers. The action has outraged authorities and bewildered operators at Harris Ranch; the 14th largest in the US with a capacity of 100,000 cattle.

California Farm Bureau president Paul Wenger labelled the activists domestic terrorists. "The terrorists who attacked a beef production company in California this week must be arrested and prosecuted to the full extent of the law,'' Wenger said.

Indo requests cattle genetics

INDONESIA has last week requested that Australia help it with genetics and technology instead of supplying live cattle as a solution to its protein needs says a report in The Weekly Times.

Foreign minister Kevin Rudd met with Indonesia's minister of agriculture Suswono in Jakarta last week to discuss Australia's role in Indonesia's transition to self-sufficiency in beef production by 2014.

Suswono proposed the Australian Government invest in breeding stock in the country and providing education and technology to Indonesian farmers instead of sending live animals.

Late last year, Indonesia announced it would slash import quotas for live cattle from 520,000 to 283,000 this year; a larger than expected cut for most in the Australian industry. Early reports out of Jakarta suggest permits for the import of just 50,000 to 60,000 cattle have been issued for the first quarter of this year.

Cash to cut export red tape

Canberra says it is injecting up to $60 million to reduce red tape for agricultural export industries says The Weekly Times. Agriculture Minister Joe Ludwig said changes to AQIS export certification would deliver better outcomes for exporters.

The announcement came just one day after The Weekly Times reported horticultural exporters were losing markets because AQIS refused to inspect produce at less than three days' notice.

"Changes to the meat program will reduce the regulatory cost of export certification by $27 million per annum and are being supported by $25.8 million in transitional assistance," Ludwig said.

Meat processors are the biggest winners under today's funding announcement with up to $27.4 million a year in efficiencies being delivered and $25.8 million in transitional assistance.

China beefs up on Aussie cuisine

CHINA has overtaken Japan as the No. 1 market for Australian produce, as living standards rise and demand lifts in the booming economy there according to a report in The Weekly Times.

The paper says that Chinese consumers accounted for twice as much Australian beef and lamb last year, wine exports continued to soar and sales of dairy and grain are also growing strongly.

The market also became the third-largest destination for Australian wine, with sales rising to $201.5 million in 2011, behind only the US and UK. Wine sales to China and Hong Kong helped to prevent a larger decline in wine exports.

The surge in meat sales to China included beef worth $52 million, while lamb jumped to $76 million and mutton reached a record $26 million. MLA chief economist Tim McRae said meat sales would continue to grow because of rising incomes and changing consumption patterns but the industry would need to fight for market share.

Rewards for care of bulls

HOW a bull is treated in the first year of joining will influence its performance for the rest of its life. And it's why Victorian DPI's Maria Crawford has told The Weekly Times producers should manage any new sire carefully.

Crawford, who is based in Hamilton, said the investment in a bull was not only financial. "The financial investment, along with the contribution the bull will make to the herd's genetic improvement if bought well, is significant," she said.

"Management of the bull in its first working season will set it up for many productive years to come." Crawford said producers could do several things to make the most of any new sires.

"Ensure new bulls are transported home appropriately, including separating bulls bought from different vendors," she said. Also, bulls should be unloaded into yards that already held a small number of other cattle, but not other bulls.

Cattle numbers up - and climbing

In its most recent analysis, the Australian Bureau for Agricultural Resource Economics and Sciences predicted the nation's cattle herd would reach a 34-year-high in 2011-12 of 30.2 million says The Weekly Times.

ABARES said herd rebuilding would continue as producers retained breeding stock.

But years of drought and downsizing of herds take time to turn around. What hasn't is the increasing number of young female cattle going into feedlots.

Producers will be looking out for good genetics to get the best results from the females they are joining. Landmark southeast region stud stock manager Ray Atwell said there was "no reason" to think this year's bulls sales wouldn't be as good as the levels set last year.

"The demand for good-quality bulls will be there," he said. "Commercial producers will be selective in what they choose but the country is still a long way off being stocked to capacity."

Cargill earnings worst in 10 years

After posting its best quarterly earnings in its fiscal 2011 second quarter last year, The Land says Cargill recorded its worst quarterly earnings in more than 10 years in its fiscal 2012 second quarter this year.

The paper said that in an announcement Cargill reported that its earnings fell 88 per cent to $100 million in its second quarter ended November 30, 2011, from $832 million the year before.

The company said its results were due more to political questions related to possible economic collapse in Europe than to market fundamentals. It also cited higher costs for its meat operations, "poor" sugar performance and "a number of one-time items".

The quarter "was significantly below expectations," said chair and chief executive officer Greg Page. Still, he said he was optimistic about earnings for the balance of the fiscal year, which ends at the end of May.

Invasive animals roadshow coming to a town near you

INVASIVE animals cost Australia more than a billion dollars annually says The Land. For an update on research and management developments the Invasive Animals CRC is bringing the PestSmart Roadshow to a place near you in 2012.

The PestSmart Roadshow is carried out in conjunction with the Invasive Animals CRC partners Australian Wool Innovation, Meat and Livestock Australia and the Murray-Darling Basin Authority.

It will criss-cross the country with 17 events starting in Queanbeyan on 30 January and ending in Townsville on 1 May 2012. The Roadshow will also showcase the PestSmart Toolkits - a national online collection of invasive species information.

At all times before, between and after these Roadshow dates, the Invasive Animals CRC said it encouraged graziers, farmers, public land managers and others with responsibility to control invasive animals to visit www.feral.org.au/pestsmart.

Wagga butchers cut perfect deal

THE age old adage "if you can't beat 'em, join 'em" is working a treat for Wagga Wagga butchery owners Nathan and Lisa Trinder, who have struck up a unique deal with three supermarkets says The Land.

While the big chains are blamed for squeezing the local butcher out of the production chain, the Trinders have found the perfect deal to sell meat through independently-owned supermarkets well after the doors of their own shop front have closed.

The Trinders purchased Lake Village Butchery in the suburb of Lake Albert, Wagga, eight years ago and have since doubled their weekly throughput of meat by selling their products through three Foodworks supermarkets in suburban Wagga.

Trinder said they developed this concept as they could see a trend towards people using the supermarket as their one-stop shop, especially on hot or wet days. "Our business hours are effectively doubled as we are still selling meat once the store is closed," he said.

Russia, China in roo meat moves

AUSTRALIA's largest kangaroo meat processor says the long awaited resumption of trade with Russia and China could take place within the next six months according to Queensland Country Life.

Beginning as a supplier for the pet food market in the early 1980s, South Australia-based Macro Meats supplies about 100 tonnes of kangaroo meat for human consumption every week to more than 2500 supermarkets across Australia.

Managing director Ray Borda said the Australian Quarantine and Inspection Service (AQIS) would meet with Russian trade officials in Berlin on January 16, where trade resumption was expected to be discussed.

Borda, who also serves as Kangaroo Industry Association of Australia president, said while he expected the Russian Government to again request to inspect major Australian plants before giving trade the green light, he hoped an announcement would be made before the end of the financial year.

Roma sets record heavy feeder cattle price at 260c

A TOTAL of 5361 head of cattle were penned at Queensland's benchmark Roma store cattle sale last week according to a report in the Queensland Country Life and the record books were rewritten.

A large number of restocker buyers were in attendance with livestock producers buying cattle from as far away as Cloncurry in North-West Queensland. Competition with feedlots remained strong and cattle prices continued to be bullish.

Heavy feeder steers in the 400-550kg range topping at 260c and averaging 207c/kg set a new sale record while steers in the 350-400kg range reached 256c/kg and averaged 220c/kg and steers 280-350kg range reached 262c and averaged 236c/kg.

Weaner steers in the 220-280kg range reached 266c/kg and averaged 246c. Weaners under 220kg topped at 259c and averaged 228c. The Handley family, Andromeda Cattle Co, Mungallala, sold 250kg crossbred steers to 266c and averaged 261c/$652.

Farmer shines as wild dog crusader

THE art of hunting wild dogs is well and truly alive in the Bymount region, north of Roma, where landowner, Danny Sutton has destroyed more than 100 wild dogs in the past six months says Queensland Country Life.

Sutton has handed over 97 scalps to the Maranoa Regional Council since the start of July 2011. He also shot several more wild dogs from a helicopter that were not recovered, bringing his total for the past six months to more than 100.

Widely respected for his trapping and shooting abilities, Sutton believes his tally is just the tip of the iceberg. "The dogs are everywhere now and what I've got is just a fraction of what's out there," he said.

"About 75pc of those dogs were shot within a 20km radius of here." Together with his wife Donna, Sutton runs a cattle operation, but heads out to hunt for pups and dogs whenever he has the time.

11 hours, 13,000 head at Wodonga

WODONGA Independent agents yarded more than 5000 head at the annual blue-ribbon weaner sale, rounding off three days of premier northern weaner sales where agents sold 13,000 head in just 11 hours says Stock and Land.

While prices eased in places, the market remained strong for the top end on the last day of the sales, which saw Angus steer weaners sell to $930 a head or 222 cents a kilogram, while grown steers sold to $1075.

The paper says that Spring Lagoon, Burrumbuttock, NSW, topped the steer weaner market with its draft of 98 Angus, 12 months old, which sold to a high of $930 to average $858.

European Union (EU)-accredited cattle were featured at this year's sale, with more than 800 head of EU cattle offered, and for the first time buyers retained the status for both steers and heifers.

Research: fatness can impact on heifer conceptions

Online news service beefcentral.com says selecting for low rib fat as a way of boosting carcase meat yield may be linked to a reduction in maiden heifer conception, research conducted in the Beef CRC Maternal Productivity project indicates.

The project work, led by associate Professor Wayne Pitchford of the University of Adelaide, found selecting for low rib fat EBVs to boost carcase meat yield reduced maiden heifer conception rates by more than 8 per cent.

The finding is important information for cow-calf producers in balancing EBV selection because reproductive rate is critical for enterprise profitability and the efficiency with which beef is produced.

With the development of Breedplan EBVs for a wide range of traits which impact on the profitability of the beef value chain, producers are faced with challenges to implement these tools in a balanced way, to ensure selection is targeted at both pre- and post-farm gate profitability.

Biggest changes to NSW in new BJD management plan

NSW will be the main focus for changes in Australia's Bovine Johne's Disease management plan, due to be enacted from July 1 according to online news service beefcentral.com.

A summit involving a range of stakeholders has been held in Sydney to discuss the future management of BJD, which have now been agreed to nationally. The plan was prepared by the BJD Technical Advisory Group of Animal Health Committee.

Under the revised management plan WA will remain a free zone, Queensland, NT and pastoral SA a protected zone and all NSW and non-pastoral SA will become a beef protected area. Victoria and Tasmania will become a management area.

The main State affected by these changes is NSW where the three small parts of the State which are currently control zones based on their high dairy population are no longer zoned differently to the rest of the State.

MLA UPDATE

Live sheep exports fall 13% during November

Australian live sheep exports declined 13% year-on-year during November, to 165,626 head (Australian Bureau of Statistics), which was also back considerably on the previous month (337,519 head). Contributing to the decline in November was the availability of ships, and while WA remained the largest exporting state, sheep supplies were reportedly still tight across key sourcing regions.

The largest market for Australian live sheep for the month was Kuwait, at 89,008 head (28% lower than last year), followed by 53,000 head to Turkey (up from zero last year) and 15,000 head to Bahrain (70% lower year-on-year). The remainder were exported to the United Arab Emirates, Singapore, Malaysia and New Zealand.

Butchers rate beef, pork as top performers in December

Results from MLA's December butcher survey, carried out by Millward Brown, indicated that 36% of butchers rated beef sales as ‘very good' to ‘excellent' during the month, matched by the performance of pork sales.

While this was a steady performance for beef relative to December 2010, it was a significant improvement for pork. In addition, a further 45% of butchers noted ‘good' beef sales, while 38% reported ‘good' pork sales. The most popular beef cuts during December were steaks; including striploin, T-bone, rump and scotch fillet, with product quality, price and the onset of the barbeque season reportedly the main drivers.

Lamb also recorded a better performance during December than in the previous year, with 30% of butchers reporting ‘very good' to ‘excellent' sales, and another 42% noting ‘good' sales. Loin chops were more popular during December; however reports also indicated that lamb sales continued to be hampered by high prices.

Mixed start to 2012 for livestock markets

The first full selling week of 2012 was somewhat of a mixed bag for prices, particularly when compared to the end of 2011.While young cattle prices remained near all-time highs, prices for export categories averaged lower than the final full selling week of December (17 December). All lamb categories started the year lower.

However, it must be stated that the first full week of trading can often by marked by an absence of buyers, while producers can be keen to market stock after the lack of selling opportunities over the Christmas and New Year break. For 2012, both appear to be applicable, with cattle yardings up 22% on the corresponding week last year, and lamb offerings jumping 15%. While much of the year-on-year national increase in cattle numbers for the past week was in Queensland, it must also be remembered that yardings during the first full selling week of 2010 were extremely low, as flooding saw most sales cancelled.

After hitting an all-time high of 428¢/kg cwt in the final few selling days of 2011, the EYCI opened 2012 on Monday at 419.25¢/kg cwt - slipping to 412.75¢/kg cwt by Friday. Demand for young cattle remains very strong, with the results from the opening weaner sales of the year well received by most sellers.

Heavy steers averaged 349¢/kg cwt for the week, cheaper than the end of 2011, and equal with the corresponding week in 2010. Nationally cows averaged 307¢/kg cwt for the week, with direct to works prices at 295¢/kg cwt.

Lamb prices started 2012 cheaper, with prices back across all categories, albeit just barely for restocker and feeder lambs. Higher lamb offerings in NSW, Victoria and SA reportedly contributed to the lower start to the year, with the hot weather throughout early January possibly inducing increased turnoff. Nationally, trade lambs finished the week at 494¢/kg cwt, while heavy and light lambs averaged 477¢/kg cwt and 499¢/kg cwt, respectively.

Less impacted by the summer break, the national average for restocker and feeder lamb prices only started the year down 1¢ on the finish of 2011, averaging 542¢/kg cwt. Producers are reported to be chasing additional lambs for finishing, keen to make the most of an abundant supply of feed grain and pasture.

As market activity increases in coming weeks, a clearer state of play for both cattle and lamb markets should become evident.

Record Aussie beef exports to South Asia in 2011

Australian beef and veal exports to South East Asia and Greater China reached a record high in 2011, surpassing the previous high from 2010. According to the Department of Agriculture, Fisheries and Forestry (DAFF), Australian exports to the region totalled 141,972 tonnes swt - 7% higher year-on-year and 46% above the five-year average.

The overall jump in shipments for the past year was driven by improvements to almost all markets, with the exception of Indonesia, which fell 18% year-on-year, to 39,590 tonnes swt. While this was still the third highest calendar year total to Indonesia on record, and Australia's largest single destination for the region in 2011, exports were disrupted early in the year with import permit issues.

While the only other market besides Indonesia not to register a record high for 2011 was the Philippines, Australian shipments did increase 9% year-on-year, to 20,998 tonnes swt.

Taiwan proved to be a stand out export destination for 2011, with shipments increasing 19% year-on-year, to 36,746 tonnes swt. Shipments to Taiwan were boosted by the gradual shift in focus to Australian beef in modern retail outlets, an expanding fast food sector and a fall in shipments from the US.

Exports to Malaysia (14,436 tonnes swt), Singapore (9,659 tonnes swt), Hong Kong (8,870 tonnes swt), China (7,754 tonnes swt) and Vietnam (1,430 tonnes swt) all rose significantly in 2011, rising 23%, 27%, 26%, 38% and 46% year-on-year, respectively. Strong demand from a growing foodservice sector and reduced competition from other countries, such as Brazil and Uruguay assisted demand for Australian product.

The record beef and veal exports for 2011 were helped by a 5% year-on-year rise in shipments for December, to 12,576 tonnes swt. Exports to Taiwan (4,117 tonnes swt), Malaysia (1,292 tonnes swt) Singapore (1,008 tonnes swt), China (635 tonnes swt) and Vietnam (302 tonnes swt) all increased for the month, with declines to Indonesia (2,679 tonnes swt), the Philippines (1,623 tonnes swt) and Hong Kong (755 tonnes swt).

Korean farmers struggle with falling prices, higher costs

Korean cattle farmers have been hit by falling cattle prices, largely due to an increased supply of domestic beef, while soaring animal feed prices have pushed up production costs.

Hanwoo (local beef) cattle herd numbers were almost 1.5 million in 2004, but rose to just above three million head last year, along a steady decline in prices at the farm gate. While the average price for a 600-kilogram cow during 2004 was around KRW5.2 million per head (A$6,188), that price dropped to an average of KRW3.4 million (A$3,314) last year (Nonghyup). On top of this trend, Korea struggled with foot-and-mouth disease early last year, which impacted local beef consumption.

However, Korean consumers have not enjoyed these price falls, which is largely attributed to Korea's complex distribution network, which reportedly makes up approximately 40% of retail beef prices and involves a minimum of five stages (JoongAng Daily).

An official at the Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) stated that the increased supply of beef could continue for another four to five years (Dong-A Ilbo). To assist farmers, the Korean government announced it will increase slaughter levels and compensate farmers. Korea's MIFAFF also reported it would increase the supply of local beef to the military, while some discount retailers said they would increase in-store promotions to help drive consumption.

Beef exports finish 2011 higher

Despite 2011 being a year marked by unprecedented events in key beef export markets, Australia's beef and veal shipments increased 3% for the year, totalling 949,195 tonnes swt (Department of Agriculture, Forestry and Fisheries (DAFF)).

Surpassing the 922,833 tonnes swt registered for the full 2010 calendar year, and falling just short of shipments in 2006 and 2008, Australia's beef and veal shipments finished the year at a rapid pace. November's shipments were the highest in three years, while the year concluded with a record December volume of 82,054 tonnes swt.

For Australian beef exports in 2011 to have exceeded 2010 levels by 3% reflected the very strong underlying global demand for Australian beef, considering the issues faced for exporters throughout the year. An A$ averaging 103US¢, and hitting 110US¢ twice throughout the year, created a significant headwind for Australian exporters, while the ongoing global economic turmoil created demand concerns in many advanced beef markets.

For Australia's largest beef export market, Japan, the natural disasters in March devastated the economy, impacting demand for Australian beef for the remainder of the year. For 2011, Australia's beef exports to Japan totalled 342,189 tonnes swt - down 4% on the previous year. Additionally, Australian product faced increased competition from US beef in the Japanese market, as the strong A$ contrasted with the very weak US currency. However, despite all of these issues, Japan remains Australia's largest beef export market by a large distance, taking 36% of all beef exports for the year, and more than double the next largest market (the US).

Australian beef and veal exports to the US in 2011 totalled 167,820 tonnes swt - down 9% on the previous year and the lowest calendar year volume for several decades. In contrast, the Korean market expanded again in 2011, rising 18% on 2010, to 146,347 tonnes swt - falling just short of the record 149,663 tonnes swt shipped in 2006.

Undoubtedly, the stars of the 2011 export year were the smaller, non-traditional markets, which offset (or even contributed to) the lower volumes to Japan and the US. Russia, the Middle East and South East Asia were the main contributors to the increase in total exports for the year, with rises also witnessed to more traditional markets of the EU and Canada. 

Traditionally dominated by the big two markets of Japan and the US, Australian beef exports to all "other" markets (including Korea) increased 15% year-on-year, offsetting a 6% decline to Japan and the US combined.

Beef exports to Japan back 4% in 2011

Australia sent 30,202 tonnes swt of beef to Japan in December 2011, taking the annual total to 342,186 tonnes, down 4% from 2011 (Department of Agriculture, Fisheries and Forestry).

The 2011 volume was the lowest since 2003, impacted by the high A$, increasing imports of US beef into Japan (on the back of the weak US$), and tighter supplies of Australian beef. Growing demand for Australian beef from emerging international markets also challenged Japanese buyers to secure more products, particularly frozen and manufacturing beef items.

Yet, the Japanese market remained the largest export destination for Australian beef in 2011, accounting for 36% of total shipments, despite the devastating March earthquake and prolonged stagnation in the economy.

2011 goat meat exports fall just shy of record

Australian goat meat exports during 2011 totalled 25,892 tonnes swt, falling just 19 tonnes short of the record 2010 volume. In what was a turbulent year for all Australian export markets, the high $A was the main impediment to trade, with shipments slowing towards the end of the year.

After a strong start to 2011, goat prices decreased from August onwards, largely the result of subdued demand from the US. Despite this, the US remained the largest destination for Australian goat meat in 2011, reaching 15,163 tonnes swt, making up nearly 60% of total shipments. Exports to the Caribbean were also up 2% for the year, to 2,954 tonnes swt, while shipments to Taiwan fell 2%, to 3,910 tonnes swt.  

December 2011 goat meat exports fell 9% year-on-year, to 951 tonnes swt, primarily due to a 6% decline in shipments to the US. Exports to the Caribbean fell 9%, while Australian goatmeat exports to Taiwan remained relatively steady.

Cattle market alert

Cattle throughput builds

Physical markets in every state returned to normal trading after the Holiday break, and the early supply signs were positive. Despite a degree of uncertainty surrounding where market forces would establish prices, producers were keen to muster cattle after a few weeks off. Throughput in NSW markets was strong, with good numbers in the Hunter Valley and Northern markets. Queensland consignments were mixed, although there was 5,300 head at Roma. Victorian numbers also began strongly while both SA and WA supplies were limited.

 Quality still excellent

Quality has not deteriorated over the Christmas break, as many agricultural regions benefited from further rainfall. This has ensured most young and grown cattle remained in forward condition, whilst also encouraging restocker orders. It is also the time of year where store cattle are widely available at the weaner sales and quality has been excellent.

 Prices begin strongly

The cattle market has eased slightly in relation to the conclusion of 2011, although prices remain higher year-on-year. The Eastern Young Cattle Indicator (EYCI) opened strongly, settling on 415.25¢/kg cwt or 3% higher year-on-year. Feeder and restocker demand has been prominent in the early stages, while export processors are taking a wait and see approach as the markets unfold.

Australian lamb exports jump 3%

Australian lamb exports reported a 3% increase during 2011, compared with 2010, to 160,007 tonnes swt (Department of Agriculture, Fisheries and Forestry) - the third largest calendar year total on record (behind 2009 and 2007). The increase for 2011 occurred despite a fall in lamb production over the same period, as strong overseas demand, with tight global supplies (particularly out of New Zealand - NZ) attracted a higher proportion of Australian lamb.

The largest export market for Australian lamb in 2011 was the Middle East, despite a 5% decline year-on-year, to 34,987 tonnes swt. The Middle East just pipped the US, which saw a 1% increase, to 34,334 tonnes swt. It should be noted however, that the US was the highest value export market for 2011, with a larger proportion of higher end chilled cuts than the Middle East.

Greater China experienced significant growth during 2011, with Australian lamb exports up 15% year-on-year, to 29,620 tonnes swt. This is a region identified by both Australia and NZ as a key growth market for lamb (and mutton), and with disruptions to NZ supplies during late 2010 and 2011, Australian lamb filled the demand in Greater China.

A similar pattern occurred with the EU, to which Australian lamb exports lifted 8% year-on-year, to 12,356 tonnes swt. The limitation on exporting lamb to this market, set by a tariff rate quota (of 18,786 tonnes carcase weight equivalent - cwe), remains an issue for Australian exporters, particularly when compared with the NZ quota of 227,854 tonnes cwe.

Of the smaller markets, Australian lamb exports grew 12% year-on-year to Papua New Guinea, to 10,212 tonnes swt, and 4% to South East Asia, to 9,585 tonnes swt while shipments to Japan fell 4%, to 7,381 tonnes swt.

Indonesia's ‘empty' threat to cut live imports

MOVES by Indonesia to slash its reliance on the live cattle trade from Australia to prop up the nation's growing demand for red meat will never see the light of the day according to a report in The Weekly Times.

Senior cattle industry figures say the publicity given to the Indonesian announcement to almost halve live exports to 280,000 head was difficult to understand given Indonesia can never hope to feed its growing population with home-grown beef.

Industry leaders are at a loss to say if the Indonesian announcement was just hopeful, or sabre rattling in the wake of perceived insults when Canberra shut down the live cattle trade after images of mistreatment in its abattoirs were aired on the ABC.

The consensus is Indonesia is almost totally reliant on the Australian product and it couldn't import cattle live on boats from either South or North America because of the huge distances and exorbitant transport costs from those countries.

Watch out for parasites

WET summer conditions should have producers on the lookout for parasite attack says The Weekly Times, with levels of worms in sheep and cattle, and pink eye in cattle are expected to increase after warm days and widespread rain.

Already the Department of Primary Industries has issued a warning about Barber's Pole worm. But other worms could also be on the rise thanks to the wet summer. DPI district veterinary officer Jeff Cave said the first sign of big infestations of Barber's Pole could see big death rates in a short time.

And the fact that female worms could lay up to 10,000 eggs a day meant pastures could quickly become a source of infestation for sheep. "Barber's Pole worm larvae are eaten by sheep during grazing," Dr Cave said.

Coopers veterinary technical adviser Dr Damian O'Brien said beef and dairy producers should be prepared. "Given the recent weather conditions, an increase in flies is highly likely, and we know flies play an important role in transferring disease-causing bacteria from infected to non-infected stock," Dr O'Brien said.

Russian to stay viable

THE New Year will cause a headache for stock agents selling export cattle and sheep - and not because of too much celebrating - according to a report in The Weekly Times.

A new rule has been rushed in by industry body Safemeat to protect export access to the Russian market after beef from Australia was detected with a drug residue level above that country's accepted tolerance last year.

Safemeat has decreed that, from January 1, producers must declare if their cattle and sheep are eligible for the Russian market by writing "Russian Eligible" on their National Vendor Declaration forms.

It is a similar situation to the declaration farmers make for Saudi Arabia and animals which have never consumed meat meal, which still causes problems at saleyards due to producers not understanding or forgetting to write "Saudi Eligible" on NVD forms.

But this Russian requirement has more serious repercussions because Russia is now one of Australia's key markets for grinding beef, and while the Saudi Eligible declaration is essentially a toothless-tiger the current situation for Russia is different because it refers to the use of veterinary drugs with residues which can be tested.

Battle for best beef carcase

A COMPETITION designed to find the best beef carcase in Australia is now under way according to a report in The Weekly Times.

The paper says that the competition, being run as part of Beef Australia 2012, will allow producers to deliver carcases to nominated abattoirs across Australia until the end of March.

For more information, including entry forms and judging criteria, visit beefaustralia.com.au

Fine for false wool claim

A GOLD Coast company has been fined by the ACCC for falsely claiming its bedding products were made from 100 per cent wool according to a report in The Weekly Times.

Australian Competition and Consumer Commission chairman Rod Sims said such misrepresentations undermined consumer confidence and warrant action.

The paper says that the company was dealt a $6600 infringement notice after it allegedly used a polyester mix in products carrying the official Woolmark logo and 100 per cent wool claims.

The case follows a similar instance in July last year when online trader, Marksun Australia Pty Ltd, was fined $430,000 by the ACCC for false and misleading conduct after advertising Chinese-made ugg boots as Australian-made.

Wagga yards add service

PRODUCERS can now have their sheep and cattle drenched and vaccinated before they leave the saleyards in an innovative program just introduced according to a report in The Weekly Times.

The Wagga Wagga Livestock Marketing Centre has permitted a private contractor to offer animal husbandry services, such as drenching and vaccination. It's believed it is the only major set of saleyards in southeast Australia to offer the service.

And though the cost may discourage some - $3 for sheep and lambs, and $8 for cattle - the paper says that others are saying there are still benefits to be found in the program.

The service has been pitched at small-scale farmers who may be without yards or stock-handling facilities, but centre manager Paul Martin said he envisaged bigger operators might also use it.

Summer prices buck trend

HAS the cattle market moved away from its traditional price pattern of premiums in winter and lower returns in summer?

According to a report in The Weekly Times that is the key question posed by the performance of the Eastern Young Cattle Indicator, which for the past two years has recorded its highest price point in December.

The EYCI, a rolling seven-day price average of young cattle (vealers and yearling steers and heifers) sold at 26 major weekly prime markets in Victoria, Queensland and NSW, reached an all-time high of 428c/kg carcase weight at the end of 2011.

While it could be argued the latest spike is artificial - driven by low pre-Christmas cattle numbers and saleyard closures that caused the EYCI to jump 14.5c/kg in the final two days of trading - it is still difficult to overlook the change in price patterns this year and in 2010. This price cycle contrasts with the usual pattern of winter peaks and summer lows.

Pooling the gene expertise

ORGANISERS are now taking registrations for a major international beef genetics conference, which will be staged in Queensland next May according to a report in The Weekly Times.

The conference will be held in conjunction with Beef 2012 at Rockhampton and will feature presentations on the latest beef cattle genetic and genomic research and technology.

Record entries have been received for Victoria's 2012 Beef Week. The event, which runs from January 27 to February 23, has attracted 263 studs and 37 breeds of cattle.

Just 50 studs were open at the first Beef Week 20 years ago.

The paper also reports that the dates for the next Angus Australia Conference have been changed. The conference will now be held on July 3 at Ballarat. A two-day tour of regions surrounding Ballarat will follow, starting July 4.

Farm lending rates double RBA average

WITH few big agribusiness lenders making any attempt to follow the Reserve Bank of Australia's (RBA) interest rate cut last month, average farm lending costs are now more than double the RBA's overnight cash rate says Rural Press.

The National Farmers Federation's (NFF) December Agribusiness Loan Monitor puts average rural overdraft interest rates at about 9 per cent, compared to the RBA's 4.25pc interest rate.

Average agribusiness term loan and residential secured business loan rates are about 8.5pc according to the NFF's research in partnership with Canstar money monitoring specialist, Canstar.

Suncorp Agribusiness has won recognition from the NFF as the only financial institution to cut its farm lending rates in line with the RBA's full 0.5pc drop in the last months of 2011.

India's beef export growth

INDIA is on track to become the world's third biggest beef exporter, behind Australia and Brazil, and just ahead of the United States according to a national Rural Press report.

With the momentum of several years of rapid growth, Indian beef and veal exports are forecast to increase 16 per cent in 2012, to 1.275 million tonnes, according to the US Department of Agriculture (USDA).

The USDA reports India's cattle herd in 2012 is expected to reach a massive 324.3 million head - which is a long way ahead of the next largest nation, Brazil, with its 197.3m head.

India's massive cattle herd is primarily due to the sacred role cattle have in the Hindu religion. Much of the production of beef in India is from the large buffalo herd (carabeef), which provides a very lean source of protein.

Exporters unable to plan cattle shipments

ONE OF Australia's largest exporters of live cattle says uncertainty about the issuing of import permits by Indonesia is hampering planning. The Land says exporters greeted the New Year without knowing how many import permits would be issued for the first quarter of the year.

Some permits had been issued last week and Elders International, which accounts for about 30 per cent of the trade in live cattle to Indonesia, expects to ship about 9250 cattle to the country in the next week.

But the company's group general manager for trading, Tony Dage, expressed concern about a shortage of timely information on how many cattle Indonesia would be importing.

''What is critically important is that our Indonesian importer customers receive early and certain notification of their permit allocations, so they can then place the order on us as the exporter quickly, and we can plan across our supply chains,'' he said.

Avoiding heat stress in cattle herds

HEAT stress in cattle can become a major issue both for animal production levels and animal welfare according to a report in The Land.

Department of Primary Industries (DPI) District Veterinary Officer Jeff Cave said the ideal temperature range for cattle was between 5C and 25C, but as the temperature rises, it becomes more difficult for cattle to cool themselves.

"At temperatures above 27C, cattle have to redirect energy away from production to help cool them; this is done via heat loss through their skin and lungs," Cave says. "Feed intake is also reduced and, as the temperature rises above 32C."

Humidity can also play a significant role in heat stress and for any given temperature, the degree of heat stress increases as the relative humidity increases. The lethal range for cattle is 38C and a humidity of 80 pc.

Australia should say sorry for Indonesia stunt

INDONESIA's decision to cut live cattle imports from Australia is the clearest example yet of the significant and long-lasting damage that June's export ban did to relations with our nearest neighbour says a Rural Press report.

Rarely in history, Clive Phillips, Professor, School Of Animal Welfare And Ethics, University of Queensland says, has there been an example of two neighbouring countries being so diametrically opposed in so many ways culture, geography, socioeconomic status, religion and population density.

"We may therefore expect some difficulties when dealing with trade between the two countries in such a sensitive commodity as live cattle. However, the affront to Indonesian pride by Australia's ban has set back the trust between the two countries a long way," he says.

"To act in this way with our closest neighbour, one of the world's major trading nations since the seventh century, was disrespectful. It provided the perfect incentive for Indonesian authorities to reaffirm their intention to become self-sufficient in beef production, an aspiration they have held for at least 30 years."

Rabbit numbers set to rocket: DPI

THE Department of Primary Industries (DPI) has warned of a rapid increase in rabbit numbers across Victoria this summer - and landholders need to act now - according to a report in Stock and Land.

DPI biosecurity manager for established invasive animals John Matthews said data indicates numbers are starting to rise from a 15-year low. "Initial analysis of the 2011 spring program indicates increases in population and active warrens," he says.

"Recent high rainfall and strong pasture growth will also improve survival and extend the breeding season." DPI rabbit monitoring, at 17 sites across Victoria since 1998, provides nationally significant data.

 "It appears a higher proportion of rabbits have antibodies to the biological control agent RHDV, released in 1995-96," said Mr Matthews. "This is evident across all sites with around half the kittens, 70 pc of young adults and 80 pc of older adult rabbits moving into the next breeding cycle, having antibodies to RHDV."

Beef's eight big challenges for 2012

By any measure, the stage is set for a big year for beef in 2012 according to online news service beefcentral.com.

Young cattle prices are at historic highs, market rates for all categories stand above year earlier levels, and grass is in abundance across many areas after Australia recorded its third-wettest year on record.

Beef Central spoke to Cattle Council of Australia president Andrew Ogilvie about the key challenges ahead.

1. Structural reform

After conducting a think-tank with its various issues-based taskforces just before to Christmas, Cattle Council of Australia has developed a structural reform paper that will be circulated to all beef industry members for consultation early this year.

2. Live export

Cattle Council was optimistic that Indonesia will require more cattle than it is has indicated. However the industry's primary focus at this point, he said, was to ensure supply chain assurance programs were operating effectively and were successfully rolled out in all export markets according to the Federal Government's staggered deadlines for this year.

3. Domestic market

Australia's biggest single beef market is domestic, which accounted for around 44 pc of sales by volume in 2010-11. Ogilvie said Cattle Council had been pushing MLA considerably in recent years to deliver an enhanced domestic beef marketing campaign.

4. Exports

The movement of the Australian dollar relative to its US counterpart is likely to have a significant bearing over the fortunes of Australian beef prices in 2012.

5. R&D

Ogilvie said in addition to pushing for increased adoption rates of ongoing work, CCA's R&D taskforce was eager to increase attention on ‘blue-sky research' in 2012.

6. Carbon

Cattle Council says it is taking "a fairly conservative view" on the question of whether the Gillard Government's Carbon Farming Initiative will provide any tangible benefits to beef producers.

However Cattle Council's environmental taskforce was analysing the issue and also working with MLA on the development of potential methodologies to create income-earning opportunities for cattle producers through carbon storing or saving activities.

7. Market access

Ogilvie said Australia's engagement with beef industry leaders from the US, Canada, Mexico and New Zealand in the Five Nations Beef Alliance was proving to be an increasingly important initiative in dealing with the global challenges facing the industry.

8. Matthews Report on FMD preparedness

The Matthews Report on Australia's biosecurity response capacities last year uncovered some alarming gaps in Australia's preparedness to handle a major livestock disease incursion.

Given past experience with FMD outbreaks in other countries, particularly Britain in the early 1990s, an outbreak here would have devastating consequences for Australia's $10b a year beef industry.

Looking ahead

Keeping a lid on ever-increasing costs remained a key challenge, particularly given cattle replacement costs this year, Ogilvie said.

However the strength of Australian beef prices in defiance of the strong Australian dollar provided good reason for optimism.

"There is a global shortage of beef, and that is being reflected in the strong demand back through the markets, even with the strength of the dollar," he said.

Cattle temperament affects productivity

Online news service beefcentral.com says temperament - and how best to measure it - is sometimes misunderstood in the cattle sector according to Rockhampton-based animal behaviourist, Carol Petherick, of the University of Queensland.

Carol defined temperament as an animal's individual personality or character that determined how it responded to a range of situations and environments, such as risks, threats, novelty, other animals and humans.

She says temperament includes innate (genetic) and environmental (learned and experienced) aspects that make animals different from each other. "It's an important trait to monitor and use in breeding selection, as it affects how cattle react to interaction with people during mustering, handling and yarding," she says.

"This is important from an occupational health and safety perspective, and for grazing and feedlot performance," she says.

MLA UPDATE

US cattle on feed reaches four year high

The latest United States Department of Agriculture (USDA) Cattle on Feed Report (16 December) showed that the number of cattle on feed in US feedlots (exceeding 1,000 head) totalled 12.1 million head as at 1 December 2011- the highest inventory since January 2007. The December number was 4% above the same period in 2010 and the second highest December result since the USDA commenced the series in 1996.

Largely contributing to the rise in the US cattle on feed at the start of December was a 4% increase in placements during November, to 2.04 million head. In contrast, marketings remained unchanged on year ago level, at 1.77 million head. The number of cattle on feed in the US has been rising since August, with drought conditions across the southern US states forcing more cattle into feedlots.

The increased cattle placement during November was largely due to a significantly higher proportion of younger and lighter cattle entering feedlots, with 37% weighing less than 600 pounds, compared to 32% for the same period in 2010. The majority of the lightest cattle came from Texas, the state worst affected by the drought conditions.

However, it should also be noted that there was an increase registered in the placement of cattle exceeding 800 pounds, largely due to the better season being experienced across some of the northern states, especially in Nebraska.

Global grain supplies to increase in 2011-12

Global grain supplies in 2011-12 have been revised up by 0.6% from previous month's estimate, according to the United States Department of Agriculture (USDA, 9 December 2011). Total production for the current year is expected to reach 2.8 billion tonnes, up 2.5% year-on-year, with increased supplies forecast for wheat, coarse grain and rice.

According to the USDA, the worldwide production of coarse grains (includes corn, barley, oats and sorghum) in 2011-12, which accounts for 50% of global feed grain production, is forecast to increase 4.3%, to 1.15 billion tonnes. The increased estimate for coarse grain production was largely due to higher output from China, forecast to reach 198.1 million tonnes. For the US, coarse grain production is expected to decline 2.1% on year ago level, to 323.26 million tonnes, with reduced estimates for corn, barley and oats. However, despite the lower production, US season-average farm prices for corn, sorghum and barley have also been revised lower, to $5.90-$6.90/bushel, $5.70-6.70/bushel and $5.20-5.80/bushel, respectively. 

Global coarse grain usage for feed in 2011-12 is forecast to increase 2.5% year-on-year, to 662.91 million tonnes, underpinned by higher usage in China (8.1%), Brazil (5.5%), Russia (74%), Australia (8.9%), Japan (4.6%), Mexico (3%) and Argentina (6.1%). In contrast, coarse grain usage for feed is expected to decrease in the US (5.1%), Canada (3.7%) and EU27 (4.1%).

World wheat production in 2011-12 is expected to increase 5.7% on the previous year, to a record 688.97 million tonnes, with higher output in major exporting countries, including Australia, Canada and Europe.

Beef exports to finish 2011 higher

Despite 2011 being a year marked by unprecedented events in key beef export markets, Australia's beef and veal shipments have already exceeded 2010's total. According to the latest Department of Agriculture, Forestry and Fisheries (DAFF) export figures for December (as at 19 December), 56,192 tonnes of beef has been shipped so far in the month, taking total exports for 2011 to 923,333 tonnes swt - surpassing the 922,833 tonnes swt registered for the full 2010 calendar year.

With 12 days still remaining in the export year, Australian shipments are expected to surpass 940,000 tonnes swt - however volumes do slow considerably post-Christmas due to holiday closures.  At over 940,000 tonnes swt, this would be the largest calendar year total for the past three years, and the fifth highest on record. The record calendar year shipments were set in 2008, at 957,482 tonnes swt.

For Australian beef exports in 2011 to have exceeded 2010 levels by 2-3% has reflected the very strong underlying global demand for Australian beef, considering the issues faced for exporters throughout the year. An A$ averaging 103US¢, and hitting 110US¢ twice throughout the year, created a significant headwind for Australian exporters, while the ongoing global economic turmoil created demand concerns in many advanced beef markets.

For Australia's largest beef export market, Japan, the natural disasters in March devastated the economy, impacting demand for Australian beef for the remainder of the year. Additionally, Australian product faced increased competition from US beef in the Japanese market, as the strong A$ contrasted with the very weak US currency. However, despite all of these issues, Japan remains Australia's largest beef export market by a large distance, taking 36% of all beef exports for the year, and more than double the next largest market (the US).

Undoubtedly, the stars of the 2011 export year were the smaller, non-traditional markets, which offset (or even contributed to) the lower volumes to Japan and the US. Russia, the Middle East and South East Asia were the main contributors to the increase in total exports for the year, with rises also witnessed to more traditional markets of the EU and Canada.  However, it should also be noted that exports to Korea increased in 2011.

Traditionally dominated by the big three markets of Japan, the US and Korea, Australian beef exports to all "other" markets increased 17% (January to November) year-on-year, offsetting a 3% decline to the big three combined.

Korean beef imports up 20% in 2011

Korean beef imports totalled 23,533 tonnes swt during November, taking the total for the first 11 months of 2011 to 283,103 tonnes swt (KITA) - up 20% year-on-year. For the same period in 2003 (prior to the US BSE outbreak and subsequent Korean import ban) Korean beef imports totalled 301,459 tonnes swt.

Of the 47,484 tonnes swt increase in Korean beef imports for 2011, 66% of the additional volume has been US beef, with 31% Australian beef and 3% New Zealand product. US beef (mostly frozen) has made a solid return to the market since re-entry in the Korean beef market in July 2008. While Korea imported a monthly average of 4,803 (91% frozen) tonnes swt of US beef from January to November in 2009, average monthly imports for 2011 have  totalled 9,678 (92% frozen) tonnes swt during the same period this year.

Australian beef continues to maintain the largest imported market share at 49%, while the US, New Zealand and Mexico hold a 38%, 11% and 2% share, respectively.

EYCI hits all time high

The benchmark young cattle indicator for the Australian eastern states cattle markets, the EYCI, hit an all-time high today, at 428¢/kg cwt - surpassing the previous high of 424.25¢/kg cwt set earlier this year (March 28).

After finishing last Friday at 413.5¢/kg cwt, the EYCI jumped 14.5¢, or 3.5% during the past two days, fuelled by very strong demand for a limited supply of suitable cattle. While the EYCI has tracked well above year ago levels throughout December, the kick in the past two days has been largely due to very strong demand from all buying sectors.

Recent widespread rain has sustained buying demand from restockers and feeders, keen to secure cattle over the summer months. Additionally, demand from processors has been notably higher in recent days, with buyers willing to purchase any suitable cattle to be processed before the annual holiday closures.

Interestingly, the Casino (northern NSW) market, held on Monday, was the main contributor to the jump in the EYCI, while higher prices have also been recorded at all three NSW markets held on Tuesday. Additionally, prices averaged higher at Warwick today, no doubt influenced by no Roma sale being held.

Collected by MLA's National Livestock Reporting Service (NLRS), the EYCI is a seven calendar day rolling weighted average of 24 young cattle types from 26 prime saleyards in Queensland, New South Wales and Victoria. Cattle included are vealer and yearling heifers and steers, C2 or C3, with live weight greater than 200kg. Cattle included in the EYCI can be purchased by all sectors of the cattle trade, including feeders, restockers and processors.

Korea prepares for Lunar Year demand

Trading activity in the Korean wholesale market for beef continued its slow pace this week, similar to previous weeks, with Australian beef exporters reporting on reserved buying from Korean importers. Some Australian beef packing companies will only have limited supplies available in the next few weeks, as they prepare to shut down over the holiday period. However, most of the beef stocks needed to supply the market to pre-empt Lunar Year demand (ahead of celebrations on 23 January 2012) have reportedly already been secured.

Australian beef export volumes from 1-12 December this year accumulated to 5,045 tonnes swt (chilled beef making up 25%) with volumes for the 2011 calendar tipped to total 145,000 tonnes swt - only about 5,000 tonnes less than the record set in 2006.

Prices finish 2011 on a positive note

National cattle and lamb prices have finished 2011 on a strong note, with wet conditions and tight supplies continuing to underpin the market heading into the Christmas break for the second consecutive year.

The EYCI finished Thursday at a December record of 413.75¢/kg cwt, while the run of increased lamb offerings in Victoria has again failed to restrain prices, with the national trade lamb indicator averaging 521¢/kg cwt for the week.

Cattle, lamb and mutton prices averaged higher across all major saleyard categories for 2011, with the above average seasonal conditions keeping turnoff rates constrained and producers firmly entrenched in rebuilding mode. Prices across all of MLA's National Livestock Reporting Service major categories set calendar year records (in nominal terms), with cattle averaging 6-12% higher year-on-year, while lamb prices averaged 8-16% higher.

However, while a calendar year average of cattle prices for 2011 paints a relatively positive picture for producers, it also fails to recognise that 2011 was a year that saw the industry face a series of unprecedented events. An A$ averaging 103US¢, very tough conditions in Japan following the natural disasters, the global economic wobbles and the live export ban all cast major shadows over the cattle market throughout the year. Indeed, most of these factors, and their impact upon markets, will be carried into 2012, and possibly beyond.

However, despite some major shocks to the system throughout 2011, the past year has seen both beef and lamb exports increase, even with constrained production. Globally, the demand for Australian red meat into 2012 is expected to remain strong, with beef shipments continuing to grow into non-traditional markets and lamb receiving the benefits of low global supply.

Indonesian beef exports halved

AUSTRALIAN beef exports to Indonesia will be cut by almost half next year.  The Weekly Times says Indonesian Agriculture Minister Suswono has confirmed his country is moving towards having a self-sufficient beef industry.

The paper says that as part of that commitment it means that next year Indonesia will only allow about 280,000 Australian cows to be brought into the country, down from 520,000 permits in 2011.

Australian Federal Agriculture Minister Joe Ludwig said this policy had been in place since 2010 and Australia could be involved in the Indonesian beef market if it bred cows in Indonesia.

Australian Live Exporters Council chief executive Lach McKinnon said any cut to exports will be a blow for northern Australia's cattle industry. "It'll put us under a lot of pressure and we'll have to work very hard to get through this," McKinnon says.

‘Arrogant' attitude will kill off markets

A report in The Weekly Times says that the Australian Government must mend - and nurture - relations with Indonesia or we will have to face losing more agri-business, according to farmers.

"Politically, we've seriously burnt a lot of our bridges and there needs to be a real bridge building process between Australian and the Indonesia Government," WA Farmers Federation president Mike Norton told PerthNow.

He said WA farmers would be "absolutely devastated" by the news the Indonesian Government would follow through with its decision to become self sufficient and cut back its reliance on WA beef.

"It's just a headache that they didn't need because we frantically now have to look for other markets," Norton said. Cattle Council of Australia chief executive David Inall also said the change was "deeper and sooner than we expected".

Quota blow for Top End beef farmers

KIMBERLEY, WA-based pastoralist Vicki Burton says she is used to adversity but she expects it from Mother Nature, not from politicians according to a report in The Weekly Times.

As a blame game erupted over the latest setback to Australia's $1 billion live cattle trade, Mrs Burton and her husband Jack said the series of blows to the region's livelihood had been as devastating as a natural disaster.

The couple, who weathered the mid-year month-long ban on live cattle exports to Indonesia, have won approval for a boutique abattoir on their station, Kilto, near Broome, to reduce their reliance on trading stock to our biggest neighbour.

The Burtons blame the cut on Agriculture Minister Joe Ludwig's decision to suspend the cattle trade for a month in June in the wake of the ABC TV Four Corners expose of the inhumane treatment of Australian cattle.

Northern abattoir probe urgent says Bligh

QUEENSLAND Premier Anna Bligh said Indonesia's decision to cut cattle imports makes the investigation of a northern abattoir more urgent according to a report in The Weekly Times.

As part of its plans to have a more self-sufficient beef industry, Indonesia's announced it will cut imports of Australian cattle by almost half, to 280,000 head next year.

A government taskforce, set up after the ban on live exports to Indonesia earlier this year, is looking at building a new abattoir near Mt Isa. Bligh said the government's almost finished the first stage of a feasibility study and will also be pushing the federal government on the issue as well.

She told the paper that it will be a devastating blow for some, especially those who have already suffered through a temporary ban on exports to Indonesia, and last summer's floods.

Naracoorte saleyards stay in council hands

NARACOORTE saleyards are set to remain in local council hands. The Weekly Times says Naracoorte Lucindale Council rejected a bid by Regional Infrastructure and Palisade Investments to lease the Regional Livestock Exchange.

The paper says the saleyards are a focal selling centre in the mid South East area of South Australia and draw thousands of sheep and cattle out of SA and nearby Victorian regions.

The move, which came after extensive consultation by the council, has been welcomed by local stock agents. They say the retention of the saleyards in council hands will mean the local community benefits.

However, the debate around the proposed lease has led the council to commit to extensive upgrades. This will include roofing over the extensive cattle selling pens, a water treatment plant, a new weighbridge and double-deck loading ramps.

Abbott's price claim slammed

OPPOSITION leader Tony Abbott has been criticised by farm groups over claims that Australian food prices had risen 33 per cent in four years according to a report in The Weekly Times.

The paper says that while speaking in Federal parliament on retail pricing issues, Mr Abbott had said: "Since the end of 2007 ... food and groceries are up a whopping 33 per cent."

But a Deloitte report into food price inflation has detailed price rises of only 13.6 per cent - almost a third less than that claimed by Mr Abbott - from December 2007 to July 2010.

And a spokesman for Coles, one of the nation's two major food retailers, said that since the Deloitte report was completed, Coles had recorded food deflation for the past eight consecutive quarters.

Anger at abattoir closure

NEERIM farmers Sandra and Terry McPhee said the shock closure of a Gippsland abattoir would kill off their small goat meat business according to a report in The Weekly Times.

The sudden closure of the LE Giles abattoir at Trafalgar has left many goat and pig producers without a processing plant in the peak demand period of Christmas. It was closed almost four weeks ago after an Animals Australia video alleging animal cruelty was given to regulator PrimeSafe.

The McPhees said they might be forced out of business without a local abattoir for their meat, which is sold to local restaurants, butchers and markets. The nearest abattoir is Kyneton, and lengthy transport was unviable for their animals.

"The restaurants (we supply) have taken goat off the menu - we've got no business if we can't get another abattoir," Sandra said. She asked what hope was there for Australian agriculture if the auditor "doesn't do their job properly".

Coles warns against bullying buyers

SUPERMARKET giant Coles is warning its buyers to behave legally and not bully its farmer suppliers in a move which is believed to be a world first according to a report in The Weekly Times.

A Compliance Factsheet - Unconscionable Conduct issued to Coles' buyers, and seen by The Weekly Times, directs buyers to contact lawyers at Coles' parent company Wesfarmers to ensure their negotiation techniques were legal.

It is understood Woolworths has not sent any similar correspondence to its buyers. The letter warns buyers their negotiations with farmers and other suppliers could be scrutinised and the ACCC is monitoring Coles' conduct.

One direct supplier said Coles had been "doing that every day for 10 years". He said Coles would ask suppliers to submit a "bid" for how much they'd sell their commodities for and then they tell you you're (a few dollars) over the price and ask if you want to resubmit," the supplier said. "(It's) dummy bidding."

Vic saleyards to lead animal welfare push

VICTORIAN saleyard operators will lead the way reforming animal welfare standards. The Weekly Times says Victoria will push ahead and make changes to the current rules before any national agreement.

The paper says that a meeting of industry groups in Melbourne last week decided to immediately review the current codes of practice for animal welfare in saleyards - currently known as the Brown Book.

The group, which included the Livestock Saleyards Association of Victoria, the Department of Primary Industries and the Victorian Farmers Federation, also formed a reference group to assess current practices.

However, not all saleyards adhere to the Brown Book code, which was last reviewed in 2002. The reference group will review the current code of practice and others in use, with the aim of a common version to be used in the 30 saleyards across Victoria.

Prime time for weaner calves

WEANER calf producers are hoping for big start to the year at Hamilton, Wodonga and Casterton. The Weekly Times says when 60,000 weaner calves go to market next month; producers will be about $50 million richer or poorer.

January is shaping as a boost for vendors and a challenge for buyers. Sales will kick off on January 4 at Hamilton, Casterton and Wodonga. Hamilton will offer 17,500 calves, while Casterton has 11,000. There will be 11,500 calves on offer at Wodonga.

In the first month of sales alone, nearly 60,000 weaners will hit the saleyards.

Elders Mortlake manager Alistair Drummond said vendors were feeling "positive" despite a cold, hard Western District winter leaving calves lighter than normal.

"The calves don't carry the weight that they have in previous years, but quite a few buyers prefer cattle which are lighter, as they believe they can make more of a margin out of them," Drummond said.

Japan lifts beef trade suspension

AUSTRALIAN beef exporters face more competition after Japan agreed to allow more beef from "mad cow disease" affected nations according to a report in The Weekly Times.

There had been trade restrictions on beef from the US, Canada, France and the Netherlands after outbreaks of bovine spongiform encephalopathy, commonly known as BSE.

The paper says that the US and Canada were only able to export beef to Japan that was killed from animals under 21 months. Japan had banned exports from the Netherlands and France.

Media reports say Japan is expected to open up beef exports from US and Canada to allow animals up to 30 months to be killed for the Japanese market. The decision was based on better safety procedures and a decrease in reported cases worldwide of BSE, which had slipped from 2215 in 2001 to 12 in the first nine months of the year.

Online livestock sales boom

RECORD numbers of livestock producers are flocking to online sales says The Weekly Times. And AuctionsPlus is not only selling big numbers of stock, but also attracting its largest fields of buyers.

The paper says two weeks ago the online selling system sold a record 81,000 sheep and that late last month a whopping 338 buyers logged in for a cattle sale - the biggest number ever.

Industry players say the scarcity of regular store sheep sales had forced the hand of buyers, with small, infrequent physical store markets allowing limited opportunities to buy.

It has meant sheep offered on AuctionsPlus has now swapped from 40 per cent prime stock and 60 per cent store stock, to 80 per cent store stock, with about 20,000 offered each week.

Lotfeeders juggle grain

BUMPER feed grain supplies are expected to have little impact on cattle feedlots. The Weekly Times says despite mounting tonnages of feed wheat, downgraded by rain across NSW especially, price is just one of many factors lotfeeders are juggling.

When it comes to filling those lots, it is the cost of cattle that is the biggest factor.

Australian Lot Feeders Association chief executive Dougal Gordon said higher supply of feed wheat did not mean increased demand for feeder cattle.

"The largest cost of production for lot-feeders is the feeder cattle, followed by grain," Gordon said. "Given the La Nina conditions experienced over much of the past 12-18 months, feeder cattle prices have been extremely strong."

At the end of last week, national saleyard prices for feeder steers, 300-400kg liveweight, averaged 221c/kg liveweight, up 2c/kg on the week before and 19c/kg on the same time last year.

RSPCA scheme for beef

THE RSPCA has been prompted to develop its own guidelines for an approved farming scheme for beef sold at Australian retail outlets according to a report in The Weekly Times.

Already, the RSPCA Paw of Approval stamp, which denotes product from RSPCA-approved farms, can be found on pork, chicken, turkey and eggs in major supermarkets.

RSPCA scientific officer for farm animals Melina Tensen said the guidelines would be released late this month or early next year. "We've had our Approved Farming Scheme for a number of years and all that time we've been getting phone calls from members of the public asking if we have something for beef and sheepmeat," she said.

Consumers who bought products with the Paw of Approval could be confident it was farmed according to RSPCA standards, she said. Both Woolworths and Coles said they would welcome the addition of RSPCA-approved beef on their shelves.

Pest control key to protecting inland areas, not Wild Rivers

Governments could do more to protect inland river systems by helping graziers to control weeds and pests rather than making 'symbolic' declarations to protect already protected areas a western Queensland community leader believes.

Online news service beefcentral.com says the Queensland Government extended Wild Rivers declarations to the Cooper, Georgina and Diamantina catchments in western Queensland last weekend.

A move it says will prevent the development of large dams and mining projects in the region. The Government has also announced funding for 10 new indigenous rangers to monitor the newly declared Wild Rivers area.

However Boulia Shire mayor and cattleman Rick Britton believes the declarations are largely symbolic, because local catchment plans are already in place to stop developments such as like large-scale irrigation and mining in the river systems.

He fears that all it will do is create more red tape that will make it harder for landholders to undertake necessary on-property work, such as replacing ageing stock infrastructure with new technology and poly pipe designed to save water and labour.

Projects aim to lift WA beef profitability

WA Beef Council chairman Tony Hiscock hopes the organisation's move to become an Incorporated Association can help further expedite projects designed to improve the value of WA beef products across the supply chain.

Online news service beefcentral.com says the Council recently elected office bearers including Donnybrook producer John Fry as vice-chairman, Dongara producer Craig Forsyth as secretary and WA Meat Industry Authority chief executive Renata Paliskis as treasurer. Broome cattleman Kurt Elezovich joins management committee.

Hiscock said the change in the Council's structure would allow it to operate more independently of the State Government and Department of Agriculture and Food WA, as well as fast-track its processes.

Formed out of the WA Stocktake Report, the Beef Council has initially operated via funding from the Cattle Industry Compensation Fund (CICF). With a number of projects on the table further funding will be leveraged from the Federal and State governments as well as Meat and Livestock Australia.

Spyglass focus on perfect beef herd

THE new Spyglass Research Station, Charters Towers, last week celebrated one year since the State Government purchased it for $10 million according to a report in the Queensland Country Life.

The government purchased the 38,200-hectare property as part of a strategy which will see a number of other research stations across Queensland decommissioned, to make way for new facilities.

Department of Employment, Economic Development and Innovation (DEEDI) Agri-Science Queensland acting beef science leader Bob Karfs, Townsville, is heading up the animal science development of Spyglass.

Karfs said the research station was an aggregation of two properties (Spyglass and Lucky Break) and would carry about 4000 adult equivalents once fully operational.

Located in the cattle grazing heartland of the upper Burdekin catchment it will be the main State Government beef research facility in Queensland once fully operational.

Australia 'no threat' to Japan ag: Ludwig

AUSTRALIAN primary producers pose no threat to Japanese agriculture because Australian farmers have little chance of increasing productivity says the Queensland Country Life.

That is the view of Agriculture Minister Joe Ludwig, the man who is better known for almost single-handedly taking the live cattle export business to the brink of destruction earlier this year.

Ludwig, who was in Japan last week to lobby officials in a bid to revive a free trade agreement, addressed the Japanese parliament, offering soothing words to local legislators who fear their farmers will be undermined should an FTA be signed between Japan and Australia.

Nationals Leader Warren Truss said Ludwig's comments should be seen in the context of his audience, but he remained concerned the minister might have left the door open to ceding ground on agriculture in order to get the FTA signed.

"What he was trying to say is Australian farmers aren't going to put Japanese farmers out of business," he said. "I'm concerned he may have given the impression Canberra would be prepared to accept a soft deal making any FTA with Japan worthless."

MLA UPDATE

EYCI continues bull run

Australian cattle prices have finished 2011 on a positive note, with the benchmark Eastern Young Cattle Indicator (EYCI) hovering around the 410¢/kg cwt mark during December.

While the past 12 months has been a very interesting period for the cattle market, with the A$ and major demand issues in key export markets influencing export cattle prices throughout the middle of the year, the above average season and fierce restocker and feeder demand underpinning prices for young cattle.

For 2011, the EYCI peaked at 424.25¢/kg cwt in March and the lowest level was a respectable 370.5¢/kg cwt in July.  Competition for young cattle has been robust for the past 18 months on the back of the improved grazing conditions and the tighter supplies of young cattle. Significant supply delays caused by flooding in Queensland influenced prices, with competition soaring for very limited supplies. However, the higher prices were not a deterrent to buyers, as feeders, processors and restockers all secured a similar proportion of cattle compared with previous years. 

The enthusiastic restocker demand, tightening supplies and a higher standard of cattle were the key factors in the EYCI averaging 396¢/kg cwt in 2011 - some 12% higher year-on-year. In the latter part of the year the young cattle market gained momentum as the EYCI defied the traditional season trend and remained above the winter peak of 398.5¢/kg cwt. The EYCI finished Thursday at 413.75¢/kg cwt - the highest December figure on record and 31% above the five year December monthly average.

The number of EYCI eligible cattle in 2011 declined 4% on 2010, as producers continued to rebuild herds after the drought. The strong desire to rebuild herds coupled with the higher cost of replacement store females meant producers retained more females for breeding purposes, causing yearling heifer throughput to decline 17% year-on-year. The better season and higher prices enticed producers to sell more yearling steers, with consignments increasing 2% year-on-year.

The Roma Prime market was the largest overall contributor to the EYCI accounting for 18%, while Dalby came in next with 10% of numbers. In NSW, the Wagga market was the biggest contributor, followed closely by Gunnedah and Dubbo. Wodonga was the most significant Victorian market, trailed closely by Pakenham. In terms of categories within the EYCI, yearling steers accounted for 46% of all cattle included, yearling heifers 28%, vealer steers 11% and vealer heifers contributed 14%.

With the selling year drawing to a close, the final EYCI will be published on Tuesday 20th December.

Korea prepares for Lunar Year demand

Trading activity in the Korean wholesale market for beef continued its slow pace this week, similar to previous weeks, with Australian beef exporters reporting on reserved buying from Korean importers. Some Australian beef packing companies will only have limited supplies available in the next few weeks, as they prepare to shut down over the holiday period. However, most of the beef stocks needed to supply the market to pre-empt Lunar Year demand (ahead of celebrations on 23 January 2012) have reportedly already been secured.

Australian beef export volumes from 1-12 December this year accumulated to 5,045 tonnes swt (chilled beef making up 25%) with volumes for the 2011 calendar tipped to total 145,000 tonnes swt - only about 5,000 tonnes less than the record set in 2006.

Prices finish 2011 on a positive note

National cattle and lamb prices have finished 2011 on a strong note, with wet conditions and tight supplies continuing to underpin the market heading into the Christmas break for the second consecutive year.

The EYCI finished Thursday at a December record of 413.75¢/kg cwt, while the run of increased lamb offerings in Victoria has again failed to restrain prices, with the national trade lamb indicator averaging 521¢/kg cwt for the week.

Cattle, lamb and mutton prices averaged higher across all major saleyard categories for 2011, with the above average seasonal conditions keeping turnoff rates constrained and producers firmly entrenched in rebuilding mode. Prices across all of MLA's National Livestock Reporting Service major categories set calendar year records (in nominal terms), with cattle averaging 6-12% higher year-on-year, while lamb prices averaged 8-16% higher.

However, while a calendar year average of cattle prices for 2011 paints a relatively positive picture for producers, it also fails to recognise that 2011 was a year that saw the industry face a series of unprecedented events. An A$ averaging 103US¢, very tough conditions in Japan following the natural disasters, the global economic wobbles and the live export ban all cast major shadows over the cattle market throughout the year. Indeed, most of these factors, and their impact upon markets, will be carried into 2012, and possibly beyond.

However, despite some major shocks to the system throughout 2011, the past year has seen both beef and lamb exports increase, even with constrained production. Globally, the demand for Australian red meat into 2012 is expected to remain strong, with beef shipments continuing to grow into non-traditional markets and lamb receiving the benefits of low global supply.

US market higher

US imported beef prices were generally higher this week, as market participants tried to place orders before seasonal plant shut-downs in Australia and New Zealand.

The imported 90CL cow beef indicator increased 2% from last week and 9% year-on-year, to average 202.5US¢/lb CIF, the highest value since April. In A$ terms, 90CL beef averaged 422.6¢/kg this week - up 21¢ on the previous week and 9.4% above the corresponding period last year.

Although the depreciation in the A$ might give exporters some relief on the beef trade to the US, the concern around global economic conditions remains, which continues to place doubt over the sustainability of commodity prices, including beef.

US domestic 90CL beef prices also increased this week on the back of expectations of lower cow slaughter in the coming weeks. Signs of improvements in foodservice and retail demand also contributed to the lift in domestic beef value.

According to Steiner Consulting Group, US domestic beef prices are anticipated to remain firm on expectation that domestic cow slaughter will slow down, resulting in modest increases in imported beef supplies.

Hide prices ease

Local hide prices were slightly cheaper this week, with several contributors lowering prices in the wake of weakening international demand.

Additionally, there was reportedly only a handful of Chinese orders competing, with tanners continuing to discount product in an effort to increase activity.

Naracoorte weaner steer sale

A good quality yarding of mainly weaned Angus, Simmental, Murray Grey, Charolais, Shorthorn, Poll Hereford, European and British cross vealer steers sold to solid restocker and feeder competition. The good seasonal conditions assisted in most weaners being medium and heavy weights.

There were 1,540 head of EU accredited steers offered, with 46% being retained in the system, with those and the weaned steers attracting the strongest demand. Overall, the 4,197 steers averaged $723/head, or 238¢/kg lwt.

Local offers were supported by Mt. Gambier, with one order sourcing 750 head, Penola, Millicent and Adelaide from SA, with Victorian interest from Leongatha, Ballarat, Hamilton, Apsley and Hopkins River. NSW orders from Birregurra, Coonamble and Albury also added to the mix.

The light Angus weaner steers ranged from $695 to $750/head, or an estimated 270¢ to 280¢/kg lwt. The remainder of the lightweights ranged mostly from $470 to $740/head, or 214¢ to 286¢/kg lwt.

The medium weight Angus weaner steers averaged $766/head, or an estimated 246¢/kg lwt after selling to $810/head. The few Murray Greys offered sold closer to $726, as the British cross lines made around $746/head, or around 237¢/kg lwt. The European cross lines reached $780/head, to average $764/head, or close to 240¢/kg lwt. There were also a few Shorthorns that averaged $731/head.

Heavy B muscled Angus weaner steers topped the sale at $905/head and mostly made around $848/head. Dominating the sale were the heavy C2 Angus weaner steers, which made to $895/head, to average $806/head, or an estimated 226¢/kg lwt. The heavy B muscle European cross weaner steers sold to $855/head, with most closer to $809/head, or around 220¢/kg lwt. There were also some C muscle lines that made around $790/head. The Hereford C2s averaged $842/head and 235¢/kg lwt. The British cross heavy weights made mostly around 221¢/kg lwt or closer to $774/head.

Grown cattle prices finish strongly

The grown cattle market finished 2011 in a similar fashion to the way it started the year, with prices at historically high levels, as heavy rain across key supply regions rejuvenated forward supply concerns. Competition in the physical markets was particularly strong on the reduced yardings, with buyers eager to fulfil orders prior to the holiday period.

Export processor demand was reportedly intense, with prices for grown steers and cows dearer at most markets, with heavy steers (500 - 600kg lwt) frequently selling over 200¢/kg lwt. Exacerbating the strong demand was the tighter supply after the weekend rain in central and southern Queensland. At the close of Thursday's markets, the eastern states heavy steer indicator was 1¢ dearer, at 199¢/kg lwt.

Cow prices also trended higher on the back of the increased processor competition. The recent rise in cow prices has been underpinned by robust international demand for manufacturing beef - with heavy cows (540kg +) regularly selling over 180¢/kg lwt.

Australian cattle herd set to grow in 2011-12 - ABARES

According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) recently released Agricultural Commodities, the Australian cattle herd is set to reach a 34-year high in 2011-12, at 30.2 million head.  

ABARES expects herd rebuilding to continue on the back of the better seasonal conditions, with producers retaining breeding stock. With female slaughter expected to decline in 2011-12, total slaughtering are forecast to decline 2% year-on-year, to 7.9 million head - despite an anticipated increases in male cattle throughput. Although total slaughter is expected to decline, beef and veal production is expected to remain relatively stable year-on-year, at 2.1 million tonnes - the result of higher average carcase weights.

Strong restocker demand, tight supplies and improved demand from emerging markets are expected to underpin higher saleyard prices in 2011-12. According to ABARES, the weighted saleyard price is expected to average 326¢/kg cwt in 2011-12, 0.9% higher than the previous year.

Total Australian beef and veal exports in 2011-12 are expected to remain relatively steady at 941,000 tonnes swt, with exports to Japan (336,000 tonnes swt) forecast to fall 4% year-on-year and the US (160,000 tonnes swt) to remain stable over the same period.

NZ beef exports disrupted in November

New Zealand (NZ) beef exports declined 10% year-on-year during November, to 18,500 tonnes swt (NZ Meat Board) after a slow start to the cattle processing season (beginning October). Reports indicate that North Island bull slaughter, in particular, is well behind the previous year, with good growing conditions encouraging producers to retain stock longer than usual, while a major gas pipe leak resulted in some processor disruptions in the North Island late in October (NZX Agrifax).

Beef exports declined to most major markets compared with November 2010, with shipments to the US back 13% year-on-year, to 6,119 tonnes swt, South East Asia (primarily Indonesia) down 15%, to 2,808 tonnes swt and Japan 9% lower, at 1,977 tonnes swt. Taiwan was one of the few markets to record an increase, jumping 17% above the same period last year, to 1,200 tonnes swt.

US beef supply outlook unchanged for 2012

The United States Department of Agriculture (USDA) has released the December World Agricultural Supply and Demand Estimates, indicating that US beef production will reach 11.38 million tonnes cwt in 2012. While this figure remains unchanged from the November estimate, 2011 production has been revised down slightly, to 11.93 million tonnes.

Total estimated US red meat (including pork) and poultry production was revised down for 2012, with lower broiler production more than offsetting higher pork volumes, with steady beef and turkey production.

US beef imports for 2011 have been revised up after a larger than expected third quarter, to an estimated 931,608 tonnes cwt , while there was no revision to the 2012 import estimate of 948,860 tonnes cwt.

Beef and veal export values up 23% in October

The value of Australia's beef and veal exports kicked during October, surging 23% year-on-year, to A$446 million - the highest monthly return since March 2009.  While the high A$ continued to challenge exporters (averaging 8% higher against the US$ and 6% above the Yen during October), the 14% jump in beef and veal exports for the month was the main contributor to the higher returns.

Driving the surge in export values in October was the improvement in the three largest export markets of Japan (A$155 million), Korea (A$68 million) and the US (A$59 million), with values surging 16%, 28% and 41% year-on-year, respectively.

Returns from the remaining markets continued to improve, in line with higher export volumes, soaring 22% year-on-year, to A$164 million, underpinned by higher returns from Taiwan (A$19 million) and Indonesia (A$16 million). However, lower volumes for the month did see a contraction in total returns from Russia (A$26 million) and the EU (A$12 million), falling 37% and 13%, respectively, year-on-year.

For January to October, Australian beef exports were valued at $3.8 billion - 7% higher than the same period last year. While values for Japan ($1.3 billion) and the US ($596 million) have fallen 4% and 12% respectively, year-on-year, shipment values for Korea ($634 million) and Russia ($213 million) have surged 24% and 25% respectively during the same period.

Japan resumes FTA talks with Australia

The Agricultural Ministers of Australian and Japan met in Japan this week, ahead of the 13^th round of Free Trade Agreement negotiations between the two countries. The Japanese media reported on the friendly but cautious stance of Minister Kano, who emphasized the sensitivity of key agricultural items including beef.

December has been a busy month for Japanese foreign trade officials, with a range of trade discussions; including Trans Pacific Partnership negotiation in Malaysia; Japan/China/Korea FTA study committee in Korea; WTO conference in Switzerland and AJFTA talks in Canberra.

In the Japanese wholesale market this week, the trade reported on discounted Japanese domestic beef attracting end-users, while the chilled Australian beef business lacked sparks. The slightly lower A$ eased some manufacturing beef prices this week, but they still remained higher than Japanese expectations.

Potential cattle co-product values increase

Potential co-product values for a grassfed Japanese steer (average 331 kg cwt) increased 7% year-on-year in November, averaging $226.16/head. Despite the persistently high A$, co-product values were all higher year-on-year, except for meat and bone meal, which finished the month at $23.97/head, 6% lower year-on-year (MLA's Co-products Monitor).

Meat meal prices fell in November as a result of lower demand from Indonesia, with buyers reporting high stock levels. There is also competition from NZ and US meat meal in Indonesia, with other markets in South Asia also quiet.

Tallow values finished November 3% above the same time last year, averaging $70.27/head. With the relaxation of price controls in China, as well as the peak season for Chinese tallow production finished, demand from China has been strong since September. The New Zealand tallow production season is under way and is putting pressure on Australian prices in China, particular for lower grades - with prices in December and January expected to be steady or even lower.

MLA's NLRS reported that demand for leather is weak due to uncertainty surrounding the global economic environment in Europe. With hide stocks increasing and higher production expected, prices are expected to ease. Nonetheless, hide (281-350/kg) values finished November 14% above a year ago, to $43.67/head, albeit compared with a low 2010 price.

Beef offal values moved 11% higher year-on-year in November, to $88.25/head, although larger yielding offals such as liver, tripe, tail and tongue were all slightly lower than in October. Strong seasonal demand from Japan, as well as steady demand from Korea and Russia, helped push prices higher in November for selected items.

Japan to consult Food Safety Commission on 30 months

The Ministry of Health, Labour and Welfare (MHLW) in Japan recently announced its decision to relax the import conditions for beef from the US, Canada, France and Holland. The officials will consult Japan's Food Safety Commission to lift the current age restriction for US and Canadian products (all beef must come from cattle 20 months of age and under), to 30 months.

The announcement sparked debate among the public as to whether the government is under pressure from the US on the back of Japan's decision to participate in the Trans Pacific Partnership (TPP) - a free trade framework initiated by the US.

The schedule in terms of the consultation and actual changes to the protocols have not been made clear to date. However, several media outlets speculated last week that alteration to the 30 month restriction may occur after the Japanese summer (July to September) in 2012.

Lively debate is expected during the consultation process, as the proposed changes to the import restrictions would have implications on Japan's own BSE testing regime. All prefectural councils with cattle processing facilities in Japan continue BSE testing on animals less than 21 months of age, despite funding for test kits being discontinued by the government in 2008.

Imported beef consumption rises in Japan

The consumption of imported beef in Japan during October increased 29% compared with the corresponding period in 2010 and was 18% higher than the five-year average, totalling 48,128 tonnes (boneless equivalent). The year-on-year growth was largely assisted by the surge in imports from the US, consolidated demand for Australian frozen beef from the fast food sector, along with relatively low volumes in October 2010.

While monthly imports lifted by 31% year-on-year, stocks were kept at relatively steady - only 4% higher than a year ago at 79,737 tonnes, after reaching 87,228 tonnes (up 11% year-on-year) in August this year.

Demand for the Japanese domestic beef continued to stagnate in October, with consumption for the month declining 4% year-on-year, to 28,507 tonnes. Consumption (the amount of beef supplied and distributed in the market) data is released by Japan's Agriculture and Livestock Industries Cooperation.

WA grazing land devastated

PASTORALISTS in WA's Mid West are facing millions of dollars in losses after nine bushfires swept through some of the state's prime grazing land last week according to a report in The Weekly Times.

Pastoralists and Graziers Association of Western Australia spokesman Edgar Richardson said livestock farmers had been preparing for their best season in years, after heavy seasonal rain, before the fires struck.

"It's a disaster for those people because they've been going through a series of droughts for quite a few years," he said. "They've probably had their best winter and summer rains for years - they've got all this grass (for grazing) and now it's gone."

Richardson said it was too early to count livestock losses but estimated the cost to the industry would be in the millions. "Whatever figure you come up with is probably not going to be enough anyway, because of the potential the season had to provide people with financial gain," he said.

Live cattle exports hammered

LIVE cattle exports from the Northern Territory to Indonesia are down by about 55,000 head for the year compared to the same time last year according to a report in The Weekly Times.

Many of the Territory's pastoralists are almost solely reliant on the trade to Indonesia and the ban on trade for about a month by the Federal Government earlier in the year devastated the industry.

Department of Primary Industries figures for the year to November 30 show 182,524 head have been sent from the Territory compared to 237,613 at the same time last year.

The paper says that factoring in cattle sent to countries apart from Indonesia shows there have been a total of 211,180 cattle exported, compared to 257,126 at the same time last year.

Russia's rise in Angus

RUSSIA is fast emerging as a multi-million-dollar player in the booming Angus heifer market, currently paying up to 250c/kg for young breeders according to a report in The Weekly Times.

While Australia has landed two shipments within two months, its exporters are fighting competition from the US, which is aggressively marketing its own stock to the same buyers.

The current order for 6000 heifers was fully subscribed in 10 days but agents are still taking nominations for a reserve list. The latest order brings the number of heifers sent by live export to more than 12,000 since the start of November, with industry sources indicating the value is close to $15 million.

While heifers are bought on a dollar-a-head basis, the prices equate to about 250c/kg liveweight. Last month, Elders advertised its Russia 21 International Angus Breeding Order. The buyer, from the Bryansk region, is a private company is using government funding designed to boost the Russian cattle herd.

Labelling laws extended

COUNTRY-of-origin labelling is to be extended to unpackaged beef, sheepmeat and chicken. The Weekly Times says until now these unpackaged meats have been exempt from "Product of Australia" labelling due to the small quantity of imports from New Zealand and Vanuatu.

But Food Standards Australia New Zealand recommended extending the labelling laws to unpackaged beef after 2010 changes in Australian quarantine laws that allowed imports from countries with a history of mad cow disease.

An assessment report from FSANZ stated the extension of country of origin to red meats and chicken played a key role in the creation of consumer trust and created consistency across the retail sector.

The authority rejected voluntary labelling as "unlikely to lead to universal adoption of country-of-origin labelling". But Kew butcher Paddy Maggin said the new standard, due to start in July, "seemed like over-regulation".

Weaner season kicks off

WEANER season kicked off with a solid start at the first major southern weaner sale at Naracoorte in South Australia. And The Weekly Times says vendors were generally very pleased with the rates and competition was strong.

Major buyers included Sundown Pastoral from NSW, T&R Pastoral, Lion Rural at Dismal Swamp in SA as well as other local buyers and some from Swan Hill and Leongatha.

Onlookers observed that local buyers had a chance this year and the absence of JBS was not a major factor. EU-accredited and weaned cattle both attracted premiums of approximately 10c/kg.

Prices topped at $880 for the first pen sold, 12 Angus and Angus-cross 8-10-month-old steers, 415kg, bought by T&R Pastoral. The same auction last year was one of the cheaper ones in what became an increasingly dear weaner selling season.

Rio snaps up farm land

Global mining superpower RIO Tinto is believed to be in the midst of acquiring some 60,000ha of prime grazing land for coal developments in Central Queensland says The Weekly Times.

The deals are expected to reap landowners as much as $100 million, but not all of them are happy to leave, with one property owner, the Lee family of Caroa Station, having been forced out because of Ensham coal mine development in the 1990s.

"We would like to stay," a family partner, Andrew Lee, said. "I think most of the landholders would have been much happier to be left alone. We all know we are here because this is some of the best cattle grazing country in Queensland."

Rio Tinto is planning major expansion of its Central Queensland mines, as well as proposing an open-cut mine near Capella. The Lees have been Rio needs up to a third of their 23,400ha and the company wants to start by 2014.

Japanese export gap closing

THE cut-throat nature of the beef industry has been revealed in a comparison of prices for meat cuts sold into the lucrative Japanese market in October according to The Weekly Times.

The figures, compiled by Miho Kondo, manager of Japan Trade Services for Meat and Livestock Australia, show just a few cents a kilogram separated US and Australian beef on major items such as loins and briskets.

It is unusual to see such a snapshot into an export market, and Mr Kondo said he was able to get the data from Japan's Ministry of Finance import statistics and trade news publication Chikusan Nippo.

The paper says figures showed in October there was a difference of 13c/kg for chilled loins from Australia and the US, a 1c/kg difference on frozen loins and a 4c/kg difference on frozen briskets.

Weaner sales to sizzle

HEAVY rain in northern NSW is expected to drive demand across a larger offering of 60,000 weaners at Victoria's New Year calf sales, which open on January 4 at Hamilton, Casterton and Wodonga, with almost 9000 calves offered on the first day.

The Weekly Times says that last year, more than 50,000 cattle were sold at the weaner sales and Rodwells Yea manager Adam Mountjoy said early tallies showed 11,000 calves would be sold locally in January, and buyers were optimistic.

Mountjoy said there were signs of a bumper weaner selling season, with high prices paid at Euroa in the past fortnight. "We are already seeing good prices at early sales, and really the northern buyers are yet to step in," he said.

Elders Mortlake manager Alastair Drummond said the cold, wet winter which had produced lighter calves in the Western District could favour vendors as "a lot of calves don't have the weight they normally do, but they still have the breeding".

Alpine grazing may return

THE Victorian Government has refused to rule out reintroducing cattle to the Alpine National Park this summer says The Weekly Times. A spokesman for Environment Minister Ryan Smith said a decision was "something that's still yet to be determined".

But the Government cannot launch another season of grazing trials to reduce fuel loads in the high country until it gains approval from federal Environment Minister Tony Burke.

Smith's spokesman said preparations were being made to lodge an application "soon".

Once the application is lodged Mr Burke has 20 working days to make an initial response to approve or reject the application.

Mountain Cattlemen's Association of Victoria president Mark Coleman said his members were ready to take cattle into the park this season, as soon as they received the all-clear from the Government.

Baillieu clan's key cattleman

Stock and Land says Ted Baillieu's brother-in-law had access to senior government bureaucrats and acted as a ''backroom'' agent for the mountain cattlemen as the Coalition controversially returned cattle to the Alpine National Park.

Documents obtained by The Age under freedom-of-information laws show the Premier's brother-in-law Graeme Stoney, a former Liberal MP and cattle grazier, was the behind-the-scenes middleman between the senior public servants running the alpine grazing trial and the cattleman families.

He was also given government reports, maps and information before it was available to the public. The extent of Stoney's involvement is revealed for the first time in emails written by senior Department of Sustainability and Environment managers.

These show it was Stoney, not Mountain Cattlemen's Association of Victoria president Mark Coleman, who organised the grazier families, helped with contracts, received department documents and notified the government when families returned their cattle to the park.

Feeder prices push grainfed profits into the red

Online new service beefcentral.com's key message to cattle producer readers in the past week has been "if you're having a Christmas drink at the pub with a lotfeeder in coming days, make sure he (or she) shouts first".

Historically-high crossbred feeder steer prices ex Darling Downs reached this week have pushed profitability on grainfed 100-day cattle squarely back into the red, according to its latest breakeven calculations.

After a brief passage during October when the calculation flirted with profitability, last week's budget, based on its standard 100-day grainfed beast placed on feed and closing-out in the third week of March suggested a negative $40-$50 trading result.    

That has slipped from a negative $30 in the identical calculation a fortnight ago; +$1 trading result on October 27; and a +$6.75 figure a fortnight before that. Those were the only two positive trades recorded since beefcentral.com started on May 11.

Record feeder prices

Recent rain has only served to exacerbate the current supply/shortage problems for feeder cattle leading into the Christmas break according to online new service beefcentral.com.

Late last week the National Livestock Reporting Service's daily indicators had a national feeder steer indicator price (not for specifically crossbred cattle, ex Downs) set at 220.7c.

Records show ‘patches' of $215c being paid for crossbred feeder steers earlier this year by lotfeeders, but it was not across the board. Looking back in history, short passages in 2006 and 2001 were contenders, but under highly unusual conditions.

In September, 2001, when the A$ was worth considerably less, the Queensland Cattle Market Index briefly reached 220c (feeder steer price did not quite reach that level), before collapsing to 129c just nine months later after the discovery of BSE in Japan.

Indo processing capacity 'adequate' says exporter

Wellard Rural Exports managing director Steve Meerwald says he is confident of the ability of the limited number of accredited abattoirs in Indonesia to handle the large volumes of cattle now flowing into the market from Australia says beefcentral.com.

Speaking at the Westpac Agribusiness Know-How forum in Rockhampton, Meerwald said many of the current 15 accredited Indonesian abattoirs operating under the market supply chain assurance system were greatly underutilised in terms of capacity.

"It's an issue, but not insurmountable," he said. "Sites that were killing 20 a night will now be able to do 60 a night, and those that once operated for an hour a night will now work for 5-6 hours. There will be fewer, better and bigger works. Some will add a second shift." 

Meerwald said he also expected to see the number of accredited abattoirs in Indonesia double during 2012. The incentive and motivation for other processors to meet the standard would come when they see other processors killing large numbers of Australian cattle.

Reprieve for exports, but Labor gunning for kill

FEDERAL Nationals Leader Warren Truss said Labor voted for a temporary reprieve for the live cattle trade at its weekend conference but told The Land its 215 to 173 vote showed the "dogmatic determination" of Labor to kill this important industry.

Truss said there was "no doubt" the live export critics would return to haunt cattle producers of northern Australia. "One of the most frustrating things from the ALP Conference was the sheer bloody-minded ignorance of those opposing the live trade, many seriously suggesting it could be replaced with chilled meat," he said.

"In Indonesia, for example, there are 240 million people and yet more than 90 per cent of households do not have refrigerators, meaning there is little demand for chilled boxed meat," he said.

"Boxed meat into Indonesia is the premium end of the market and limited. They must buy fresh meat from local wet markets if families are to eat meat at all. Chilled meat comes at a higher price... they can't afford it and they don't want it."

Feed efficiency in beef cattle: fact or fiction

Net feed intake measures whether an animal eats more or less than expected for its weight and growth rate over a test period. Low NFI animals eat less than expected and are therefore more efficient says online news service says beefcentral.com.

NSW Department of Primary Industry research shows the growth and economic advantages of efficient (low NFI) over inefficient (high NFI) steers in feedlots is consistent and heritable in paddock and feedlot trials.

For example, several comparisons of high and low efficiency lines developed from a single Angus beef herd at Trangie, NSW, have shown a considerable range in efficiency.

There are likely to be many reasons for the measured variation in efficiency. Differences in body partitioning (tendency to lay down fat vs. muscle) have been consistent however, with low NFI having less subcutaneous fat than high NFI cattle.

Coles open to RSPCA beef, lamb

Supermarket giant Coles has announced it has no immediate plans to introduce RSPCA endorsed beef and lamb - but will not rule out the idea according to a report in The Land.

Coles spokesman Jon Church told the paper the supermarket giant had "no specific plans" to introduce beef and lamb approved by the RSPCA. "But if we did, we would work closely with suppliers," he said.

"And the other thing to note is that would be offered as a choice for customers - we would not move to a wholesale situation where all our beef and lamb was RSPCA approved," he said.

"But we are not implying that we have any issues with the beef or lamb we are selling now." Coles already sells RSPCA-approved turkeys, poultry, eggs and, from next year, will add pork.

Govt blasted for keeping quiet on FMD

Canberra has come under fire for failing to sound adequate warnings about illegal pork products entering Australia from South Korea while the country was facing a devastating foot and mouth disease epidemic says The Land.

An October Department of Agriculture, Fisheries and Forestry report said AQIS had uncovered a substantial amount of illegal imports from South Korea in 2010 during the country's extensive outbreak of FMD.

But the paper says that meat industry representatives have expressed grave disappointment with the government's failure to raise adequate warning signs about the illegal imports.

The department has defended its position by saying a media release was issued, but didn't require a national alert because there was no FMD threat. The March 2011 media release noted a group of food importers and retailers had been investigated by AQIS for importing and selling Korean food illegally.

Beef exports highest since 2008

AUSTRALIAN beef and veal exports surged to a welcome three-year high in November reaching their highest level since October 2008 according to a national Rural Press report.

The report says that the climb to 89,747 tonnes was fuelled by increased beef availability early in the month, the lower Australian dollar and improved exports to Japan and the US.

MLA said while exports were up 1.3 per cent year-on-year, it was the largest monthly volume since October 2008's 93,872 tonnes, and took exports for the first 11 months of 2011 to 867,140 tonnes, 3 per cent above the same period last year.

Also assisting the higher volume for November was a rapid start to the month, which was made possible by increased beef production in late October and into the first week of November.

Pinkeye a real threat following wet and warm conditions

The potential for an outbreak of the highly infectious cattle disease Pinkeye has been heightened by the recent widespread rain and warm weather which is expected to increase fly numbers says Queensland Country Life.

Coopers Veterinary Technical Advisor, Dr Damian O'Brien, says recent conditions could trigger a wave of Pinkeye and all cattle producers should be prepared. "Pinkeye is caused by the bacteria Moraxella bovis, it is highly infectious and affects a large number of beef and dairy cattle each year," he said.

"Given the recent weather conditions an increase in flies is highly likely and we know flies play an important role in transferring disease causing bacteria from infected to non-infected stock.

"Pinkeye causes eye inflammation and ulceration, temporary or permanent blindness, can lower growth rates and contributes to significant reduction in profits as cattle are rejected from certain markets."

Registrations open for cattle genetics conference

BEEF Australia 2012 has now opened registrations for one of its new, marquee events, the Bayer & Bioniche International Beef Cattle Genetics Conference, to be held at CQ University on 6-7 May 2012 says Queensland Country Life.

In keeping with the Beef Australia 2012 theme of ‘Innovation, Collaboration, Inspiration, Celebration', the conference will feature numerous international experts delivering papers on the latest in genetic and genomic research and technology.

Beef Australia 2012 Chairman Geoff Murphy told the paper that the conference would be headlined by two keynote addresses, which were "a must see" for everyone connected with the industry.

"On Sunday 6 May 2012 Dr Peter Barnard, MLA's general manager international markets and economic services, will outline the international market opportunities on offer to the Australian beef industry," Murphy said.

MLA UPDATE

Steak cut prices subdued at Japanese retail

In the Japanese retail market, a survey by Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) revealed easing retail prices for beef loin cuts (including chuck items). The trend was re-enforced by the country's sluggish economy, Japanese domestic beef food safety incidents, and increasing supplies from the US.

Steak cuts have traditionally been less popular in Japan compared with more versatile and affordable items such as shoulder and butt cuts. In the case of imported items, many retailers went for significant price cuts this year, supported by increased availability of price competitive US beef, but also to balance it with substantially discounted domestic beef.

This week, tight Australian cattle supplies and international demand for various cuts limited Australian chilled fullset offers to Japan. While interest in CL products remained relatively firm, inquiry was rather sporadic, reflecting the slow start to the traditionally high beef consumption season in Japan.

Friday daily livestock article

Numbers were lower at Armidale, with a full field of buyers operating. Light yearling steers to restock sold dearer at 250¢, while the medium weight pens generally made 233¢/kg. Light yearling heifers sold to restockers at 219¢, while the few to the trade were 2¢ dearer on 211¢/kg. Medium weight cows were higher, as most pens sold at 163¢ while the heavy cows were averaging 167¢/kg.

Supplies were up at Dubbo and competition was very strong across most categories. Vealer steers to restock were dearer with the majority of pens averaging 268¢while the heifer portion settled 5¢ higher at 241¢/kg. Medium yearling steers to feed were 2¢ higher on 227¢, while the heavy pens mainly sold at 220¢/kg. Light yearling heifers to restock made 206¢/kg. Grown steers to feed were 3¢ higher  on 206¢ and medium weight cows held firm on 146¢/kg.

At the conclusion of Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 5.75¢ higher for the week on 410.50¢/kg cwt. Trade steer prices were 4¢ lower on 208¢ and feeder steers were 2¢ up on 221¢/kg lwt. Heavy steer prices were firm on 197¢ and medium cow was 1¢ cheaper on 154¢/kg lwt.

Both sheep and lamb numbers were higher at Wagga, recovering from the rain effected market last week. Young trade lambs were $3 cheaper, selling from $120 to $139/head and averaging around 539¢/kg cwt. Heavy older lambs were $6 lower on $146/head or 524¢/kg cwt. Heavy 4 score old lambs topped $183/head or 544¢/kg cwt. Most mutton pens were cheaper as the heavy Merino ewes averaged 340¢/kg cwt.

Sheep numbers climbed at Hamilton in a mixed quality yarding. Light weight Merino ewes to the trade were around $5 dearer on $80/head, as most pens to slaughter averaged form 300¢ to 388¢/kg cwt. Medium weight  Merino ewes were $2 lower at $65 to $106/head and settled on 336¢/kg cwt.

At the conclusion of Thursday's markets the eastern states restocker lamb indicator increased 15¢ on last week, settling at 548¢/kg cwt. Merino lambs were 5¢ lower on 451¢, while light lambs increased 5¢ - to 499¢/kg cwt. Trade lambs were 4¢ lower on 504¢ and heavy lambs were 4¢ higher on 508¢/kg cwt. Mutton prices finished 2¢ dearer on 365¢/kg cwt.

Déjà vu for Queensland cattle market

In a scenario very similar to the corresponding week last year, heavy rain was recorded across almost all regions of Queensland this week, contracting supplies and underpinning prices. The benchmark EYCI jumped to a record December value of 410.5¢ at the close of Thursday, while the lamb market was largely steady, despite lamb yardings jumping 20% on the previous week.

With the recent heavy rain through key cattle supply regions of Queensland and northern NSW, the ability to move stock will again be a major focus, possibly creating some major headaches for both producers and processors. Flooding around Roma forced the cancellation of its prime cattle sale on Thursday, while many roads are again likely to face weight limits and transport restrictions in coming months.

In response to this week's reduced offerings, and expectation for numbers to remain constrained until the Christmas break, heavy steers (500-600kg C4) in Queensland averaged 375¢/kg cwt - the eighth highest weekly price for the past decade.

The lamb market again showed its resilience, with national average prices for the week only moving slightly, despite a 20% jump in lambs offered through MLA's NLRS reported saleyards. At 260,851 head for the week, it was the largest offering for 2011, with 140,000 head presented through Victorian yards. Trade lambs nationally averaged 502¢/kg cwt, with Victorian trade lambs back 1¢, at 486¢/kg cwt.

With next week the final full selling week for 2011, it should be interesting to see if numbers swell for both lambs and cattle, with producers keen to capture the attractive prices before the break, or whether the positive season will keep turnoff limited.

Dearer prices in lead up to end of year

There was strong demand from all sectors for cattle across MLA's NLRS reported physical markets this week, resulting in a dearer price trend across most sales.

In particular, a solid floor was set by the feeder and restocker sectors for young cattle, and this has highlighted the confidence in the market going forward. Nationally, restockers secured 25% of the vealers and 28% of the yearlings, while feeders purchased 41% of the yearlings, with particular attention on the steer portion.

This resulted in 38% of young cattle being purchased by the trade. They have been able to purchase cattle of a high standard, with cattle available that have been supplementary fed or off crop. This trend is expected to continue following the widespread rain, as there should be ample feed going forward, particularly across the eastern states.

Nationally, trade steers lifted 4¢ on last week to 209¢, and also increased by 11¢/kg lwt year-on-year. Feeder cattle gained 2¢ on last week and increased by 19¢ year-on-year to average 221¢/kg lwt. Competition for young cattle has resulted in the Eastern Young Cattle Indicator (EYCI) climbing to unprecedented levels for this time of year. At the completion of Thursday's markets, the EYCI was 410.5¢/kg cwt. This is the highest December value on record, and is 24¢/kg cwt higher that this time last year.

Grown steers were not immune to the dearer trend as processors, and to a lesser extent, feeders were active in securing numbers. This was driven principally by the recent rains which impacted supply channels in Queensland and northern NSW. Heavy grown steers in Queensland averaged 205¢, while nationally prices were closer to 197¢, to be 10¢/kg lwt higher than this time last year. 

The strongest demand for cows was in the north, with good high yielding lines in Queensland making a top of 191¢/kg lwt. Nationally, medium cows increased 11¢/kg above year ago levels to average 152¢, which was the only category to ease on last week.

Tight beef supply in the US

US imported beef market prices remained high in the past week, with tight supplies of lean grinding beef from Australia and New Zealand (NZ) helping prices.

Australian product is being offered well above what the US market is willing to pay, as competing markets have been making up the difference, while good growing conditions in NZ are slowing the movement of cattle for slaughter (Steiner Consulting Group). Some beef from NZ traded at a discount to Australian product, but supply was still the key issue.

The volatility of the A$ against the US$ continues to be a thorn in the side of traders, and with the uncertainty still bubbling away in Europe, it appears that US buyers will need to pay a premium for Australian beef to return to high volumes. In US$ terms, imported 90CL beef was 11% higher this week than a year ago, and 0.5US¢/lb CIF dearer than last week, while in A$ terms, it was 7% higher year-on-year, at 401.2 A¢/kg FAS, 0.3A¢ cheaper than last week.

Indian beef exports to expand in 2012

With the momentum of several years of rapid growth, Indian beef and veal exports in 2012 are forecast to increase 16% in 2012, to 1.275 million tonnes cwt (United States Department of Agriculture - USDA). This would see India placed third on a list of the world's largest beef exporters for 2012, behind Australia and Brazil, and just ahead of the US.

According to the USDA, India's cattle herd in 2012 is expected to reach a massive 324.3 million head - a long way ahead of the next largest nation, Brazil (197.3 million head). India's massive cattle herd is primarily due to the sacred role that cattle have in the Hindu religion. Indeed, much of the production of beef in India is from the large buffalo herd (carabeef), which provides a very lean source of protein.

Despite having over 300 million head of cattle, India's beef production in 2012 is forecast to only reach 3.265 million tonnes. This compares to Australia's forecast of 2.18 million tonnes cwt with 28.8 million head.

In global markets, Indian beef is comparatively very cheap, and predominantly shipped to South East Asia, the Middle East and North Africa. The growth in demand from these markets in recent years has helped to fuel the rise in shipments, with exports between 2007 and 2011 rising 62%.

Female slaughter falls in October

Australian adult cattle slaughter declined 4% year-on-year in October, to 623,000 head. As a result of the lower kills, Australian beef production eased 1% year-on-year, to 182,000 tonnes swt - as the much improved season helped push adult carcase weights to record levels (Australian Bureau of Statistics).

Female slaughter continued to remain much lower in October on both the same time last year and on the five-year average. Kills were back 16% year-on-year and 26% behind the five-year average, to 237,000 head. So far in 2011, female slaughter has been lower than last year for every month, except February. 

With female slaughter for the 10 months to October down 12% or 367,000 head compared with the same period last year, and 5% or 155,000 head lower in 2010 compared with 2009, there seems to be little doubt that producers are retaining their breeding stock. With all the key cattle regions across the country receiving heavy falls to begin summer and with another wet summer predicted, herd re-building looks set to continue.

Average national adult carcase weights reached a record high in October, rising 3% year-on-year, to 292 kg/head cwt. As a result of the better season, average adult cattle weights were much higher than the same time last year in all states except WA (266 kg/head cwt), which fell 2% on the same time last year. Of note, Queensland (305 kg/head cwt), NSW (290 kg/head cwt) and Tasmania (295 kg/head cwt) set new carcase weight records - averaging 2%, 5% and 6% higher year-on-year, respectively.

Small rise in Australian consumer confidence

There was a small lift in Australian consumer confidence to 111.2 points (up 1.5 points in a week), according to the Roy Morgan Consumer Confidence Rating conducted last weekend. Despite this, consumer confidence is 9.7 points lower than last year.

This week's rise in consumer confidence has been driven by Australians having more confidence in the Australian economy over the next 12 months and in their own financial situations over the next 12 months.

According to Roy Morgan, Australians are more confident about their personal financial situations this time next year, with 40% (up 5%) saying they expect their family to be ‘better off' financially (the highest since early May, 2011) and 20% (down 3%) expecting to be ‘worse off'. The latest results also indicated that Australians are more optimistic about Australia's economy over the next 12 months, with 29% (up 1%) of Australians expecting Australia to have ‘good times' economically compared to 34% (down 3%) that expect ‘bad times' economically.

World food price index strong in November

The Food and Agricultural Organisation (FAO) Food Price Index continued its downward slide of recent months in November, but still remains above the same time last year. The FAO food price index, which measures the monthly change in international prices for five basic food commodities, increased 1% year-on-year to 215 points, also up 25% on the five-year average.

The FAO meat price index remained 10% above the same time last year and 27% higher than the five-year average, to 177 points. Although easing since the 20-year record high of April (180 points), the meat price index has remained relatively stable through 2011 as livestock prices still average well above those in 2010. Meat prices for the 11 months to November have averaged 17% higher than the same time last year.

The sugar (340 points), oils (235 points) and dairy (201 points) price index all moved lower in November, declining 9%, 4% and 3%year-on-year, respectively. While this marks the first year-on-year decline of the year for those three commodity groups, the cereals (228 points) price index remained higher than November last year, moving 2% above last year's price.

Cattle supply ramps up

National cattle throughput at the physical markets reported by MLA's NLRS rebounded, with the positive trend evident across all states. Supplies were 13% higher, with producers showing strong intentions to sell cattle while prices are strong.

Wet weather has again caused disruptions in Queensland, with supply down 15%. Yardings fell after mid-week rain, which resulted in the Roma Prime market being cancelled on Thursday. NSW numbers returned to normal after localised flooding cut supplies last week, with several markets penning significantly more cattle. Victorian markets were also larger, as the clear weather and strong prices enticed greater turn off. WA numbers were up by over 70% after a lift in northern producer turnoff.

Producers across the country have used the few remaining opportunities to sell cattle before the year's end. However, demand appears to have been equally strong, with prices managing to increase even after the influx of numbers.

Dearer prices in lead up to end of year

There was strong demand from all sectors for cattle across MLA's NLRS reported physical markets this week, resulting in a dearer price trend across most sales.

In particular, a solid floor was set by the feeder and restocker sectors for young cattle, and this has highlighted the confidence in the market going forward. Nationally, restockers secured 25% of the vealers and 28% of the yearlings, while feeders purchased 41% of the yearlings, with particular attention on the steer portion.

This resulted in 38% of young cattle being purchased by the trade. They have been able to purchase cattle of a high standard, with cattle available that have been supplementary fed or off crop. This trend is expected to continue following the widespread rain, as there should be ample feed going forward, particularly across the eastern states.

Nationally, trade steers lifted 4¢ on last week to 209¢, and also increased by 11¢/kg lwt year-on-year. Feeder cattle gained 2¢ on last week and increased by 19¢ year-on-year to average 221¢/kg lwt. Competition for young cattle has resulted in the Eastern Young Cattle Indicator (EYCI) climbing to unprecedented levels for this time of year. At the completion of Thursday's markets, the EYCI was 410.5¢/kg cwt. This is the highest December value on record, and is 24¢/kg cwt higher that this time last year.

Grown steers were not immune to the dearer trend as processors, and to a lesser extent, feeders were active in securing numbers. This was driven principally by the recent rains which impacted supply channels in Queensland and northern NSW. Heavy grown steers in Queensland averaged 205¢, while nationally prices were closer to 197¢, to be 10¢/kg lwt higher than this time last year. 

The strongest demand for cows was in the north, with good high yielding lines in Queensland making a top of 191¢/kg lwt. Nationally, medium cows increased 11¢/kg above year ago levels to average 152¢, which was the only category to ease on last week.

Hide prices falling

The local hide market was again cheaper, with weak international leather demand the main limiting factor.

Stock levels have also risen, and manufacturers have lowered prices in a bid to sell product.

Korean wholesale activity steady

Trading activity in the Korean wholesale market remained steady on last week. Average prices for the majority of imported beef cuts in the Korean wholesale market remained unchanged this week. While current prices for imported short ribs are below last year, chuck roll and brisket prices remain higher year-on-year (HKJM).

Lotte Mart, one of Korea's major retailers, reported earlier this week that sales of imported meat in their stores had increased this year - without giving specific figures. While imported beef sales accounted for only 25% in 2000, it has reportedly accounted for 45% this year (JoongAng Daily). The retail giant also expects imported meat consumption to rise in the future.

While consumer demand in recent weeks has reportedly been slow, Korean consumer confidence increased in November compared with the previous month, despite ongoing economic uncertainty (Bloomberg).

Korean beef imports up 22% this year

From January to October this year, Korea imported 259,571 tonnes swt of beef, up 22% on the same time last year (KITA). Chilled beef imports rose by almost 5,000 tonnes swt, while Korea's frozen beef imports increased a massive 42,285 tonnes swt. Frozen beef accounted for 85% of total imports this year, compared with 84% last year.

US frozen beef accounted for 70% of the rise in frozen beef volumes this year, while Australian beef made up 26% and Mexico 4%. However, 81% of Korea's increase in imported chilled beef volumes in the last 10 months was sourced from Australia.

For the year, Australia's total market share stands at 49%, while the US (38%), New Zealand (12%) and Mexico (2%) accounted for the remainder.

Record beef exports to South Asia in November

Australian beef exports to South East Asia and Greater China during November surged 19% year-on-year, to reach a new monthly record of around 15,430 tonnes swt. Exports to the region during January to November 2011 lifted 7% year-on-year, to 129,396 tonnes swt, assisted by double digit growth to almost all markets, with the exception of Indonesia.

Shipments to China and Hong Kong continued to be fuelled by strong demand from the fast food sector, following a surge in prices for domestically produced meat. Taiwan also sourced more chilled and frozen beef from Australia during the 11 months to November 2011. Shipments to Taiwan were boosted by the gradual shift in focus on Australian beef in modern retail, the expanding fast food sector, and a fall in shipments from the US. Australian beef exports to Malaysia, Singapore, Thailand and Vietnam all increased to new records, with shipments to the Philippines the strongest in 14 years. Strong demand from the growing foodservice sector and reduced exports from other countries such as Brazil and Uruguay assisted Australia's trade.

Australian beef exports to Indonesia fell 18% during the same period, to 36,911 tonnes swt, largely influenced by the Indonesian government's restriction on beef import permits.

Labor's live export vote

ANIMAL rights campaigners are attending the Australian Labor Party's national conference, calling for the party to ban live animal exports according to a report in The Weekly Times.

The paper says that volunteers from the World Society for the Protection of Animals started with demonstrations last Friday outside the conference at the Sydney Convention Centre.

The group wants Labor to adopt a motion calling on the party to end live animal exports and transition solely to a chilled meat export trade. "We're going for an amendment to the Labor party platform," WSPA spokeswoman Jodie Jankevics said.

"We just can't guarantee animal welfare in the importing countries and the animals are subjected to a really long journey which compromises animal welfare severely," she added, claiming exporting domestically-slaughtered animals would also boost the local economy and jobs.

Radfords wins agribusiness gongs

GIPPSLAND'S largest domestic abattoir won two awards at the NAB Agribusiness Awards late last week at a ceremony in Melbourne according to a report in The Weekly Times.

R Radford and Son director Robert Radford won the Agribusiness Leader of the Year Award, while paper says that the company won the Environment and Energy Management Award.

Radfords, which is based in Warragul, is the only large scale domestic abattoir in Gippsland and the audience was told it is playing a pivotal role in the region's growing status as Australia's main certified organic red meat producer.

Mr Radford also contributes more than 300 hours a year to leadership roles within the red meat industry which includes being chairman of the Australian Meat Industry Council and Victorian Processors Council.

Graziers win battle to save the land

FORMER governor-general Michael Jeffery says that the Murray Darling Basin Authority plan and the carbon tax debate are side issues to how farmers manage the land says The Weekly Times.

Major General Jeffery wants to prove that, done well, natural farming methods satisfy the water needs of agriculture and the environment, improve farm productivity and lock away enough CO2 from the atmosphere to balance the nation's carbon account.

Natural farming is much more than boutique organics and it is as relevant for broadacre cropping as it is for grazing cattle and sheep. According to General Jeffery, there are pockets of excellence in every area of Australia's agricultural development.

Through the Outcomes Australia - Soils for Life program, which the federal Agriculture Department will part fund with $280,000, Major Jeffery is seeking to build a network of 20 best-practice natural-method farms to demonstrate its benefits.

NSW extends CSG moratorium

THE NSW government has extended until April next year a moratorium on the controversial fracking process used in coal-seam gas mining according to a report in The Weekly Times.

Resources Minister Chris Hartcher says it will be extended by four months pending the completion of an independent review. The announcement comes after a Senate committee handed down an interim report on CSG mining, recommending a moratorium on all future CSG projects until further research is carried out.

"The NSW government recognises significant recent community concern over the potential for pollution of aquifers by the coal seam gas industry as part of the fracking process," Mr Hartcher says.

"That's why we're proceeding with caution and making sure the proper frameworks are in place for the protection of our aquifers, our environment and our prime agricultural land."

Nationals draft 1 pc deal for farmers

FARMERS would reap a bonus 1 per cent of the value of any coal-seam gas which is extracted from their land under a new proposal by the Nationals according to a report in The Weekly Times.

The "default agreement", to put a floor on the income paid by CSG companies to the owners of land with gas wells, would offset access measures proposed by the Senate Rural Affairs and Transport Committee in its examination of the booming sector.

In an addendum to the joint report, Queensland Nationals Senate leader Barnaby Joyce and NSW Nationals senator Fiona Nash argue that a return of 1 per cent of the gross income from each gas wellhead to the land owner was "logical and fair".

"If 99 per cent is shared between the state and the miners then 1 per cent for farmers should hardly be deemed unreasonable for an asset that is extracted from their place and an asset that historically in many instances they owned," the senators said.

Laws to protect Queensland's best farms

THE Queensland parliament has passed laws that protect the state's best farmland from mining with the legislation, which The Weekly Times says is the first of its kind in Australia, being passed last week.

The Strategic Cropping Land Act 2011 will ban mines that make the land unusable for farming. The paper says that the laws are expected to come into force on January 30 next year.

Queensland Natural Resources Minister Rachel Nolan said the laws support mining in the right places and ensure the best farming land is protected for future generations. "The resources sector is growing in Queensland, and the laws passed today show our government's commitment to sustainable growth," Nolan said in a statement.

She said the government had worked closely with representatives from the agriculture, resources and urban development sectors, and local government and natural resources management groups to get the balance right.

Sheep ID trace a failure

THE Australian sheep industry's identification scheme has been heavily criticised in a major new report. The Weekly Times says the report was last week made public after being kept secret by Agriculture Minister Joe Ludwig.

The report said the NLIS for sheep and goats was not up to scratch, with the sheep industry's mob-based and largely non-electronic systems "not capable of meeting the nationally agreed standards for livestock traceability".

"This is particularly concerning given the role sub-clinically infected sheep may play in moving the disease around the country," author Ken Matthews said. Traceability was the "next most important control after detection" in a foot and mouth outbreak,

His review recommended the industry move towards "satisfactory traceability arrangements", and that options and recommendations be presented to the Primary Industries Ministerial Council within 12 months.

EU key to trade growth

DEMAND for European Union-accredited cattle is expected to spike as Australia continues to increase its share of the lucrative beef market according to a report in The Weekly Times.

Accredited herds are on the rise - Department of Agriculture, Fisheries and Forest figures show 2482 properties are accredited under the European Union scheme, 300 more than the previous year.

As recently as last week, at Warrnambool, agents quoted an 18c/kg liveweight premium for EU-accredited heifers. Even with the increase, the number of accredited cattle is seen as a major stumbling block for an increasing share of the EU trade.

While the Hilton (mostly grassfed) quota has always been close to filled, the grainfed quota offers Australian beef room to grow. The EU is scheduled to increase the quota from 20,000 tonnes to 48,200 tonnes next year. As Australia is one of the "most preferred nations", our processors can access this.

Beef over Korean market

Australian cattle producers are now pushing the Federal Government hard to act quickly and save the $630 million Korean beef market according to a report in The Weekly Times.

Last week, Korea and the United States signed a free-trade agreement, which will see tariffs on US beef slashed. At the same time a similar deal between Australia and Korea has stalled.

The FTA between the US and Korea will see tariffs gradually reduced from 40 per cent to zero within 15 years. Last year, Australia exported 124,160 tonnes of beef to Korea, making it Australia's third-biggest beef market, behind Japan and the US.

However, already, the US is muscling in on traditional Australian beef customers. MLA figures show Korean imports declined in October by 1 per cent, with 12,367 tonnes exported for the month.

Tonga Station steams away

THE pastures on Tonga Station, near Mansfield, Victoria, where Tony Scott manages 900 Angus females, are "steaming away" after a cold winter according to a Weekly Times feature report.

In fact, "steaming away'' is an apt description for the pace with which much of the work on the property is carried out, and the progress the herd has made since becoming a Team Te Mania member in 2005.

Owned by Mark and Louise Calvert-Jones, the commercial herd has grown from 550 females to join more than 900 spring-calving cows and heifers this year, all to Te Mania Angus sires.

Tonga Station was already using Te Mania Angus bulls but, since joining Team Te Mania, Mr Scott has witnessed improvement in several key areas. "Calving is easier and our frame is getting better and better every year,'' Scott said.

"Generally, we are seeking a bigger frame, but that's not all we are chasing, we're also after the right structure; decent-sized hips, straight across the back, good feet, the whole package.'' Incorporating top estimated breeding values "goes without saying'' when using Te Mania sires, and the proof is in the cattle, he said.

Grass is greener with wet season spelling

Research by the NT's Department of Resources (DoR) indicates that wet season spelling is the most effective way to restore pastures to a more productive state says online news service beefcentral.com.

Like a car or road train, pastures need some regular repair and maintenance to keep them running at their best. Continuous grazing year after year puts a lot of pressure on preferred grasses which can be lost from paddocks.

DoR's Dr Dionne Walsh says having proper land management plans in place helps to determine when to spell and how it's done. "Most producers who use spelling do it to improve the bulk and composition of their pastures and/or improve land condition.

"To improve land condition, spelling needs to occur during periods of active pasture growth, and that is the wet season, with the early part of the wet season being the most critical time to spell."

Big challenges remain for local butchers in modern retailing

The newly-elected head of Australia's 3000-strong independent local butcher network has experienced the challenges behind the retail meat trade from both the small country town and metropolitan city perspective says online news service beefcentral.com.

Queensland career butcher Ray Kelso was last weekend elected chairman of the Australian Meat Industry Council's National Retail Council, representing butchers and independent supermarkets. He succeeds long-time chairman, Kerry Melrose.

Kelso operates two retail shopping centre butcheries in Brisbane, both "under the noses" of Woolworths and Coles outlets. He says modern butchers not only need good knife skills and plenty of savvy when it comes to marketing their products to increasingly discerning consumers, but they also need to be good business managers.

He began his lobbying career in a small local butchers' lobby group, which 20 years ago elected him onto AMIC's Queensland State Council. He has since served on the national AMIC retail council for the past 15 years.

Momentum shift in our grinding beef trade to the US

A shift in momentum is happening in Australia's grinding beef trade into the US, driven by a historically low US beef herd and an anticipated shortage in domestic beef production heading into 2012 says online news service beefcentral.com.

October beef exports from Australia to the US for the first month this year exceeded volumes consigned for the same month in 2010. That trend is likely to be repeated in trade volumes for the month of November, about to be completed.

Analysts, Steiner Consulting anticipates Australia's November monthly trade to the US will reach close to 17,000 tonnes, equalled only by volumes seen in June. That estimate looks reasonable, judging by DAFF's export data updated daily.

The recent lift in exports to the US relative to last year goes against the overall trend seen in 2011, where shipments have been down 26pc year-to-date compared with last year. The US for Australian beef have been challenging in 2011 due to the appreciating A$, competition from other markets and weak US consumer spending.

Diuron use restricted by APVMA

The Australian Pesticides and Veterinary Medicine Authority has restricted the use of herbicide diuron until March next year while it considers new information contained in public submissions says online news service beefcentral.com.

APVMA has been reviewing diuron use since 2002 and has applied an interim suspension with limited use until March 2012 to provide more time for it to consider new information submitted by industry and agribusinesses during the review period.

Despite the interim suspension order still being in place, graziers can continue to control prickly acacia and mimosa bush in western bore drains, and grain growers can still apply diuron to grain crops.

A few years ago, diuron was blamed for mangrove and seagrass dieback along the Queensland coast. Research later uncovered the cause of the dieback was due to flooding and burial of the aerial mangrove roots by sediment.

Queer decision on Q fever

REGIONAL health shadow minister Andrew Laming says the government is "nickel and diming" the health system following its decision to charge for access to Q fever vaccines says The Land.

Under the changes, Q fever vaccines will only be available in an emergency. "It's a bit late then" said Dr Laming. "A functional government provides for its citizens. An economically-dysfunctional one cuts services. One guess what we have."

The paper says that at-risk employers and workers have had publicly funded access to this protective vaccine since the Coalition initiated the program back in 2007 and it has been used by thousands.

This decision hits veterinary personnel; stockyard workers; farmers; shearers; animal transporters and tannery workers; laboratory workers handling potentially infected veterinary samples or visiting abattoirs; as well as those who cull and process kangaroos.

Russians not in a hurry on roo meat

A report in the Queensland Country Life says that talk of an imminent recommencement of the kangaroo trade to Russia is premature, according to the Australian industry representatives.

United Game Processors (UGP) managing director John Burey said he received an email from a Russian-based livestock consultant and former customer explaining the latest meeting with Russian quarantine officials gave no commitment to lift the ban.

"Russia's got the licence and when they start saying something different we will get excited," Burey said. "The ambassador has been involved in this issue in the past and the Russians have come out and inspected our facilities.

"But there are numerous stories going around and nothing at all ever happens. Over the years the verbal reports from Russian and Australian Governments is positive about the lifting of the suspension. But the written information you receive is always a lot more guarded and negative," he said.

Call for thief to return Proston cattle

Beef producer Peter Kropp is calling on the people who stole five cattle - two Charolais cows and three grown Charolais heifers - from his Proston property to return the animals.

According to a report in the Queensland Country Life, Mr Kropp said that the cattle had been taken from his property at 3357 Wondai-Proston Road, Proston.

The animals are each fire branded with the symbols PK followed by a triangle.

Each had an NLIS tag. The paper says that the theft has been reported to Queensland Police.

Anyone with information should contact Kingaroy Police (07) 4160 4900.

Livestock workshops assist Victorian producers

The VFF Livestock Group has launched a series of Animal Health Extension events designed to provide producers with a resource for best-practice farm and animal management says Stock and Land.

Chris Nixon, VFF Livestock Group President, said the program has already been successful in its initial stages. "We started it six months ago and it's been really rewarding to see the benefits we have been able to provide producers," he said.

Last week, the Livestock Group held its first Pestivirus Management Workshop. "It was designed to assist producers in becoming more strategic and methodical in how they manage Pestivirus, an endemic disease in cattle," Nixon said.

Producers and farm managers who are interested in the 2012 Animal Health Extension programs run by the VFF's Livestock Group are encouraged to contact Charlotte Fox at the VFF on 1300 882 833 or email cfox@vff.org.au.

MLA UPDATE

Friday daily livestock summary

02 December 2011

Roma Prime throughput was slightly higher and a few extra buyers pushed the market dearer. Heavy grown steers topped at 203¢, and averaged 3¢ higher on 202¢/kg. The heavy C4 bullocks were in demand, with prices rising 2¢ - to 202¢/kg. Heavy D4 cows made to a top of 183.2¢ and mainly sold around 172¢/kg.

Numbers improved at Armidale, with producers keen to sell while the market is strong. Light yearling steers mainly sold at 223¢ and were slightly cheaper, while the medium weight pens generally made 216¢/kg. A high proportion of yearling heifers sold to restockers at 225¢, while the few to the trade were 5¢ dearer on 194¢/kg. Heavy cows were back slightly, as most pens sold from 165¢ to 170¢/kg.

Supplies rebounded at Dubbo and some extra competition meant most categories were dearer. Medium yearling steers to feed were 3¢ higher on 225¢, while the heavy pens mainly sold at 214¢/kg. Heavy yearling heifers to processors made to 221¢ and were slightly dearer on 207¢/kg. Grown steers were firm on 197¢ and heavyweight cows held firm on 165¢/kg.

At the conclusion of Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 5¢ higher for the week on 404.75¢/kg cwt - the highest December figure on record. Trade steer prices were 5¢ higher on 212¢ and feeder steers remained on 219¢/kg lwt. Heavy steer prices finished 2¢ higher on 197¢ and medium cow was 5¢ dearer on 154¢/kg lwt.

Both sheep and lamb numbers were lower at Wagga, with harvest taking priority. Young trade lambs were up to $7 dearer, selling from $132 to $139/head and averaging around 545¢/kg cwt. Heavy older lambs were mainly firm on $148/head or 535¢/kg cwt. Most mutton pens were dearer as the heavy Merino ewes averaged 365¢/kg cwt.

Sheep numbers climbed at Hamilton in a excellent quality yarding, with some good quality wether pens presented. Medium weight Merino ewes to the trade were around $20 dearer on $99/head, as most pens to slaughter averaged form 340¢ to 355¢/kg cwt. Heavy Merino wethers topped at $125/head and settled on 344¢/kg cwt.

After Thursday's markets sheep and lamb prices were showing a dearer trend, with the eastern states trade lamb indicator gaining 27¢ - to 508¢/kg cwt. Heavy lamb prices were also stronger, as prices were 20¢ higher on 504¢/kg cwt. The mutton indicator finished 14¢ dearer on 363¢/kg cwt.  

US buyers cautious after Thanksgiving

02 December 2011

In-market prices for imported beef were steady to lower in the US this week, with offers from Australia still higher than most buyers were willing to accept (Steiner Consulting Group). Traditionally, demand for grinding beef picks up following the Thanksgiving holiday, but this has been slow to develop this year, also feeding the caution in the market. The lower trend in prices was driven mainly by cheaper offerings from New Zealand traders, well below Australian levels.

The imported 90CL beef price slipped 1.5US¢ to 199US¢/kg CIF this week, which, combined with the appreciation of the A$ in recent days, saw a 6% fall in A$ terms, to 400.4A¢/kg FAS, still 10% above the same week last year.

Wet start to summer heats up the market

02 December 2011

The wet finish to November for the eastern states has been reflected in cattle prices this week, and with further heavy falls forecast for Queensland in early December, the ability to deliver cattle to market will be very closely monitored in coming weeks.

Signalling northern processor supply concerns for the remaining weeks of 2011, southern Queensland direct to works prices kicked on last week, with heavy steers (300-420kg cwt) averaging 365¢/kg cwt - up 10¢ on last week and 13% above the corresponding week last year. Reflecting the impact of the rain on supply regions, while NSW direct to works quotes increased marginally on last week, prices in Victoria were steady, to slightly lower.

With reduced offerings at almost all major selling centres, MLA's NLRS reported cattle yardings declined 9% this week, underpinned by Queensland's lowest weekly offering since early July. With very strong competition for the limited offerings from all buying sectors, national average prices were up across almost all categories, with cows (400-520kg lwt) averaging 7¢ higher, at 314¢, while heavy steers (500-600kg cwt) jumped 9¢, to 360¢/kg cwt. The EYCI finished Thursday at 404.75¢/kg cwt - up 4¢ for the week.

The largest lamb yarding in almost 12 months was not enough to dint average saleyard prices this week, with the exception of restocker and feeder lambs. Offsetting the influence of the surge in numbers, especially in Victoria at 116,154 head for the week, was substantial rain through central and southern NSW, along with most regions of Victoria. Trade lambs nationally averaged 27¢ higher on last week, at 507¢/kg cwt, fuelled by a jump of 28¢ and 33¢ in Victoria and SA, respectively.

Cattle demand surges

02 December 2011

Competition in the physical markets increased after the recent wet weather, with restocker, processor and feeder buyers scrambling to secure numbers this week. The rain had an effect on several fronts, mainly by reducing supplies and also giving another confidence boost to producers looking to buy cattle.

The widespread rain and the chance of further downpours in the eastern states prompted processors to increase over the hook (OTH) rates by up to 15¢/kg cwt. Feeder buyers are also attempting to place additional numbers onto feed prior to Christmas, with the challenge of sourcing suitable feeder cattle ongoing.

Restockers are still showing confidence in cattle markets, purchasing around 55% of light yearling steers this week. The wet end to spring has rejuvenated pastures, which should see restockers continue to underpin the young cattle market. The combination of the increased competition and tighter supplies contributed to the Eastern Young Cattle Indicator (EYCI) hitting 404.75¢/kg cwt after Thursday's markets.

Beef exports hit three-year high

02 December 2011

Australian beef and veal exports reached their highest level since October 2008 during November, totalling 89,747 tonnes swt, fuelled by increased beef availability early in the month, the lower A$ and improved exports to Japan and the US (Department of Agriculture, Forestry and Fisheries - DAFF).

While exports were up 1.3% year-on-year, it was the largest monthly volume since October 2008's 93,872 tonnes swt, and took exports for the first 11 months of 2011 to 867,140 tonnes swt, 3% above the same period in 2010.

Assisting the higher volume for November was a rapid start to the month, which was made possible by increased beef production in late October and into the first week of November. Indeed, after the first 10 days of November, exports were on track to be one of the highest months on record (the highest monthly total on record was set in November 2006 at 94,653 tonnes swt). However, a gradual reduction in available cattle throughout the final three weeks of November curtailed any prospects of a record month, with the recent rain likely to further impact available beef supplies during December.

Shipments to Japan, at 33,519 tonnes swt, was the highest Australian monthly volume since the corresponding period last year (36,050 tonnes swt), and almost equal to the November average for the past five years. Steady demand from the fast food and processing sectors again underpinned demand for frozen grassfed beef (17,245 tonnes swt), which increased 5% year-on-year. While the lower A$ may have assisted demand for chilled grainfed beef during November, with volumes increasing 17% on the previous month to 9,099 tonnes swt, shipments were still down 5% year-on-year.

Like October, November registered a large year-on-year increase in volumes to the US, but off an extremely low base. Exports for November increased 80% on last year, to 16,711 tonnes swt - but were still 16% below the five-year average.

Korea, Taiwan and the Middle East continued their stronger 2011, with exports for November up 4%, 22% and 19%, respectively, on the same period last year. Shipments to Korea for 2011 were up 20% year-on-year, and with one month remaining, could exceed 140,000 tonnes swt for only the third year on record.

November cattle slaughter tight

02 December 2011

Average weekly eastern states cattle slaughter during November as reported by MLA's NLRS was stable compared with the previous year. However, cattle throughput was again historically tight, with average weekly cattle slaughter 4% below the five-year November average.

Average cattle slaughter in Queensland was 1% above the previous year and steady when compared with the five-year average. Cattle turnoff was strong early on in the month, with producers moving cattle with the dry conditions. The wet weather in southern regions at the end of the month impacted cattle movements, which in turn forced processors to lift direct to works rates in order to attract numbers.

Average weekly NSW cattle slaughter was stable compared with November 2010, however, numbers fell 10% on the five-year average. The favourable seasonal conditions and the continued effort to rebuild herds influenced turnoff. It was a similar case in Victoria as slaughter was 16% below the five-year average. In contrast, SA cattle slaughter increased 9% on the five-year average, and throughput lifted 10% above October levels. 

Most of the supply pressure for processors has stemmed from the current excellent pasture conditions, which have given producers the option of holding onto stock. Producers this year have been able to turn off cattle when they are finished, in contrast to previous years when drought conditions dictated selling. Additionally, the wet weather and expanding grain harvest also impacted cattle movements, despite the strong prices in the physical markets and high direct to works rates. 

In response to the tighter supply of prime cattle, processors across the eastern states increased direct to works rates and competed at interstate physical markets. During November, medium weight (220 - 260kg cwt) yearling steers averaged 334¢/kg cwt - 10% higher year-on-year. Heavy grown steer (300 - 420kg cwt) rates also benefited from the additional competition, averaging 9% above November 2010, at 341¢/kg cwt.

Wet run in the east continues

02 December 2011

The past week has seen heavy rainfall across Victoria, NSW and Queensland, with certain regions of NSW recording rain in excess of 200mm. 

Solid falls were also recorded for central Queensland and with further rain expected in the coming week; conditions look favourable for graziers moving into summer.

However, further heavy falls across the cropping regions of NSW and Victoria are expected to lead to further crop downgrades.

Spring wholesale wrap

02 December 2011

Wholesale prices have remained largely steady over spring, with beef and lamb carcase prices mostly stable. This has been consistent with subdued consumer demand and relatively stable physical market beef and lamb prices. Although carcase prices have remained stable, the warmer weather has meant that demand for high end loin cuts has increased, while demand for traditional winter cuts has slowed, with prices adjusting accordingly.

Young beef carcase (160-180kg C-D muscle) prices were steady throughout spring, starting September, averaging 415¢/kg cwt. Although briefly dropping to 410¢ through mid-September, prices finished November at 415¢/kg cwt. Flat consumer demand and stable physical market prices for beef have meant that carcase prices have remained within a narrow band. Physical market prices were strong throughout spring, evidenced in the stable nature of the Eastern Young Cattle Indicator (EYCI) throughout the three month period, with the EYCI starting spring at 398.25¢ and finishing at 404¢/kg cwt. With the onset of warmer weather and the barbecue season, prices for traditional summer cuts have increased. Grass-fed carton rump prices started September at 680¢, increasing steadily to 750¢/kg cwt in the last week of November. Winter cuts have offset the rise in high end loin cut prices, with grass-fed carton chuck prices easing from 540¢ in the first week of September, to 490¢/kg in the last week of November.

Lamb prices have followed a similar trend to beef. Trade weight (20-22kg cwt) lamb prices averaged 620¢ in the first week of September, briefly dropped to 590¢ through late September, before ending November at 620¢/kg cwt. The Eastern States Trade Lamb Indicator (ESTLI) started spring at 504¢, and finished November at 506¢/kg cwt, a good indication of relatively stable physical market. Although carcase prices have been steady, adjustments in broken sales have occurred, as demand for summer cuts increases. Carton short loin prices increased as spring progressed, moving from a starting price of 900¢ to 930¢/kg cwt. Compensating for this increase has been a reduction in demand for forequarters and more traditional winter cuts, with prices for forequarters losing 50¢, finishing November at 490¢, back from 540¢/kg cwt.

Manufacturing demand for pork was strong throughout spring, compensating for flat retail demand. Tight supplies have ensured that prices have remained strong, with DF pork 45-60kg ending November at 440¢, up from 415¢/kg cwt at the start of September. This trend is typical as the Christmas season is a peak time for pork prices.

Hide demand missing

02 December 2011

Local hide prices were again lower, with several contributors lowering rates due to softening international leather demand.

The lower A$ has helped green hide prices remain firm.

Leather stockpiles have reportedly lifted, and manufacturers have decreased rates in order to move product.

Swings and roundabouts for A$

02 December 2011

The A$ continued its volatile ride this week, jumping back above parity, as an agreement between several of the major reserve banks added some much needed reassurance to global financial markets. After falling below 97US¢ last week, the A$ rebounded beyond 102US¢ in recent days - unwelcome news for Australia's red meat exporters.

Reportedly, the recent stint of the A$ below parity assisted demand for Australian beef, with shipments for November the highest in three years. For November, the A$ averaged 100.2US¢, which was the third lowest monthly average for 2011 and 8% below the highest, set at 109US¢ throughout April.

Reflected in the rollercoaster ride of the A$ in recent weeks, the outlook for global economic growth remains murky, heavily hinged upon conditions across many of the major advanced economies. According to the latest Organisation for Economic Co-operation and Development (OECD) Economic Outlook, released this week, economic growth in 2012 will be inhibited by a recession across the Euro region, while economic growth in both the US and Japan will be constrained.

According to the OECD, economic growth for the US in 2012 is forecast to average 2%, up from 1.7% in 2011. On a positive note, growth should continue into 2013, reaching 2.5%. After an extremely tough 2011, with growth contracting 0.3%, the Japanese economy is forecast to also grow 2% in 2011. For the Euro area, growth in 2012 is forecast to be only 0.2%, down from 1.6% in 2011, but increasing to 1.4% in 2013.

In contrast to other advanced economies, Australia's economy is expected to expand by 4% in 2012, up from 1.8% in 2011. However, forecasts for economic growth in China and India continue to overshadow almost all other nations, with China forecast to expand by 8.5% in 2012, with India at 7.2%. Robust growth in 2012 is also expected for Russia (4.1%), Indonesia (6.1%) and Brazil (3.2%).

Households spend less in Japan

02 December 2011

With the strong yen and global economic problems casting a shadow over the Japanese economy, the average spending by Japanese households fell 0.4% year-on-year in October - the eighth consecutive monthly decline (the Mainich Daily News).

A fall in consumer prices was also recorded during the month, the first monthly decline since June. The country's jobless rate rose to 4.5% during the month (up 0.4% from September), on the back of the global slowdown and the fading economic impact from the post-earthquake reconstruction.

In a slightly more positive sign, beef consumption at home during October improved 3% year-on-year, to 540g per household, with the increase assisted by retailers' low price promotions.

In the Australian beef export market this week, firm bids from international markets continued to flow in, limiting opportunities for Japanese buyers to secure products at prices they hoped for. Versatile and popular items such as silverside and 85CL were particularly hard to source, as the gap between Australian prices and Japanese market expectations widened due to Japan's deflationary and fragile economy.

Korean beef buyers somewhat hesitant

01 December 2011

Korean buyers were reportedly more hesitant than usual to order Australian beef for coming months this week. Some of the issues currently impacting the red meat trade with Korea seem to be sluggish Korean consumer demand and the volatile A$, along global economic uncertainty.   

Due to low trading activity in the Korean wholesale market, average prices for most imported beef cuts remained either steady, or slightly declined on last week (HKJM). Average prices for domestic Hanwoo carcases, beef cattle and pigs all decreased on last week. 

Australian beef exports to Korea in November remained strong, at 12,580 tonnes swt - increasing 4% on November last year and up 20% year-on-year for the 11 months to November (DAFF).

Livestock prices expected to ease - NAB

01 December 2011

While livestock prices have maintained historically high levels throughout 2011, particular for lamb, both the cattle and lamb market is expected to ease in 2012 - according to the November National Australia Bank (NAB) Rural Commodity Wrap.

According to the report, the EYCI is expected to ease to 370ȼ/kg cwt by June 2012. Underpinning the NAB's forecast is expected higher yardings, as well weakening global economic conditions. Despite a favourable seasonal outlook driving restocker demand and robust export demand given declining global stocks, average lamb prices in 2012 are expected to fall 7.3% in year-on-year average terms.

Beef exports to South Asia driven by global supply

30 November 2011

Beef exports to South East Asia and Greater China (SEA & GC) from major suppliers in the world showed distinctive trends during January to October. Directly driven by strong demand in the region and increased supply available for exports, shipments from Australia, the US, Canada and India increased compared with 12 months ago. Meanwhile, Brazilian and New Zealand volumes to the region decreased.

Indian beef exports to the region during the 12 months to April 2011 (latest data available) increased 11% year-on-year to 248,691 tonnes swt. Although having continued to fill the majority of demand for low-priced beef imports in SEA & GC, India has shifted its export focus from SEA & GC to other markets in the 12 months to April 2011. About 35% of total Indian beef exports were shipped to SEA & GC over this period compared with the 45% registered a year ago.

US beef exports to SEA & GC during the first nine months of 2011 were assisted by the weak US$, and increased 17% year-on-year, to 100,703 tonnes swt. The US sent about 15% of its total beef exports to SEA & GC during this period. Canadian beef exports to the region during January to September 2011 increased 17% year-on-year, to 16,592 tonnes swt, although relatively small compared to shipments from other countries.

Brazilian beef exports to the region during January to October decreased 8% year-on-year, to 70,108 tonnes swt, directly influenced by the ongoing high prices and strong Brazilian domestic demand. About 10% of Brazilian beef exports were shipped to SEA & GC during this period. New Zealand also exported 17% less beef to SEA & GC during January to October, at 55,389 tonnes swt, following a fall in total exports.

Following a 5% rise in Australian shipments to the region over the 10 months to October 2011, to 114,073 tonnes swt, exports of Australian beef to SEA & GC over the first four weeks of November have proved strong, totalling almost 15,000 tonnes swt. As buyers prepare for the coming seasonal high consumption period, the Australian beef trade with the region is expected to reach a new record in 2011.

US beef imports into Japan increase by 37%

30 November 2011

Japan imported 43,795 tonnes swt of beef in October, up 31% from the low volumes registered last year (data by the Ministry of Finance, Japan). Imports from the US increased 37% year-on-year to 10,131 tonnes, with the 10 months to October total at 98,573 tonnes, up 40% from the same time last year (and 44% of the pre-BSE level in 2003).

The weak US$ against the Japanese yen, particularly assisted their chilled beef business, with the US accounting for 31% of total chilled imports during the month (up eight percentage points from a year ago), at 5,406 tonnes. As a result, Australia's share in the imported chilled beef market fell eight percentage points from last year to 63%, or 10,898 tonnes.

Broken down by storage and cut category, the average price of US beef was extremely competitive against Australian offerings during the month, despite the US age limitation protocols and its grainfed orientation. The US chilled and frozen loins averaged lower than Australian, while ‘frozen briskets' average prices were very close.

The US and Japanese governments have initiated a process in mid-November to review the current import protocols of US beef into Japan.

NLIS not up to scratch: review

A MAJOR new report on Australia's ability to cope with foot and mouth disease has slammed the sheep industries identification scheme according to a report in The Weekly Times.

The report, by former National Water Commissioner Ken Matthews, has now been made public after being kept secret by Agriculture Minister Joe Ludwig and in the 11 recommendations made to improve Australia's preparedness to cope with a FMD outbreak, sheep traceability features heavily.

Matthews says the current tracing system for sheep and goats is not up to scratch. "The review team found the sheep industry's current mob-based and largely non-electronic systems are not capable of meeting the nationally agreed standards for livestock traceability," he says.

"This is particularly concerning given the role sub-clinically infected sheep may play in moving the disease around the country." Matthews says traceability is the "next most important control after detection" in a foot and mouth outbreak.

ADF to discuss bobby calves

THE Australian dairy industry is preparing to fight a major attack from animal rights groups over its treatment of young dairy - or bobby - calves according to a report in The Weekly Times.

The Australian Dairy Farmers annual general meeting in Melbourne has discussed how the industry can best protect the welfare of surplus male calves, now usually slaughtered in abattoirs when just five days old.

The Animals Australia advocacy organisation has branded the killing of 700,000 "bobby" calves a year the "dark secret" of the dairy industry and has launched a campaign, backed with advertisements in city newspapers, claiming these "unwanted, bewildered babies" are taken from their "grieving mothers" at birth.

Much of the furore is focused on the time-lag between the baby calves leaving the farm and being killed (with a mandatory stun gun) in the closest abattoir, which can mean the calves go without food or milk for more than a day.

Push to end live exports

LABOR will debate on phasing out live exports at its national conference next month but VFF president Andrew Broad told The Weekly Times global animal welfare was "significantly improved by Australia maintaining a presence in the trade".

A motion to end the exports and require mandatory stunning of animals until exports are wound down will be put at the national conference. However the motion is expected to be easily defeated, with only a core of left-wing MPs supporting it.

Broad said most operations were working towards stunning all animals. "That's the Rolls Royce, but let's just keep plugging away at lifting standards," he says. He said he was "unsurprised" at the motion being put and that a group of determined MPs had continued to make live export an issue.

"These people don't give up," Mr Broad said. "I've heard farmers say 'What's the value of the VFF?'. "When you speak to people in parliament, you find out we do a lot more (than some farmers think on issues such as this)."

Time to beef up herds

HIGH young cattle prices, bumper spring and new markets add up to a positive outlook for beef. The Weekly Times says after a decade of drought, most cattle-producing regions are experiencing a good season and forecasts of above-average rain.

Herd rebuilding is under way, coming from a low point last year, with cow numbers expected to reach 29 million by 2015. Growth will be driven by the nation's cattle-producing regions of northern WA, NT and Queensland.

But drought-induced debt continues to heavily influence enterprise decisions. And sluggish trade to Japan, an inconsistent Australian dollar and US competition have affected heavy cattle prices.

MLA chief economist Tim McRae said live-export trade uncertainties would continue to haunt northern producers. "The Eastern Young Cattle Indicator hit a record high in March of 424.2c/kg and, since then, we have had a tumultuous ride,'' McRae said.

Hold on for the grinding beef juggernaut

Driven by a powerful set of supply, demand and economic factors, the grinding beef market is gaining momentum as arguably the dominant force in world beef trade in 2012, if not already, says online news service beefcentral.com.

There is a view frozen manufacturing is driving beef prices, narrowing the price gap between exports of chilled beef in North Asia and North America and the frozen manufacturing/cheap cuts trades to Russia, China and the Middle East.

As indicated in Beef Central's home-page "state of the industry" graphs, Australian 90CL beef to the US increased a further A14.7¢/kg, to 425¢/kg FOB last week - 23 per cent above the same time last year, and close to 22 per cent since trade in June.

These are the highest prices seen for lean grinding beef in more than three years.

The all-time record price, in A$ terms, was in September 2001, when the 90CL market hit 481c/kg FAS.

CDFC pays $1m to owners of cattle stranded by livex ban

The Cattle Disease Contingency Fund has paid more than $1 million to the owners of 11,000 cattle that were stranded in northern export yards when the Federal Government banned live exports to Indonesia says online news service beefcentral.com.

The payments follow the tentative resolution of concerns between the board responsible for the fund and the Australian Live Exporters Council over the question of whether assistance paid to exporters should be reimbursed.

The board of the CDFC made $5m available during the ban to assist owners cover the costs of feeding, holding and managing them. The CDCF is a $20m emergency fund raised from producer levies to deal with animal health, disease and welfare crises.

The decision to fund assistance payments from the CDFC was seen at the time as win-win solution to a tense stand-off that had developed between agriculture minister Joe Ludwig and Meat and Livestock Australia over compensation for affected cattle owners.

Wanted: 6000 Angus heifers for Russia

Elders has instigated a six-State search for Angus heifers to fill a new export order to Russia says online news service beefcentral.com.

Fresh from shipping 6000 Angus heifers to the Baltic nation earlier this month, Elders has this week secured a back-to-back deal to supply a similar number to the same customer.

Elders national livestock manager Chris Howie said the company had not expected a new order until later in the new year. "However on the quality of heifers we delivered, we've had opportunity to supply another shipment by the end of January," he said.

The last consignment was filled mainly out of southeastern South Australia, Victoria, Tasmania and the NSW Riverina. However Elders will look to suppliers across the country to fill this order.

Softer dollar helps maintain kill tally

Further softening in the Australian dollar has been one of the contributing factors behind a rise in Queensland slaughter cattle grid prices last week says online news service beefcentral.com.

From a recent high above US107c in late October, the A$ has steadily eroded in value this month, reaching US98.54c during trading this morning. Export processors have adjusted northern grids upwards as a result.

Both JBS and Teys yesterday lifted their southern Queensland grid price on all cow and ox bar MSA, which rose earlier. Best ox are now +10c from where they sat a fortnight ago. Teys Australia yesterday was offering 365c/kg for milk and two-tooth heavy steer and 360c for four-tooth.

The seasonal gap between northern and southern meatworks grid prices has continued to widen, as supply of cattle in southern regions continues to build momentum. Many southern grids fell 5c at the end of the week due to supply pressure.

Covering all bases at Wallah

SUBTROPICAL pastures, an on-farm feedlot, rotational grazing, irrigation and genetics have lifted beef production at the Manchees' Narrabri farm, Wallah, by 250,000 kilograms (70kg a hectare) since 2002 says The Land.

This year they will turn out more than 500,000kg of beef. And in the pipeline are bigger plans, such as a manure digester for the feedlot to convert waste - presently used as raw fertiliser - into biodiesel, electricity and natural fertiliser for the farm.

Runners-up in this year's Farmer of the Year, the Manchees said the feedlot was not only used to wean and finish stock, but was key in allowing pastures to rest, as well as cows to regain condition after weaning, through freeing up paddocks.

The Manchees have established 1214ha of improved subtropical pasture since 2000, which, together with the rotational grazing, has allowed them to increase cow numbers by 70 per cent on drought reduced figures, or 50pc on traditional rates.

Online survey on leasehold land

PRIMARY producers are being urged to rally behind efforts to keep leasehold land rents at realistic levels by participating in an online survey according to the Queensland Country Life.

The paper says that the survey of landowners, which will close in early December, is being conducted by AgForce to develop policy in preparation for a government review into leasehold rents.

The data being collected has never been gathered before, and AgForce believes it is vital for all parties to understand what rural rents mean for rural businesses. AgForce CEO Robert Walker said landholders could send a clear message to government about the impact high land rents could have on farm profitability just by completing a survey.

"The majority of grazing land in Queensland is leased by landholders from the government, with farmers and graziers making annual rent payments based upon the unimproved value (UV) of the property," Walker said.

New-look young producers' forum a success

KATE Boshammer admits she loved not being in charge of this year's Young Beef Producers' Forum (YBPF), which some 150 delegates attended in Roma last week says Queensland Country Life.

The paper says that it was the first time in four years the 23-year-old had not organised the event, after the national Future Farmers' Network (FFN) took on organisational duties this year.

Kate and her husband Justin Boshammer - who own Sandon Glenoch Angus as well as growing melons near Chinchilla - have been involved in all seven YBPFs, which Boshammer and Alastair Brown established in 2005.

Brown was a beef extension officer with the Department of Primary Industries and Mr Boshammer was the Queensland Angus Youth chairman. Mrs Boshammer said the decision to transfer organisation to the FFN was about securing its future.

Full on optimism at Smithfield

WITH 19,000 head on feed and not an empty pen in sight, Queensland Country Life says the Smithfield feedlot at Proston is humming along at full capacity and looking forward with optimism to the year ahead.

In celebration of its 25th year of operation the feedlot held a special open day which according to the paper had attracted a crowd of more than 150 suppliers, cattle producers and grain producers.

Smithfield managing director Jason Shearer-Smith said he was "reasonably optimistic" about the potential for upward pressure on beef prices in the coming year with a tightening world cattle supply.

"The US is shortening up with their cattle supply and throughout ... they (cattle numbers) are in decline," he said. "If demand can improve slightly we are in a pretty good position. We have good quality grain at reasonable prices this year."

New boss to make MLA's role clear

ROB Anderson, the new Meat and Livestock Australia (MLA) chairman, says the biggest challenge the organisation faces is educating the industry on its role as a service delivery company according to Stock and Land.

He says for a whole host of reasons MLA's role has become blurred over the years to the point that many see it as a representative body. But it's a challenge Anderson - who runs a 2800-hectare cattle operation - feels he and his board can meet.

High on his agenda is dispelling the myth MLA is primarily a farmer representative body. Having heard comment it is "just trying to sidestep responsibility", he said the company's responsibility was clear as dictated by Canberra for an R&D organisation.

"My vision is to ensure that MLA continues as the meat industry's marketing and development service provider; we want to focus on that and not get involved in political issues," Anderson said.

Are you EU ready?

WITH the introduction of a grain fed quota to access the European Union (EU) beef export market, the demand for EU accredited cattle has increased according to a report in the Stock and Land.

The Australian Quarantine Inspection Service (AQIS) administers the EU Cattle Accreditation Scheme designed to maintain market access into Europe. The scheme requires cattle to be lifetime traceable and be hormonal growth promotant (HGP) free.

The paper says that the Department of Primary Industries (DPI) is offering targeted workshops to help producers understand and meet EU accreditation traceability requirements.

Workshops will be run on a needs basis. For further information or to register your interest in attending an ‘EU ready workshop' please call Sam Ellis on 0408 922 712 or email sam.ellis@dpi.vic.gov.au.

MLA UPDATE

Friday's daily livestock article

25 November 2011

Throughput was back at Dalby and the yarding sold to improved competition. Light yearling steers to feed and restock were up to 15¢ higher, selling from 211¢ to 258¢/kg. Heavy yearlings to feed mainly made 215¢, while the light heifers to restock averaged 230¢/kg. Heavy grown steers were firm on 200¢, while heavy cows made to 177.2¢ and averaged 170¢/kg.

Supply was steady at Casino and another good quality yarding was offered. Medium weight vealer steers to the trade were firm on 240¢, while the pens to restock and background ranged from 230¢ to 255¢/kg. The better quality vealer heifers were 2¢ cheaper on 238¢, and the few yearling steers made 213¢/kg. Medium weight cows sold to better competition, with prices 4¢ higher on 168¢/kg.

Numbers increased at Warrnambool and quality was varied. Heavy vealer steers to the trade were slightly cheaper on 219¢, while the heavier pens mainly sold from 195¢ to 211¢/kg. yearling heifers to feed mainly sold at 185¢, while the pens to the trade made 182¢/kg. Heavy, higher yielding cows remained firm, selling around 158¢/kg.

After Wednesday's markets the Eastern Young Cattle Indicator (EYCI) was 3.5¢ down on last week, settling on 400.75¢/kg cwt. The trade steer indicator fell 4¢ - to 207¢ and feeder steers were firm on 218¢/kg lwt. Heavy steer prices were 3¢ cheaper on 194¢ and medium cows finished 2¢ higher on 149¢/kg lwt.

Lamb throughput was lower at CTLX and quality was mixed. Young lightweight lambs to restockers lifted $3 to top at $105/head. New season trade lambs gained $4 ranging from $115 to $140/head or averaging 531¢ to 538¢/kg cwt. Medium weight Merino ewes ranged from $66 to $96/head.

Numbers increased significantly Hamilton with 38,000 head yarded.  Light weight 2 score lambs to restockers made from $64 to $96/head. Light trade weight lambs ranged between $90 to $115/head. Heavy trade weight lambs reduced by $4, selling from $103 to $128/head.

At the conclusion of Wednesday's markets the eastern states restocker lamb indicator decreased 30¢ on last week, settling at 538¢/kg cwt. Merino lambs were 16¢ higher on 433¢, and light lambs were up 26¢ to 503¢/kg cwt. Trade lambs were 8¢ cheaper on 481¢, and heavy lambs were back 1¢ - to 483¢/kg cwt. Mutton prices increased 28¢ - to 346¢/kg cwt.

Cattle market shines during spring

25 November 2011

National cattle throughput during spring at the physical markets reported by MLA's NLRS increased 2% year-on-year, and held firm compared with the five-year average. Turn off was mixed between the states, as the biggest changes were observed in male and female supplies.

Female yardings were 4% lower compared with last year, with every state apart from Queensland penning fewer females. National cow turn off was back 5% year-on-year, with producers retaining breeding females given the improved seasonal conditions and the increased costs of buying replacement cows. This was also evident with yearling heifers, as throughput fell 4% with the largest reductions seen in Victoria and SA.

In contrast, male consignments improved considerably throughout spring as 18% more steers and bulls were turned off. Prime cattle supplies have increased after two good years of sustained grazing conditions, with yearling steer numbers lifting 14%, and grown steer yardings 21% higher year-on-year. Aiding this was the excellent spring prices for prime cattle, which encouraged producers to sell cattle into ideal market conditions.

Restocker activity has been a major factor at many markets all spring, as producers competed strongly with feeder orders on young cattle. Restocker purchases of yearling steers increased 11%, while 7% more yearling heifers returned to the paddock. Despite the higher restocker numbers, feedlot orders have not been affected as they actually increased by 3% - vindicating that young cattle supplies have grown. Processors secured 27% more yearling steers, with the excellent season translating into heavier cattle suitable to slaughter.

Despite the greater availability of young cattle, prices over the past three months have been robust, with notable restocker demand underpinning the market. Yearling restocker steer prices averaged 10% higher on 200¢, while yearling feeder steer prices improved 11%, to average 199¢/kg lwt. Heavy yearling trade steer prices were 8% higher at 193¢/kg lwt. The Eastern Young Cattle Indicator (EYCI) reflected the improved demand, averaging 400¢/kg cwt throughout spring - 9% higher year-on-year.

Eastern states cattle prices dampen

25 November 2011

Cattle prices at markets reported by MLA's NLRS showed varying trends after Thursday's markets. Scattered and heavy rain in the Eastern states reduced throughput, while at the beginning of the week, producers were eager to move cattle before the downpours.

The Eastern Young Cattle Indicator (EYCI) dipped below 400¢ for the first time in a month, as greater numbers of the past fortnight and inconsistent quality affected prices. The EYCI currently sits on 399.75¢ after falling 3.75¢/kg cwt for the week. The trade steer indicator was 4¢ cheaper, at 207¢/kg lwt as the higher numbers reduced competition. Feeder steer demand was strong as feedlots aim to secure numbers before the holidays, as a result prices gained 3¢, to average 219¢/kg lwt .

Export processor demand was firm to stronger in the physical markets, and competition was more forthcoming with the lower A$. Despite this, heavy grown steer prices were 2¢ lower, averaging 195¢/kg - but remained XX% higher year-on-year. Medium cow prices averaged 2¢ higher at 150¢/kg, the highest level in a month.

US beef market takes a time-out

25 November 2011

The US imported beef market took some time-out this week, largely due to the Thanksgiving Holiday, but also due to the combination of the recent higher beef prices, falling A$ and renewed global economic fears.

As has been witnessed several times throughout 2011, any volatility in the currency market has seen US traders take a wait and see approach. With the A$ falling 4% in the past week, combined with the 12% rise in 90CL beef prices (in US¢/lb terms) since the start of October, importers have been much more hesitant this week, with very thin trading reported. With this week's lower A$, indicative 90CL beef prices to Australian exporters increased 15¢, to 425¢/kg FAS - 23% above the corresponding week last year.

Supply pressure continues to hold domestic US meat prices at historically high levels, with domestic 90CL boneless beef 22% above the corresponding week last year, with a similar increase for choice and select cut-out values. While the Thanksgiving holiday favours turkey and ham, retailers traditionally focus on ground beef in the ensuing weeks (Steiner Consulting Group).

Korean and US FTA gets final nod

25 November 2011

The Free Trade Agreement (FTA) between the US and Korea passed its final hurdle this week, gaining approval by the South Korean National Assembly.  While its passage had been delayed by the Korean parliamentary process, after being ratified by the US several weeks ago, the passing of the FTA is seen as a boost for the US beef industry.

Tariffs on US beef imported by Korea will drop from 40% to zero over 15 years, and duties on US pork, which range from 22.5% to 25%, will be phased out over two years starting 1 January, 2014 (Meatingplace.com). The passing of the FTA and diminishing trade restrictions for US beef places even greater pressure upon the competitive position of Australian beef, which has already been challenged throughout 2011.

The latest Korean beef import figures for October revealed that Australian beef imports totalled 12,367 tonnes swt - down 1% on the same period last year. For the same period, US imports jumped 31% year-on-year, to 10,424 tonnes swt, taking US imports for the first 10 months of 2011 to 97,940 tonnes swt - an increase of 46% year-on-year.

In terms of imported beef market share for the first 10 months of 2011, Australia captured 49% (126,911 tonnes swt), down from 53% for the same period in 2010, while US imports have increased to 38%, up from 32%. NZ's share of the imported beef market has contracted from 14%, to 12% in 2011.

Rain expected to tighten cattle supplies

25 November 2011

The past week has seen market conditions move in the favour of producers, with the lower A$ and widespread rainfall late in the week likely to help underpin livestock prices through to the end of the year. Cattle prices were largely mixed this week, with the EYCI slipping below 400¢, albeit only just; while lamb prices were only slightly lower in the wake of increased numbers through western Victoria.

Heavy falls across large swathes of northern Australia, southern Queensland and northern NSW should again see the supply of cattle tighten into December, especially after several weeks of higher numbers through MLA's NLRS reported saleyards. While the rain across key cattle regions arrived too late to have a large impact on offerings, with yardings back 9% this week, next week should provide a much better gauge of likely supplies heading into December, especially with further heavy falls forecast for Queensland.

However, for cattle processors and beef exporters, the recent heavy rain could again herald a very tight finish to the year. The lower A$ should, however, be some welcome news, particularly if it can stay below, or close to parity in coming weeks.

While lamb supplies this week felt the impact of Victorian saleyard numbers surging 34% on last week, prices withstood the influx quite well, with Victorian trade lambs easing 18¢ week-on-week, to average 459¢, while heavy lambs slipped 2¢, to 468¢/kg cwt. In contrast, NSW trade lamb prices increased 8¢ to average 522¢kg cwt, in response to a 19% decline in yardings.

Hide prices easing

25 November 2011

The local hide market remains flat under weak international demand.

Retail leather orders and general demand are expected to remain subdued into the New Year, while production has been stable.

The lower A$ has helped keep the green hide market stable.

Tough competition for Japanese buyers

25 November 2011

With end of the year closures quickly approaching in Queensland, international markets, including Japan have been reportedly active in securing Australian beef this week.

Indicative prices remained firm with the lower A$, disappointing Japanese buyers who expected more favourable prices for the upcoming higher consumption season. Reportedly, there are some items that have already been completely forward sold for this year, due to popular demand from multiple markets.

In the Japanese retail sector, total sales during October were up 2.5% year-on-year (all store based), with livestock products sales being very similar to last year (down 0.1%), despite subdued demand for Japanese Wagyu beef, according to the Japan Chain Stores Association.

US cold storage meat inventories decline

24 November 2011

As US wholesale prices increased for beef, pork, chicken and turkey, US cold storage stocks declined 2% year-on-year in October 2011 to 910,813 tonnes. Stocks were also 6.2% lower than the five-year average (United States Department of Agriculture's Cold Storage Report).

Frozen beef stocks only declined by 196 tonnes year-on-year in October to 187,885 tonnes; however, this was 9.4% lower than the five-year average. A number of end users have been forced to draw down some of their frozen trim stocks which may continue given the high prices predicted for the remainder of 2011.

Lower chicken stocks reflected the impact of a reduction in supply. Chicken stocks decreased 5% year-on-year in October, to 315,471 tonnes. Total pork inventories were 2% higher than a year ago at 222,576 tonnes, but 2% lower than the five-year average. Overall cut backs in production have also led to the tighter inventories.

US cattle on feed numbers still higher

24 November 2011

As at 1 November 2011, the total number of US cattle on feed (feedlots with a capacity of 1,000 head or greater) was 11.92 million head - 3.7% above last year, which stands as the highest monthly inventory for 2011 and the second highest November inventory since the series began in 1996 (United States Department of Agriculture (USDA) monthly Cattle on Feed report). 

However, it should be noted that there has been a significant shift towards putting more light cattle on feed compared with a year ago and as a result, cattle are taking longer to finish and reach market weights. 

The number of cattle placed on feed during October was 2.49 million head. Although placements continued to be high due to the dry conditions in the south, they were 0.6% lower compared with October 2010 numbers.

The number of fed cattle marketed jumped 3% over the same period to reach 1.79 million head. This increase comes as hay prices continue to rise and pasture availability becomes limited, placing increased feed pressure on producers and a greater dependency on grain.

US red meat production up in October

24 November 2011

According to the United States Department of Agriculture's monthly Livestock Slaughter report, commercial red meat production (beef, pork and sheepmeat) during October in the US increased slightly on the same period last year, totalling 2.13 million tonnes cwt

Beef production during October was 1% lower year-on-year, at 1.1 million tonnes cwt. The main factor for the decline was a drop in the average live weight of cattle slaughter, falling by 3.6kg, to 584.7kg/head. Similarly, veal production was 8% below October 2010, at 5,250 tonnes, with the average live weight falling 10.4kg year-on-year, to 216kg/head. The lower average weights were a result of the dry conditions across much of the country, with lower feedlot placement weights and high feed costs impacting finishing weights.

Pork production during October was up 2% year-on-year, at 1 million tonnes cwt. The average live weight of hogs slaughtered for the month was down 0.45kg from the previous year, at 125kg/head.

A minor contributor to the US red meat sector, lamb and mutton production was down 11% compared with last October, at 5,850 tonnes cwt.

Australian consumer confidence follows global mood

23 November 2011

Australian consumer confidence, as measured by Roy Morgan's index dropped to 112.1 in the week ending 13 November, from 166.4 in the previous week - the lowest rating in five weeks and registering 6.1 points below the same time in 2010.

Driving the fall was a large rise in the proportion of Australians expecting ‘bad times financially' during the next 12 months (up seven percentage points to 35%), and a steep fall in the number of Australians indicating now is a ‘good time to buy' major household items (down five percentage points to 55%).

According to Roy Morgan, the continuing uncertainty in Greece and Italy over in recent weeks has impacted global financial conditions, with the high volatility in Australian sharemarkets creating uncertainty about short-term financial situations among Australians. Roy Morgan also expected the Australian consumer confidence rating would not return to 2010 levels (which averaged 124.3) until the European debt situation is resolved.

Fresh meat purchases stable in September quarter

23 November 2011

Australia's weekly servings of fresh meat during the September quarter 2011 were stable compared with the same period in 2010, averaging 135.5 million serves. According to Roy Morgan's Meat Purchasing Report , weekly purchases of red meat decreased slightly by 0.8% to 75.3 million serves during this period, offset by a 2.2% rise in pork and ham purchases (to 20.35 million serves).

In terms of category share, weekly beef purchases during the September quarter 2011 increased 0.6 percentage points year-on-year to account for 39.7% of total fresh meat sold, assisted by competitive prices compared to other meats. Weekly lamb servings decreased by 0.5 percentage points on a year ago, to 15.8% of total fresh meat purchase. The seasonal arrival of spring lamb supply towards the end of September may have assisted retail purchases, as lamb share improved by 1.5 percentage points from the June quarter.

Chicken's share of weekly fresh meat purchase eased during the September quarter to account for 28.7%. Pork and ham shares increased slightly during this period, accounting for 13.1% and 1.9% of total fresh meat sold.

According to Roy Morgan, butchers became the largest beef and lamb retailer in the September quarter, with a 30.7% and 31.5% market share, respectively. Woolworths accounted for 30.2% beef and 29% of lamb purchases, while 16.9% of beef and 20.8% of lamb was sold through Coles group during July to September. Aldi's share in national beef purchases increased to 4.3%, while IGA/Foodland emerged with a 7.7% share in lamb sales during this period.

Beef and veal export values higher in September

23 November 2011

The total value of beef and veal exports rose 11% year-on-year in September, to A$381 million (Australian Bureau of Statistics). The higher returns were in line with the larger export volumes shipped during the month, which increased 8% over the same period (Department of Agriculture, Fisheries and Forestry).

For the nine months to September, total beef and veal export values totalled A$3.36 billion - 6% higher than a year ago. The rise in values was despite the A$ averaging 16% above the US$ and 4% higher than the Yen through the nine months to September. The higher value is also reflective of rising global beef prices.

Despite exports for the nine months to September increasing 1% year-on-year, total exports share to the big three of Japan, the US and Korea for the same period has fallen from 75% in 2010 to 69% in 2011. Encouragingly, total beef and veal export values during this period have not fallen, with other markets not only demanding more Australian beef and veal, but also maintained strong prices.

Japanese yakiniku industry eyes on US imports

23 November 2011

Beef tongue is one of the most popular yakiniku (Japanese/Korean style barbecue) items among Japanese consumers, and a very important and valuable cut for Australian beef exporters who supply Japan. With the prospect of the US beef import protocols being relaxed sometime next year, the yakiniku industry anticipates increased supplies of competitively priced tongues from the US.

Yakiniku sales had suffered from the US beef import ban as a result of their BSE discovery in December 2003. The grilling businesses' performance has not fully recovered since, even after the resumption of US beef imports in mid 2006. Besides BSE, the sector has also faced a series of food safety incidents, sluggish economy and beef consumption, and Japanese consumers ever changing preferences.

Wholesale tongue prices in Japan fluctuated greatly with the US ban, but have recently returned close to the pre US BSE levels. Japanese offal buying from Australia has reportedly been subdued largely due to slow yakiniku sales in the market, but also because of buyer expectations that there will be increased supplies from the US next year.

Farmers say LNP still has CSG bias

QUEENSLAND farmers are still not satisfied that the Liberal National Party has redressed a perceived bias towards miners and CGS companies according to a report in The Weekly Times.

LNP leader Campbell Newman last week released a 56-page mining paper, in which the most significant announcement was to make public any compensation deals between CSG companies and farmers.

"In relation to compensation, one of the biggest problems is the lack of knowledge about what people are being paid," Newman told a Queensland Resources Council breakfast in Brisbane.

AgForce spokesman Drew Wagner said the rural lobby group would prefer compensation deals were published for each region rather than for the individual farmer and doesn't believe the strategy redresses the imbalance favouring miners when it comes to access to land.

Anderson new MLA chairman

ROB Anderson has been elected as the new chairman of Meat and Livestock Australia at its annual general meeting in Longreach, Queensland, late last week according to a report in The Weekly Times.

Anderson, who was elected as an MLA director last year replaces outgoing chairman, Don Heatley, who is retiring to spend more time with his family on his farm in north Queensland.

Anderson runs a 2832ha beef operation near Mullaley, in North West NSW.

He is actively involved in his local community and has had extensive involvement in industry related boards and committees.

He is a past councillor of Cattle Council of Australia and National Farmers' Federation and was a director and senior vice president of NSW Farmers' Association. He is a graduate of the Australian Rural Leadership Program and is a Fellow of the Australian Institute of Company Directors.

Motion to scrap MLA defeated

A MOTION to wind up Meat and Livestock Australia has been overwhelmingly voted down 89 per cent at the company's annual general meeting at Longreach in Queensland says The Weekly Times.

The motion, put forward by break-away group, the Australian Beef Industry, called for MLA's conclusion by December next year. The same motion was put forward and defeated by 87 per cent vote at MLA's AGM in Tasmania last year.

This year's AGM marks a changing of the guard for the producer-owned body; outgoing chairman Don Heatley made his final address while incoming managing director Scott Hansen made his first.

Hansen opened his address with a bold new outline for MLA's renewed focus and direction for supporting producers into the future. "MLA's role is to create opportunities across the cattle, sheep and goat supply chains by optimising the return on collective investment in marketing and R&D.''

Cattle Council names McConnel rising star

QUEENSLAND beef producer Ian McConnel has been named Cattle Council of Australia's Rising Beef Industry Champion of the year according to a report in The Weekly Times.

The awards, supported by NAB Agribusiness, were held in Longreach, Queensland. McConnel, 29, will now represent young Australian beef producers at the International Livestock Congress and the Western Stock Show in the US next year.

Runner up was Tasmania's Lachie Cole from the Woodbourne Murray Grey and Angus stud at Cressy.

The paper says that the other state finalists in the competition were Jake Phillips (South Australia), Trent Anderson (Victoria) Marc Greening (NSW) and Clinton Gartrell (Western Australia).

Secrecy on foot-and-mouth report

AN EXPLOSIVE report on foot and mouth disease is being kept secret from producers. The Weekly Times says while key stakeholders in the beef and sheep industries have been briefed on the report, federal Agriculture Minister Joe Ludwig is refusing to release it to the public.

The report by former National Water Commission chairman Ken Matthews, is believed to expose major holes in Australia's capacity to cope with an outbreak of the disease. Even a three-month outbreak would leave a bill of $7.1 billion.

An email was sent out last week advising those who had the report not to speak about it. The Weekly Times believes the report is damning over the lack of traceability for sheep and goats, and critical of the current visual tag and paper-based system.

A spokeswoman for Senator Ludwig said he had provided the review to state ministers in late October, and wrote to them "seeking co-operation in strengthening further national biosecurity arrangements". She said the report would be released shortly, but did not say when.

Ogilvie new CCA president

SOUTH Australian beef producer, Andrew Ogilvie, from Kingston in the State's South East, is Cattle Council Australia's new president according to a report in The Weekly Times.

The paper says that Ogilvie was elected at the CCA annual general meeting in Longreach, Queensland this morning and takes over from outgoing president, Greg Brown, after three years.

Queensland's Peter Hall, from Cloncurry, was elected vice president and Tasmanian beef producer, Paul Saward, Redpa, was elected as chairman of the Finance and Audit Committee.

Ogilvie said increased input costs due to the new carbon price, the high Australian dollar and ongoing scrutiny from animal welfare groups would remain the big challenges the beef industry, and should be met head on.

Grainfed numbers fall

THE number of cattle on feed has fallen 10 per cent in the past quarter says The Weekly Times. Results from the September survey by ALFA show a 7 per cent fall, year-on-year, in the number of cattle on feed. But export demand for grain-fed beef has weathered a difficult year, giving lot feeders hope.

ALFA president Jim Cudmore put the survey result down to the surging Australian dollar, continued strong feeder cattle and grain prices and global economic uncertainty.

"The Australian dollar for the quarter was up 16 per cent against the US year on year, feeder cattle (prices) up 6 per cent while feed grain prices were at similar levels," Mr Cudmore said.

According to data collected by MLA's National Livestock Reporting Services, feeder steers, 330-440kg, returned an average 215c/kg last week, compared to 194c/kg in the same week last year.

Angus heifers take flight

PASSENGERS on a flight last week were right to think they were in cattle class.

But The Weekly Times says it wasn't another story in the Qantas saga. It was a plane load of 400 Angus heifers making their way across the world.

The shipment of unjoined heifers, nine to 11 months and weighing 200-250kg, left last week on a Boeing 747 bound for Kazakhstan. The cattle were part of a larger consignment to help build Kazakhstan's first Angus beef herd.

Elders International general manager meat and livestock trading Hamish Browning said the heifers had travelled and settled well. "Once we saw this consignment assembled together in quarantine, we were very pleased with the quality, condition, type and evenness of them," Browning said.

The heifers were sourced from properties in western Victoria and south-east South Australia. Browning said he expected more Australian cattle to head to Kazakhstan in the next few months.

Strong mood for change at industry forum

A strong desire for change was expressed at last week's Meat and Livestock Australia annual general meeting in Longreach according to a report with online news service beefcentral.com.

Forums before and after the AGM gave industry stakeholders the opportunity to discuss existing industry structures and views on preferred alternatives. While there seemed little disagreement new structures are needed, there was far less consensus on what form those changes should take.

Debate focused on two issues specifically - whether representatives of the cattle industry's peak producer body should be appointed via State Farmer Organisations or directly-elected, and how the peak producer body should be funded.

A strong view was expressed that the cattle industry needs a well-resourced body to manage its national affairs and to speak with a more powerful voice in Canberra. Significant debate surrounded whether a portion of the $5/head cattle transaction levy should be directed to Cattle Council of Australia.

Russian, Japanese trade decisions to impact Australian beef

Two important international trade decisions announced late on Friday will have significant implications for Australian beef exports says online news service beefcentral.com.

After 18 years of negotiations, Russia is to join the World Trade Organisation, binding the world's 11th largest economy to certain trade rules that it has up to now sometimes ignored.

In Japan, after considerable political debate, Prime Minister Yoshihiko Noda finally confirmed that Japan will join negotiations on the US-backed Trans-Pacific Partnership free trade bloc.

MLA manager, market access Andrew McCallum, said Russia had a tariff rate quota regime on beef, and the WTO accession would mean those commitments would continue under current arrangements.

Piggeries first livestock target for Govt carbon abatement

The Federal Government has released the first methodology to be approved under its Carbon Farming Initiative, letting pig farmers earn carbon credits for reducing methane emissions from manure says online news service beefcentral.com.

Agriculture minister Joe Ludwig said 680 commercial piggeries in Australia stood to benefit from the CFI. Farmers could trade the offsets they generated for carbon credits, which could be sold to generate income.

Under the ‘Methodology for the Destruction of Methane Generated from Manure in Piggeries', farmers could capture harmful methane emissions produced by manure and destroy the gas by flaring to prevent it entering the atmosphere, or use the methane to generate heat and electricity Ludwig said.

 "The roll-out of methodologies such as this will see farmers across the country participating in the world's first federally-backed carbon offset market for the land sector." He claimed this would put Australian farmers at the forefront of emission reduction practices.

NSW eyes move to volumetric loading

An in-depth examination into the feasibility of introducing a volumetric livestock loading scheme for NSW has been announced by acting Premier Andrew Stoner says online news service beefcentral.com.

Stoner said NSW was the only state in Australia without a volumetric livestock loading scheme, meaning its producers, livestock carriers, abattoirs, feedlots and saleyards had to pay higher freight costs than other states.

"Successive city-centric state Labor Governments turned a blind eye to the migration of meat and livestock businesses out of NSW and failed to investigate how road freight policies affected the industry," Stoner said.

According to the Northern Cooperative Meat Co, a 26-metre long B-double truck in Queensland could load approximately 66 to 72 head of cattle, while the same sized truck in NSW could load only 56 to 60 head. That 15pc reduction in efficiency equated to about an extra 200 truck movements on NSW roads each year.

Restockers confident

Spring rain falling across most of NSW during the past month is giving restockers the confidence to buy big on weaner cattle, helping the Eastern Young Cattle Indicator (EYCI) to hold steady above 400 cents a kilogram says The Land.

National Livestock Reporting Service (NLRS) cattle analyst, Rob Millner, Sydney, said as of Monday the EYCI was recorded at 404.75c/kg, up three and a half cents on last Monday and up by 10 per cent from 2010 figures.

"The EYCI has been in a consistent band for a while - the lowest it has dropped is 394c/kg at the beginning of October - and this is the main drive for restocker activity on young cattle, especially those under 350 kilograms live weight," Millner said.

While restockers are making the most of the benefits of the lighter cattle, lotfeeders are finding it difficult to get suitable cattle to fill their orders, while processors are creating a good demand for prime cattle.

Angus Australia launches new website

ANGUS Australia has launched its new web site, which provides an easy-use menu and ensures visitors can easily access Angus Members, Animals, Estimated Breeding Values (EBVS), Sale Catalogues and the Mating Predictor says The Land.

Signing up for the Angus newsletter (eNews) is also possible via the site. According to Angus Australia, there have been several improvements to the site, including the new Merchandise Shop using the secure payment method - PayWay.

"New members will be able to join us online and also make payment by credit card. Coming events have been moved to the Angus homepage to ensure everyone visiting us can't miss seeing this daily event listing," Angus Australia said.

"We've been developing our new web site for several months and wanted it to be ‘just right' before we went live" says Angus Australia's Marketing Manager, Sonya Buck. Angus Australia can be found at http://www.angusaustralia.com.au.

Goat meat supply dogged

WILD dogs are threatening the goat supply of processor T&R Pastoral to the point the company will be donating a portion of future goat kills to wild dog control groups says Queensland Country Life.

T&R's northern livestock buyer Andrew Jackson said mounting dog pressure was depleting generations of goat kids so the company has taken the extraordinary move of donating 50 cents from every goat it kills back to wild dog control groups in the regions from which the goats originate.

"We see breeding flocks of goats as our raw material, and we need to shore up our reserves," Jackson said. Over the past decade the status of goats in pastoral regions has shifted from a despised source of occasional pocket money to fully-fledged livestock enterprise for many stations.

Some pastoral region stock and station agencies have already acknowledged the threat that wild dogs pose to their businesses with donations towards dog control. T&R's initiative confirms that dogs are not just a problem for graziers.

Tax could cost abattoirs $10/hd

ESTIMATES of the impact of the carbon tax on abattoirs have increased, with a warning from a key industry spokesman that $10 a head could be added to processing costs at some plants says Queensland Country Life.

Speaking at the Australian Farm Institute Roundtable conference in Melbourne, Teys Australia general manager of corporate affairs Tom Maguire said size, economies of scale and access to labour were the important factors in meat processing productivity.

Maguire said a lot of public commentary had been directed at the market activities of the big two Australian retailers, when the great majority - 70 per cent - of Australian beef was exported.

"They (retailers) buy only 6pc of Australian supply," he said. The tax was structured to apply its heaviest penalty to Australia's biggest abattoirs. Maguire upped his earlier estimate that 11-14 big plants could pay $6-$7 for every animal slaughtered.

Cattle meetings over, time for action: AgForce

AFTER a long week of discussion, AgForce has congratulated the cattle industry on what it calls the "mature" approach it has taken on the future structure and funding of key industry at MLA's annual general meeting says Rural Press.

At the Longreach gathering, the Cattle Council of Australia decided to "put on hold" its current plans to restructure until the views of the broader meat industry are taken into account.

AgForce Cattle president Grant Maudsley said the decision recognises CCA needs to change to make it more responsive to all cattle producers and also provides the time to address the critical question of how CCA will be funded into the future.

 "AgForce has never suggested we abandon CCA's current structure however we admit it needs a good shakeup to create a modern, well-resourced and effective peak council that can respond to the needs of the Australian cattle industry, government and an increasingly sophisticated beef market," he said.

'Sharp growth' predicted for beef

A report in the Queensland Country Life says beef producers at the "cutting edge" can expect sharp opportunities for growth over the next five years at least, according to JBS Australia boss Iain Mars.

Mars, the chief executive of one of the country's biggest processors and exporters, joined a host of speakers at the company's Beef City near Toowoomba for a seminar organised by Queensland Country Life and supported by Rabobank and JBS.

Both Mars and Meat and Livestock Australia (MLA) managing director Scott Hansen said Australia was on track to be the world's largest exporter of beef, possibly in months, given the declining US slaughter numbers and Brazil's growing domestic demand that was eating into its once-gigantic export stocks.

Mr Mars said JBS had taken a deliberate strategy to diversify Australia's beef export destinations away from the "big three" - Japan, the US and Korea - with standout performers including the Middle East with 70pc growth, Russia up 47pc and South America with a 32pc increase.

Soil health key for CQ's beef producer

SOIL health is the heart and soul of every farming operation, and for Central Queensland beef producer Ray Vella it's critical to increasing production and ultimately kilograms over the hook says Queensland Country Life.

Vella and his wife Leah run Bald Hills, north of Marlborough, a family property comprising 7284ha of coastal country bordered by the mouth of the Styx River and Herbert Creek, and typified by high rainfall, humidity and a mix of soil types that run right to the salt pans.

Vella will now have the opportunity to study world's best practice in pasture management and other key elements of the beef industry after being awarded the prestigious Nuffield Scholarship, sponsored by Meat and Livestock Australia.

Through his Nuffield Scholarship, he hopes to broaden his knowledge of international best-practice pasture management for sustainable grazing systems and increase his understanding of the substantial productive gains that come from correct genetic selection in cattle herds.

MLA UPDATE

Friday daily livestock summary

18 November 2011

Numbers increased at Roma as a higher proportion of heavy grown cattle were yarded. Heavy yearling steers to feed mainly sold at 193¢, while those to the trade made 203¢/kg. Competition for heavy grown steers eased, with the C4 pens losing 4¢ - to 192¢, while bullocks mainly made from 182¢ to 197¢/kg. Heavy cow prices topped at 176¢, averaging firm overall on 168¢/kg.

Throughput was up at Armidale with yearlings and cows in greater numbers. Light yearling steers to restock were up to 14¢ cheaper on 243¢, while the medium weights mainly sold at 229¢/kg. Yearling heifers to the trade sold from 197¢ to 216¢ and the pens to restock settled on 214¢/kg. Some excellent quality, high yielding cows topped at 177¢ and averaged 172¢/kg.

Supply improved at Dubbo due to an increase in store drafts. Light yearlings to restock and feed were firm to 10¢ cheaper as most pens sold from 220¢ to 239¢/kg. The heavier pens to feed mainly made 207¢, while the few yearling heifers to the trade were on 189¢/kg. Heavy C4 bullock prices were stable on 195¢ and heavy D4 cows eased 8¢ - to 154¢/kg.

After Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 1¢ lower than last week on 403.5¢/kg cwt. The trade steer indicator was 3¢ higher on 211¢ and feeder steers fell 1¢ - to 216¢/kg lwt. Heavy steer prices were 4¢ higher on 197¢ and the medium cow indicator was stable on 148¢/kg lwt.

Lamb and sheep numbers fell at Wagga, with trade lambs dominating the market. Light lambs to restockers ranged from $66 to $95 to be up to $4/head dearer. New season trade lambs were $6 dearer, selling from $118 to $147/head or averaging around 523¢/kg cwt. Heavy first cross ewes to the trade reached $116/head and averaged 325¢/kg cwt.

At the close of Thursday's markets the eastern states restocker lamb indicator fell 4¢ on last week to 563¢/kg cwt. Merino lambs were 14¢ lower on 418¢ while light lamb prices held firm on 495¢/kg cwt. Trade lambs were 9¢ cheaper on 489¢, while heavy lambs were eased 3¢ - to 485¢/kg cwt. Mutton prices decreased 6¢, averaging 325¢/kg cwt.

Canadian beef supply likely to drop further

18 November 2011

After a number of years of very high beef production in line with national herd liquidation, Canadian beef production started to decline in 2009, which has continued to the present. This trend is expected to continue in 2012, with incentives in place for graziers to rebuild their herds. Good pasture conditions, in particular, will prove attractive to those producers looking to run more stock, especially compared with US conditions (Steiner Consulting Group).

When the drop in Canadian beef production is combined with the forecast reduction in US supply (Canada's largest source of imported beef), there appears to be an opportunity for growth of Australian product into Canada in the short term. At the same time, the current premium for imported grinding beef over domestic product (around C21¢/kg) may be an obstacle for potential growth.

Korean trading remains slow

18 November 2011

Average prices in the Korean wholesale market for imported beef cuts were either steady or slightly lower this week. Trading activity in the major beef market (Majang-dong) remains somewhat subdued - with various reports indicating that overall consumer demand is sluggish. 

Bloomberg reported that sales at Korean department stores in October increased at the slowest pace in 30 months and sales at the three largest discount retailers increased 3.1% year-on-year compared with 6.5% in the previous month. A South Korean consumer sentiment index for October, however, showed that consumers were neutral on whether domestic economic and living conditions will worsen or improve over the next few months (Bank of Korea). Korea's core inflation, excluding agriculture and petroleum products, rose 3.7% - the first time this year that the index has fallen below the government's annual inflation target of 4% (Yonhap).

From 1 - 16 November this year, Australian beef exports to Korea totalled 6,727 tonnes swt, with chilled beef making up only 18% (DAFF). It is expected that export volumes will total above 12,000 tonnes swt for the month - similar to volumes for the same period last year.  

China meat production up in 2012, except for beef

18 November 2011

The United State Department of Agriculture has forecast China's 2012 total meat production to increase 3% year-on-year, to 81.4 million tonnes. Pork production is expected to continue to account for the predominant share, at 63% of total meat output, followed by poultry (23%), beef (7%) and sheepmeat (6%). China's beef production has been forecast to continue its downward trend into 2012, falling 1% on 2011, to 5.5 million tonnes, as the cattle herd is anticipated to decline 1% year-on-year, to 46.2 million head.

Contributing to the decreased beef production has been the comparatively poor returns to beef cattle farming relative to swine and poultry farming. The longer production time for beef cattle, combined with continuing high feed prices have created significant disincentives for small producers, who account for the vast majority of China's cattle operations. High labour costs, rising utility bills, transportation, and water expenses have also limited beef production growth potential.

Following the slow domestic beef production, China was expected to increase beef imports by 7% to 45,000 tonnes cwt in 2012. Beef exports were also forecast to increase 4% to 57,000 cwt, fuelled by strong demand in China's traditional markets in Asia.

Argentinean beef exports decline further in September

18 November 2011

Argentinean beef exports during September fell 39% compared with the same period last year, to 10,387 tonnes swt. Beef exports from Argentina during January to September 2011 fell 18% year-on-year, to 101,987 tonnes, largely a result of declining beef production, which was 7% lower over the same period, at 1.9 million tonnes (International Meat Secretariat's Newsletter - IMS, 15 November).

Contributing to the fall in Argentinean beef exports during January to September was a 45% year-on-year fall in shipments to Russia, to 14,192 tonnes. The European Union remained the largest market for Argentinean beef during the nine months to September 2011, taking about 34% of total Argentinean shipments, despite a 7% year-on-year decline in volume. Israel was the second largest market with a 21% share.

The long-term decline in beef production is the result of the government's intervention in the industry, severe drought and continued uncertainty over future government policies. According to IMS, Argentinean domestic beef consumption has continued to decline following the tight supplies. Per capita beef consumption during the nine months to September averaged 54.4kg, compared with 57.2kg in 2010 and 67.7kg in 2009.

Philippines beef imports increase in September

18 November 2011

Philippines beef imports during September increased 10% compared with the same period in 2010, to 9,964 tonnes swt. Imports from most markets improved year-on-year, except for the US (down 21%) and India (down 8%) (Philippines' Department of Animal Industry).

In the nine months to September 2011, beef imports fell 10% year-on-year to 73,424 tonnes swt, largely due to falls in imports from India (down 17%), Australia (down 1%), US (down 8%) and Brazil (down 43%).

According to industry sources, meat safety issues were on the rise in the Philippines in September, following the Bureau of Animal Industry's ban on US ground beef originating from several US states (due to E.coli contamination) and reports on the mishandling of local pork and chicken in wet markets. As a result of the food safety concerns, demand for Australian beef is expected to remain strong for the rest of 2011. 

Wholesale Australian chilled beef prices in the Philippines during September were reportedly stable compared with August. Australian chilled tenderloin prices averaged 1,100 peso/kg (A$24.80/kg), while US chilled tenderloin prices averaged 1,890 peso/kg (A$42.63/kg). Prices for frozen Australian striploin, ribeye and rump remained firm, averaging 700 Peso/kg (A$15.79/kg), 900 Peso/kg (A$20.30/kg) and 450 Peso/kg (A$10.15/kg), respectively.

Cattle supply jumps before summer

18 November 2011

National cattle yardings at physical markets reported by MLA's NLRS lifted 29% as throughput increased significantly in every state.

Warmer temperatures in the eastern states and the attractive physical market prices have enticed cattle producers to increase consignments. This was particularly evident in central and southern Queensland, as substantially more cattle were yarded this week, with throughput up 38%. Producers are also motivated to sell cattle prior to summer, given the unpredictable weather patterns experienced in recent years.

NSW consignments lifted 25% due to most markets penning more cattle as the increasing temperatures and strong prices encouraged turnoff. Supplies in northern markets were mostly larger, while some storms affected southern supplies. The majority of young and grown cattle are in excellent condition after the October rains allowed winter grazing crops to flourish late into the spring.

Victorian throughput was 24% higher, with several markets penning more young cattle. The season continues to hold on for much of the state, and cattle quality is expected to remain high over the summer months. SA numbers increased 20%, with an influx of cattle recorded at Mt. Gambier. WA yardings were also larger, with producers eager to sell cattle at the high prices prior to the summer heat. Both the Muchea and Great Southern markets increased throughput, with pastoral cattle maintaining a strong presence.

The larger yardings meant that this week's supplies were the highest since early May, and 39% above the corresponding week in 2010. The lift in supplies has been exaggerated by the tighter yardings during late winter, with graziers choosing to hold onto cattle. Despite the expanding numbers, prices have not weakened as the benchmark Eastern Young Cattle Indicator (EYCI) held firm at 403.5¢/kg cwt, up 9% year-on-year.

Direct to works cattle rates firm

18 November 2011

Eastern states over the hooks (OTH) cattle rates recorded a generally stable trend, with most categories firm to slightly dearer this week. This occurred despite the increasing availability of prime cattle drafts - as strong competition between processors assisted livestock prices to remain strong.

The warmer weather has prompted the increased movement of cattle in most areas, with producers selling fat cattle prior to the summer months. The cattle going direct to works are reportedly of excellent quality, with average carcase weights higher.

Medium weight (220 - 260kg cwt) yearling steer demand was firm, as eastern states OTH rates averaged 353¢/kg cwt. Prices for heavy grass fed steers (300 - 420kg cwt) registered the biggest changes, with southern Queensland topping at 355¢, as rates in the eastern states averaged 333¢/kg cwt. Resilient demand for manufacturing beef has seen the majority of cow rates hold above 300¢/kg cwt. Direct to works prices for heavy cows (320kg cwt+) averaged 301¢/kg cwt.

Weaker demand drives hides lower

18 November 2011

Hide prices were again lower as weakening global demand continues to affect the market. Australian production levels are holding firm, and this is forcing manufacturers to sell product at lower prices in a bid to boost demand.

All hide categories were lower and prices are expected to trend downward in the coming months.

Japanese economic uncertainty

18 November 2011

This week's welcoming news on Japans' gross domestic product (GDP) improving for the first time in three quarters was clouded several days later by the Bank of Japan's warning on slower economic growth. The bank revised down its assessment based on a slowdown in overseas economies, along with the influence of the strong yen which has weakened the country's export sector.

Subdued Japanese interest in Australian beef underpinned by the fragile economy was in contrast with firm demand from other international markets this week. Frozen beef, trimmings in particular, continued to attract strong interest, with indications this week that prices in US$ terms remained similar to last week.

The Japanese government announced officially that it has begun a process to review the current import protocols of US beef into Japan, following the announcement of Japan's participation into the Trans Pacific Partnership (TPP).

USDA reports high cattle prices for October

18 November 2011

The United States Department of Agriculture's (USDA) October Agricultural Price Report shows that beef cattle prices were up 4US¢/lb from September 2011, to 116US¢/lb. This is the highest US beef cattle prices have been since April this year.

A relatively weak US$ and increased global demand for US beef has contributed to a 23US¢/lb rise in beef cattle prices compared with October 2010. 

Despite some recent rain, the drought in southern US is still having an effect on cattle numbers and prices. While prices for calves, steers and heifers have increased, the price of cows has decreased. The drier conditions and lack of feed led to an increase in the supply of cows sent to market through 2011, resulting in downward pressure on cow prices.

Uncertainty dominates US market

18 November 2011

The US beef market was somewhat mixed this week, with prices for imported grinding beef remaining well above domestic product. Trade was reportedly erratic, with a lack of product from key suppliers including Australia, attracted to stronger returns in other markets. Limited product from New Zealand resulted from the slow start to the processing season, holding prices steady or higher. 90CL beef increased 2.3A¢/kg on last week, to 410.3A¢/kg FOB, 20% above the same time last year.

Some buyers are finding themselves weighing up whether to purchase domestic beef now to store until early 2012 or wait and purchase next year, when prices are expected to increase. This expected increase in prices is based on slowing US cattle slaughter and the good returns for Australian (and other suppliers) beef in competing markets (Steiner Consulting Group).

There is also the risk that the European crisis could worsen and spread to affect the US and global markets.

Prices hold as numbers flow into saleyards

18 November 2011

Whether it was the burst of warmer weather across the eastern states, or the run of stronger prices in recent weeks, numbers increased substantially at MLA's NLRS saleyards this week, with cattle yardings up 29% and lambs 12% on the previous week.

However, given the increased supplies, prices for both cattle and lambs held up reasonably well this week, with the benchmark EYCI finishing Thursday at 403.5¢/kg cwt, while national trade lambs averaged 6¢ lower, at 488¢/kg cwt. National mutton prices eased 5¢, to average 338¢/kg cwt.

For the cattle markets, while over 13,000 head was offered at Roma and Dalby combined this week, average saleyard prices for Queensland were steady, as direct-to-works prices in Queensland increased 3-5¢, with 300-420kg cwt steers averaging 355¢/kg cwt. Another decline in the A$, falling below parity late in the week, will again be welcome news for the industry, provided it manages to remain around these levels and not quickly rebound like previous occasions.

A result of both increased supplies in recent weeks and slowly improving international demand, Australian beef and veal exports for the first half of November exceeded 48,619 tonnes swt - on track to be one of the highest export months in recent years. Similarly, lamb exports have also started the first half of the month very quickly, at 8,264 tonnes swt, with strong volumes to the Middle East and the US.

Lower beef exports from NZ

17 November 2011

New Zealand (NZ) beef exports eased 1% year-on-year during October, to 15,058 tonnes swt (NZ Meat Board), on the back of a slow start to the processing season, which runs from October to September.

The distribution of beef exports was mixed compared with last October, with a 6% fall in shipments to the US, to 4,215 tonnes swt, affected by high prices for importers, a 7% decline to South East Asia, to 2,394 tonnes, and an 18% drop to the Middle East, to 1,524 tonnes, reducing the volumes to the largest markets. Growth of 19% to Japan, to 1,508 tonnes, and 52%, to 1,381 tonnes, to Greater China reinforced the importance of the north Asian markets to NZ beef, while shipments to Korea were relatively steady, just 2% lower year-on-year, at 1,006 tonnes.

Cattle rebuilding, sheep flock bounces back

17 November 2011

Preliminary Australian cattle herd and sheep flock estimates have been released by the Australian Bureau of Statistics (ABS) following the 2011 Agricultural Census which is carried out every five years. The results are available in the ABS publication Principal Agricultural Commodities.

According to the ABS preliminary results, the Australian cattle herd grew by 9% in the year to 30 June 2011, reaching 28.8 million head. The larger national herd was driven by the southern and eastern states, while WA and the NT recorded lower numbers. In addition, most of the growth was in the beef cattle herd, with the dairy herd also increasing slightly.

Queensland had the largest cattle herd, 13% larger than the previous year, at 12.8 million head. NSW lifted 7% year-on-year, to 5.8 million, Victoria 10%, to 4.0 million, SA 24%, to 1.3 million and Tasmania 9%, to 0.7 million. WA cattle numbers fell 9%, to 2.1 million head, while the NT herd was back 2%, to 2.0 million.

For the first time since 2004, the Australian sheep flock has increased compared with the previous year. According to the ABS results, the national flock grew 9% in the year to 30 June 2011, to 74.3 million head.

The increase in numbers was recorded across every state except WA, which declined 2%, to 14.5 million head. NSW had the largest flock, at 27.0 million head, 11% more than last year, followed by Victoria, 7% higher, at 15.4 million, and WA. A significant increase was recorded for the SA flock, up 25%, to 11.2 million, while Queensland (up 3%, to 3.7 million) and Tasmania (up 13%, to 2.4 million) also contributed to the larger flock.

The estimated number of breeding ewes on hand at 30 June was 42.8 million head, up 1% on last year, while all other sheep rose 22%, to 31.5 million. The estimated number of lambs marked for the 2010-11 financial year was 33.2 million head, up from 31.9 million the previous year.

The response rate for the preliminary results from the 2011 Census was 79%, from 163,000 agricultural businesses. Additional commodity estimates, and possibly revisions to these figures, from the 2011 Agricultural Census will be published in Agricultural Commodities, Australia (cat. no. 7121.0) in June 2012.

Weaner steers to $780

AUTUMN-drop weaner steers sold to $780 at Yea last Friday according to a report in The Weekly Times - a very welcome sign with the hotly anticipated summer weaner calf sales around the corner.

The best of the autumn-drop weaners sold from $760 to $780 for the top 20 Angus, February-March drop, for A and S Tait of Bonnie Doon. In the grown pens cross steers, 22-24 months, sold to $980.

But buyers found the going easier than at Pakenham the day before and Leongatha last week where grass fever took hold. Prominent Landmark buyer, Eddie Hams, managed just 30 steers at Pakenham compared to 160 steers and 40 heifers at Yea.

In the grown heifer pens, a line of unjoined Angus and Charolais heifers, 12-14 months old, from Glenmore Station, reached $835. Last year, similar heifers from the same vendor reached $915, but many onlookers still rated the sale as strong.

MLA launches iPhone app

IT'S an age-old question, but now home cooks only have to look to their iPhone for the answer on how to cook the perfect steak according to a report in The Weekly Times.

The report says that Meat and Livestock Australia's iBeef iPhone application - that's app for short - helps consumers get the most out of their beef by taking the guesswork out of cooking.

MLA marketing manager Andrew Cox said the greatest challenge for many consumers was selecting the right cut of beef for the meal type. "A good way to improve consumer perception is to help with cut selection and cut errors," he said.

The app helps consumers select the right cut of steak and, according to its thickness, how long to cook it for, when to turn it, when to remove it from heat and how long to rest it for. It also has hundreds of recipes for casseroles, roasts and stir fries.

Listed ag businesses lose ground

A online report on weeklytimesnow.com.au says that the performance of the listed agribusiness sector is on the slide according to the Commonwealth Bank's Agribusiness Index.

The index of 15 rural-dependent companies on the All Ordinaries Index posted a 11.9 per cent decline over the third quarter. Investor sentiment remains mixed after being shaken by volatility across world markets, the bank said.

The companies in the index grow food or fibres, produce raw material and fuels or provide agricultural services in Australia. Previously the index outperformed the broader S&P/ASX 200 Index on an annualised basis but the latest result sees it underperforming by -13.9 per cent to -8.6 per cent.

The bank's regional and agribusiness executive general manager Brendan White said the performance of the listed agribusiness sector was not necessarily reflecting the underlying strength of the sector.

Ag's outlook promising: RBA

According to a report in The Weekly Times, Australian agriculture is now facing a positive outlook in the medium term, the Reserve Bank of Australia says.

In a speech last week the paper says that the RBA assistant governor Philip Lowe said that higher prices and production yields would provide the sector with strong returns in the next decade.

"According to the Bureau of Statistics, farm GDP (gross domestic product) increased by almost 10 per cent in the past financial year, boosted by higher levels of rainfall," he told the paper.

"This combination of generally high prices and high output has provided a substantial boost to aggregate income of the farming sector over the past financial year." He said farm incomes over this year and next year would be almost double the average for the past two decades.

JSB out of calf sales

MAJOR Brazilian-owned buyer and processor JBS Australia has withdrawn from Southeast Australia's New Year weaner calf sales in what The Weekly Times says promises to be a major blow to the round of sales.

Also Australia's biggest lotfeeder, JBS, bought 22,000 weaners for backgrounding this year, mostly from the major January calf sales in Victoria and SA. Industry sources put the investment at $36 million.

Solid demand for boxed beef from Argentina, Chile, Brazil and Russia has resulted in JBS bolstering feeder steer numbers from 8000 to 9000 head a week. JBS national feedlot manager Michael Doyle said while the company wouldn't buy at the sales, it would have a presence.

"We want to build relationships with those people who buy the cattle and want to sell on to feeder and slaughter rates," Doyle said. Wodonga agent Trevor Parker said JBS left buyers "shell-shocked" last year. He did not see its withdrawal to affect the looming weaner sales, citing plenty of cattle-industry confidence.

Grainfed numbers fall

THE number of cattle on feed has fallen 10 per cent over the past quarter. The Weekly Times says results from the September survey by the Australian Lot Feeders' Association and Meat and Livestock Australia, also show a 7 per cent fall, year-on-year, in the number of cattle on feed.

But export demand for grainfed beef has weathered a tough year, giving lot feeders hope. ALFA president Jim Cudmore blames the surging Australian dollar, continued strong feeder cattle and grain prices and global economic uncertainty.

"The Australian dollar for the quarter was up 16 per cent against the US year on year, feeder cattle (prices) up 6 per cent while feed grain prices were at similar levels," Cudmore said.

According to data collected by MLA's National Livestock Reporting Services, feeder steers, 330-440kg, returned an average 215c/kg last week, compared to 194c/kg in the same week last year.

Cattle Council trims the fat

Cattle Council of Australia is set to unveil a new, streamlined structure. The Weekly Times says the model will have fewer board members, still drawn from state farmer groups, with voting rights reallocated in proportion to each region's cattle numbers.

But the option of direct membership of CCA by industry groups and corporations, who choose to pay membership fees to join, is likely to remain, says Victorian CCA representative and Victorian Farmers Federation councillor Leonard Vallance.

The structure will be revealed at the MLA annual general meeting at Longreach, in Queensland, on Thursday. It comes as debate rages over representation after fallout from the Indonesian live-export ban and falling farmer group memberships.

Vallance said the proposed structure would be more responsive, cost-effective and sustainable. But he hinted the CCA's NFF membership - about $200,000 a year - was in question. "NFF membership is being robustly discussed," he said.

To Russia with live export

THE future for live exports of breeding cattle looks bright, following the latest shipment of Angus heifers to Russia last weekend according to a report in The Weekly Times.

About 6000 Angus heifers were loaded on to the MV Dareen at Portland, bound for Russia's Bryansk region. The heifers, aged 12-18 months and at about 300-350kg liveweight, were sourced from farms in the Western District, Gippsland, South Australia's South East and the NSW Riverina.

The paper says that the voyage is scheduled to take about 30 days. Elders meat and livestock trading general manager Hamish Browning said Australia was well suited to supplying quality breeding cattle to world markets.

He said he believed solid numbers would be exported in the next few years, with the Baltic region offering enormous potential to exporters.

European trade on beef radar

As Australia's biggest lotfeeders actively seek European Union-eligible cattle, that market is now also firmly on the radar for southern beef producers according to a report in The Weekly Times.

And producers are being encouraged to become accredited to take advantage of future demand and premiums. The niche market will suit self-replacing herds who do not trade cattle, use no hormonal growth promotants and can keep reasonable records.

The European Union Cattle Accreditation Scheme was developed about a decade ago for suppliers to the market. NSW DPI beef cattle officer Jeff House said the grassfed EU market had traditionally been the domain of northern producers.

House said gaining EU accreditation did not limit market options but was another opportunity for southern producers. The EU market took 10,000 tonnes of beef from Australia in 2009, or 1 per cent of Australia's total exports.

PertAngus - end of an era

THE second stage of the PertGenetics female dispersal was a success. The Weekly Times says the sale achieved an average of $2504 for 308 Angus cows, cows with calves and heifers.  Bidding reached $8000 twice for cows with calves.

Held on farm at Glenaroua, the sale marks the end of 53 years in the stud industry for the Grimwade family. Principal Martin Grimwade said they were thrilled many long-term clients had supported the sale.

"It makes us, exiting the industry, feel really happy people value our genetics and will go on with them. We are proud to have produced a commercially relevant product at the right time,'' Grimwade said.

Last week 187 Black Simmental and Sim-Angus females averaged $2222 in Pert's first female dispersal sale. Pert will hold its final bull sale, including 70 Angus, Black Simmental and Sim-Angus, next autumn.

Integrity central for McDonald's

Lisa Isaacs, McDonalds' national purchasing manager for Australia and New Zealand, has told an Australian Agribusiness Association breakfast the company is focused on delivering a product with ‘integrity' says online news service beefcentral.com.

McDonald's Australia turns 40 this year, with more than 850 stores across the country and spending $600 million each year on primary product, including 26,000 tonnes of beef, 15,600t of chicken and 67,000t of potatoes.

 "Today, McDonald's is about playing a very real and active role in the changing needs, expectations and attitudes of both our customers and the wider community," Isaacs said. It also spent more time than ever listening to what customers were saying about product integrity, greater choice, and healthy options.

The company's next big step was into its premium menu range, including the highly successful Premium Angus program in 2009, which far exceeded sales expectations, and continues to figure prominently on menus.

NSW DPI seeking help to identify driver

The NSW DPI is seeking public help to identify the driver of a vehicle that illegally crossed the NSW-Queensland border without stopping for a compulsory cattle tick inspection last week says online news service beefcentral.com.

In a statement the DPI said it was seeking to identify the driver of a vehicle pictured towing a horse float which it says illegally crossed the NSW-Queensland border at Tweed Heads.

Director Agricultural Compliance with NSW DPI, Dr Andrew Sanger, said images taken by the NSW DPI camera surveillance system at Chinderah clearly shows the driver has gone to great effort to avoid recognition and detection.

"The vehicle's registration plates have been intentionally covered, the driver has hidden his face with a hat and the movement was in the early morning hours," he said. Anyone with information about the vehicle or owner should contact NSW DPI on 02 6626 2201.

Why cooking meat counts

In a first-of-its-kind study, Harvard University researchers have shown that cooked meat provides more energy than raw meat according to a report with online news service beefcentral.com.

The finding challenges the current food labelling systems and suggests humans are evolutionarily adapted to take advantage of the benefits of cooking. The research, led by Harvard PhD candidate Rachel Carmody, aims to bridge the fields of human evolution and modern human nutrition.

"Every day, humans in every global society devote time and energy to processing food - cooking it, grinding it, slicing it, pounding it - yet we don't understand what effect these efforts have on the energy we extract from food," Carmody said.

"It is astonishing, since energy gain is the primary reason we eat." Though earlier studies had examined how cooking affects specific aspects of the digestive process, surprisingly, Carmody said none had examined whether cooking affected the overall energy value of meat.

Minister reveals lack of understanding in rent swipe

Queensland's natural resources minister has angered rural leaders with comments that appear to reveal a fundamental lack of understanding about how leasehold land rentals work says online news service beefcentral.com.

Rural lobby group AgForce is concerned about the impact rising rents could have on farm profitability when current arrangements end from 2017. In 2007 the Queensland government raised the percentage for calculating rural rents from 0.8pc of unimproved value to 1.5pc. 

AgForce CEO Robert Walker said under the current system rents could rise as much as 1100pc in 20 years, in line with rises in property values. "However, just because land is more valuable, it doesn't mean a producer profit will increase," Walker said.

Natural Resources minister Rachel Nolan denies "land rents represent an unreasonable imposition on pastoral leaseholders". She suggested the 1.5pc rate paid by rural leaseholders was low compared to other renters but overlooked leaseholders had to pay full market value to secure the right to lease the property in the first place.

Bid to freeze abattoir assets

A CASE that tests the limits of the powers of the federal Fair Work Ombudsman to intervene in a workplace in an effort to protect employee entitlements returned to the Federal Court last week says The Land.

The Fair Work Ombudsman wants a NSW abattoir to stump up $1 million in surety to guarantee employee entitlements, in what is shaping up as a test of federal workplace and insolvency laws.

Lawyers for the Fair Work Ombudsman told the court in Sydney that a man associated with the group of companies that owned the abattoir had tried to avoid paying up before and that justified the court order to freeze $1 million of his assets.

The Grafton abattoir is closes this week but the Ombudsman fears the owner would not pay entitlements to about 200 workers. It is alleged staff were told there were no redundancies; they might be able to apply for jobs at a Casino abattoir or resign.

Young beef leaders to champion their industry in Longreach

SIX young beef industry "Rising Champions" from across Australia will present an opportunity or challenge facing the beef industry to Cattle Council of Australia at its November 15 meeting at Longreach says The Land.

The paper says that the representatives will also be competing for the national title of 2012 NAB Agribusiness Rising Beef Industry Champion.

The Rising Champion State finalist demonstrating greatest leadership potential, as judged by Cattle Council Executive and NAB Agribusiness, will be announced at the Beef Industry Champions Gala Dinner that night in the Stockman's Hall of Fame.

The winner will represent young Australian beef producers at the International Livestock Congress and the Western Stock Show and will tour cattle facilities in Denver, Colorado, US, in January 2012.

RMAC to host red meat industry policy forum

RED Meat Advisory Council Ltd (RMAC) will host the inaugural Red Meat Industry Policy Forum in Longreach on Thursday according to a report in the Queensland Country Life.

RMAC Independent Chairman, Ross Keane, said "the forum will be a valuable opportunity for producers and the broader industry to hear from Peak Industry Councils, and discuss policy matters and other issues impacting their businesses".

The Red Meat Industry Policy Forum will feature presentations by peak industry council representatives from the production, processing and live export sectors, followed by an interactive Q&A panel session.

"The forum aims to help build a better understanding of the role and activities of these councils, and for producers to raise and discuss industry issues and policies direct with Council representatives", Keane said.

Clearer cattle voice needed in Canberra: AgForce

QUEENSLAND farm lobby group AgForce is urging all sectors of the cattle industry to commit to robust discussion of how to create a stronger national voice for cattle producers in Canberra and across the nation says Rural Press.

AgForce Cattle president Grant Maudsley said industry meetings in Longreach this week must map out a sustainable and effective structure for the Cattle Council of Australia (CCA).

"A number of influential cattle producers have floated ideas in recent weeks on how to restructure CCA. There are some valuable concepts and AgForce Cattle representatives are ready to participate in the discussions," Maudsley said.

As by far the biggest beef-producing state, AgForce cattle members make the greatest financial contribution of all farm organisations to the CCA budget. Maudsley said whatever funding mechanism is chosen by industry, the importance of state farm organisations (SFOs) and their lobbying must be acknowledged.

MLA UPDATE

Friday daily livestock article

11 November 2011

Numbers were back at Roma Prime as herd rebuilding takes precedence. Heavy grown steers made to 198¢ and averaged 6¢ dearer on 196¢/kg. Bullocks topped at 199¢ and mainly sold at 196¢, while grown heifers averaged 171¢/kg. Heavy D4 cows sold to good demand, with prices 10¢ higher on 167¢/kg.

Throughput was lower at Dubbo with rain in the drawing area. Medium weight yearling steers to feed and restock sold from 210¢ to 235¢, as the heavy C3 pens to the trade gained 7¢ - to 208¢/kg. Yearling trade heifers were up to 8¢ dearer, as most drafts sold from 189¢ to 203¢/kg. Heavy grown steers to export slaughter were 8¢ higher on 196¢, as most cows were on 161¢/kg. 

Supply was higher at Bairnsdale and quality was fair. Heavy yearling steers to the trade were 4¢ cheaper, mostly selling from 184¢ to 201¢/kg. Yearling heifers to restock made 182¢, while the better quality pens to the trade averaged 179¢/kg. Heavy D4 beef cows remained firm, selling around 158¢/kg.

After Thursday's markets the Eastern Young Cattle Indicator was 4¢ higher for the week on 404.5¢/kg cwt. The trade steer indicator held firm on 208¢ and feeder steer prices gained 2¢ - to 216¢/kg lwt. Heavy steer prices were 2¢ higher on 193¢ and the medium cow indicator was stable on 147¢/kg lwt.

Lamb and sheep numbers held firm at Wagga, with light lambs dominating the market. Light lambs to restockers ranged from $62 to $108 to be up to $6/head dearer. New season trade lambs were $8 cheaper, ranging from $106 to $140/head or averaging 420¢ to 555¢/kg cwt. Medium weight Merino ewes ranged from $42 to $101 to be $7/head cheaper.

At the close of Thursday's markets the eastern states restocker lamb indicator was up 26¢ for the week - to 567¢/kg cwt. Merino lambs were 19¢ lower on 432¢ while light lambs lost 8¢ - 494¢/kg cwt. Trade lambs were 4¢ lower on 498¢, while heavy lambs were firm on 488¢/kg cwt. Mutton prices decreased by 32¢, averaging 331¢/kg cwt.

Beef exports to South Asia march to another record

11 November 2011

Australian beef exports to South East Asia and Greater China during October jumped 36% year-on-year, to 14,702 tonnes swt - the highest October shipments on record. Exports to the region during January to October 2011 also increased 5% year-on-year, to 113,979 tonnes swt, boosted by double digit growth to almost all markets, except for Indonesia.

Australia sent an average of 26,000 tonnes swt of beef to South East Asia and Greater China during the last two months of 2009 and 2010. This year, with Australian beef production expected to improve, and demand from the region upbeat, exports to South East Asia and Greater China may break the 133,235 tonne swt record registered in 2010.

There has been a combination of positive factors behind the rise in Australian beef exports to South East Asia and Greater China this year. One of the factors has been increased government and consumer attention to food safety issues, particularly in China - in Taiwan due to the issue of US beef containing ractopamine and the Philippines in relation to local meat and the partial ban on ground beef originating from certain US states. China's retail meat prices have trended to all year highs, resulting in increased orders of Australian beef during January to October 2011. Limited access to Uruguayan and Brazilian beef in Malaysia supported shipments of Australian beef to the market, while the foodservice and tourism growth boosted shipments to Singapore, Thailand and Vietnam.

Australian beef exports to Indonesia fell 18% during the same period, to 32,989 tonnes swt, largely influenced by the ongoing import permit restrictions.  

The composition of beef exports by cut to South East Asia and Greater China has not changed markedly this year, with manufacturing beef accounting for 37% of total shipments, followed by shin shank (14%) and hindquarter cuts (14%). Chilled beef exports to the region increased 25% during January to October and grainfed shipments jumped 29% year-on-year.

Cattle prices edge higher

11 November 2011

The cattle market edged higher this week, as offerings at MLA's NLRS reported saleyards contracted 5% on last week, with Queensland yardings hitting a four-month low. In contrast, lamb numbers surged 17% on the previous week, with higher offerings in both SA and Victoria.

The lower cattle offerings in Queensland for the week was reflected in saleyard averages, with Queensland heavy steers (355¢/kg cwt) and trade steers (396¢/kg cwt) increasing 7¢ and 6¢, respectively, on last week. While the contraction in Queensland offerings was largely put down to rain in previous weeks, several storms in the past few days also brought significant falls to southern NSW, eastern SA and much of Victoria, also contributing to the stronger market.

The largest national lamb yarding in six months, up 17% on last week at 179,309 head, proved to be a good test for demand within the market, with most price categories holding up. Interestingly, it was this week last year that started to see a ramping up of lamb numbers, culminating in 270,000 head in the second week of December. While yardings are again expected to increase towards the end of 2012, especially as western Victorian sales gather pace, overall numbers offered will be largely dependent upon rain, prices and producer sentiment.

Nationally, trade lambs eased 8¢, to averaged 494¢/kg cwt for the week, while heavy lambs edged 1¢ higher, to 487¢/kg cwt.

Given the recent volatile ride, any market enthusiasm regarding the decline this week of the A$ has been muted, especially with increased speculation of the global economy stalling heading into 2012.

Eastern states restockers active

11 November 2011

Nationally, restocker lamb purchases at MLA's NLRS reported physical markets increased 26% in October 2011 compared with the same period last year. Increased demand was particularly evident in NSW which registered a 65% rise in purchases year-on-year. 

In SA, restocker purchases almost doubled compared with 2010. Victoria also experienced strong restocker demand throughout October, with 53% more lambs purchased than October 2010. 

The availability of feed and a good seasonal forecast has encouraged producers into the market. Additionally, new season light lambs suitable for restocking have been abundant at physical markets, with solid prices encouraging more numbers onto the market.

Quality in October was above average, however, towards the end of the month lambs began to show signs of dryness. Pasture growth due to strong seasonal conditions has resulted in lambs with high levels of seed and burr in wool discounting skin values.

Restocker competition for lambs across all states assisted prices in October, with the eastern states restocker lamb indicator averaging 521¢, which was 31¢/kg cwt higher than October 2010. In early November, restocking lamb prices remained strong, averaging 549¢/kg cwt.

Cattle prices mixed

11 November 2011

The changes to national indicator cattle prices were mixed at MLA's NLRS reported saleyards this week, although most categories were dearer in response to tighter supplies.

The national vealer steer indicator dropped 2¢, to 221¢/kg lwt, with higher Queensland numbers driving the softer trend. The feeder steer indicator was 2¢ higher on 217¢ and trade yearling steers lifted 5¢, to 207¢/kg lwt. Export grades also varied, with heavy steer prices recovering from last week's decline to finish 2¢ higher, on 193¢/kg lwt. The medium cow indicator was firm at 144¢/kg lwt - yet prices remain 4% higher year-on-year.

Cattle supplies in the physical markets as reported by MLA's NLRS were back 5%, with mid-week rain across the eastern states restricting turnoff. In WA, consignments were low, with fewer cattle being turned off given the improved seasonal conditions. Quality of most grades is good to excellent, with heavy cattle seen in most saleyards this week.

Hide prices down slightly

11 November 2011

There were only minimal changes to hide prices this week, with brine cured hides mainly cheaper.

Uncertain demand for raw hides has been influencing the market, with tanners using caution when buying.

Supplies are strong, and this has placed further downward pressure on the domestic market.

EYCI improves

11 November 2011

The benchmark Eastern Young Cattle Indicator (EYCI) remained above the 400¢/kg cwt mark this week, as the young cattle market once again defied the seasonal trends. After Thursday's markets, the EYCI had gained 4¢ on last week, settling at 404.5¢/kg cwt - 10% above the corresponding period in 2010.

Rain across central NSW and a general tightening in young cattle supplies throughout the major markets in south-west Queensland drove the dearer trend. Intense competition between restockers, feeders and processors resulted, and most markets were at least 4¢ to 6¢/kg lwt dearer.

Japan's imported beef stocks higher than a year ago

11 November 2011

Imported beef stocks in Japan at the end of September fell from very high levels in August, but remained 4% higher than a year ago at 84,012 tonnes swt (data from Japan's Agriculture and Livestock Industries Corporation).

At the same time, there was an increase of imported products kept in bond and yet to be cleared by customs - up 20% on the previous month to 8,899 tonnes. The relatively high inventories may reflect the imbalance between steady import volumes this year (up 3% from January to September compared with the same time last year) and slow beef demand in the market.

In fact, imported beef consumption (amount of beef distributed in the market based on imports and the end of month inventories) during September was down 5% from last year to 47,654 tonnes (boneless equivalent).

September was a tough month for Japanese businesses primarily due to bad weather, with the foodservice sector, large distributor of Australian frozen beef, recording an 0.8% sales decline compared with 12 months ago.

Imported beef prices higher in US

11 November 2011

Trading in Australian imported beef was relatively slow in the past week, with the prices being asked by Australian suppliers often higher than those by importers. In addition, the fluctuating exchange rate and uncertainty over the global financial situation made buyers hesitant. The 90CL cow indicator lifted almost 12¢ from last week, to 408¢/kg FAS, which was 22% above the same period last year.

The market for imported beef is currently trading at a premium to domestic beef, with an expectation that US lean prices will jump once cow slaughter slows. This bullish attitude for lean beef is further enhanced by US cattle prices, which this week traded 19-28% above the corresponding week last year.

Japan to decide on TPP

11 November 2011

Japanese Prime Minister Noda is expected to announce Japan's participation in the Trans Pacific Partnership (TPP) today (11 November 2011), despite strong opposition from JA (Japan Agriculture Cooperatives) and some 225 Diet members who refer to themselves as the "group to cautiously consider TPP".

It is likely that Noda will formally communicate Japan's decision to US President Obama during bilateral talks scheduled this weekend in Hawaii. Details including the negotiation schedule with other TPP members are not available at this stage.

The slight depreciation of the A$ from last week was welcomed by Japanese buyers, but their interest in Australian beef remained cautious this week, despite the upcoming higher demand season (late November and December).

In the Japanese wholesale market this week, US chilled steak ready (choice grade) traded at around 1,550 yen/kg, 23% below the same time last year and the lowest weekly average since March 2000. Increased availability, the stronger Japanese Yen against the US$ and slow beef sales appeared to have contributed to the low price. Australian chilled shortfed and middlefed striploins averaged 1,325 yen/kg (down 5% year-on-year) and 2,350 yen/kg (up 6%), respectively, this week. With unseasonably warm weather expected over the next couple of weeks, the trade is concerned about a slowdown in demand for hot pot items (mostly sliced shoulders and round cuts).

Live cattle exports up 20% in September

11 November 2011

Australia's live cattle exports during September increased 20% year-on-year, to 89,171 head, with exports to Indonesia totalling 55,613 head (Australian Bureau of Statistics).

Following 19,279 head in August, live cattle exports to Indonesia for September were up 10% on the same period last year, to 55,613 head. For the first nine months of 2011, exports to Australia's largest live cattle markets totalled 296,452 head - down 30%, or 128,000 head below the corresponding period in 2010.

Other markets to record shipments during September included Egypt (18,000 head), Japan (1,769 head), Malaysia (1,615 head) and the Philippines (1,604 head).

For the first nine months of 2011, Australian live cattle exports totalled 502,711 head - down from 639,737 head for the same period in 2010. In terms of export returns, shipments in 2011 have been valued at A$437 million FOB.

Yearling steers come in heavy

11 November 2011

National yearling steer numbers since the beginning of October have eased 2% year-on-year at physical markets reported by MLA's NLRS. Over the past six weeks, the quality of yearling steers has improved with heavier, better quality cattle generally turned off.

The recent warm and sunny weather has allowed the ample numbers of yearling steers to thrive, as cattle quality responds to the growing pasture base. The proportion of heavy yearling steers (400kg +) increased 3% compared with the same period in 2010, while medium weights (330 - 400kg) were up 7%. Improved grazing conditions have resulted in lightweight (under 330kg) steer numbers declining 15%, with producers in the eastern states choosing to offload heavier finished cattle.

Restocking competition has been prominent, yet nationally the number of steers returning to the paddock fell 19% - mainly as more prime cattle were presented to buyers. Justifying this was the 20% increase in processor purchases and the 5% fewer steers destined to feedlots. Conversely, WA markets defied the trend as restocking purchases increased threefold - with producers eager to re-establish numbers.

The general quality and condition of yearling steers has been excellent recently, with more adequately muscled and evenly finished cattle turned off. The number of cattle in 4 score fat condition increased 10%, while the number of C muscled pens rose 3%. This is a result of grass fed yearlings reportedly having greater daily weight gains, while also adding much needed fat cover.

Downward revision for US beef production

10 November 2011

United States (US) beef production is forecast to reach 11.98 million tonnes in 2011 and 11.38 million tonnes in 2012, around 0.1% and 0.3% lower than previous forecasts respectively, according to the latest US Department of Agriculture World Agricultural Supply and Demand Estimates. A slowdown in US cattle slaughter late in 2011 and the reduced weight gain of cattle are stated as the key reasons for the downward revision.

For the beef trade, US import estimates for 2011 were raised slightly, to 921,166 tonnes cwt and 948,860 tonnes cwt for 2012. On the other hand, despite production expected to contract, US beef exports are estimated to reach 1.26 million tonnes cwt in both 2011 and 2012. The growth in exports is expected to occur mainly in Asian markets, supported by strong demand and the weak US currency.

The revised US production, import and export estimates are expected to have an upwards influence on prices, which are forecast to increase in 2012, driven by strong demand for cattle against the backdrop of historically tight supplies.

Korean market prepares for lunar year demand

10 November 2011

From 1-7 November this year Australian beef exports to Korea totalled 2,864 tonnes swt, with chilled beef making up only 19% (DAFF). Traditionally, export volumes to the Korean market ramp up at the end of the calendar year as importers prepare stocks ahead of Lunar Year (Seollal) demand - to be celebrated on 23 January 2012.

Similar to Chuseok - although to a lesser extent - Korean retailers sell beef gift sets as popular giveaways. Seollal is a family oriented, three day holiday that is used by many Koreans to return to their home towns to visit parents or other relatives.

Average prices for imported beef cuts in the Korean wholesale market were mixed this week - with prices for the most popular US beef cuts increasing on last week (HKJM).

Tag exemption ends

EXEMPTIONS from National Livestock Identification System tagging for cattle will be removed by the end of next year says The Weekly Times - and the sheep industry will come under increasing pressure to comply with electronic identification.

The Primary Industries Ministerial Council (PIMC) last week endorsed the recommendation regarding cattle from the Farmer Review, which was also supported by the NLIS (cattle) advisory committee and Safemeat.

It means cattle producers currently exempt must now use NLIS tags on all cattle from the end of next year. Late last week all states agreed to "cease exemptions", according to a communiqué released after the meeting.

The move has created little dissent from northern cattle producers in the wake of the Indonesian live export disaster, with traceability seen as a key to reopening trade with the country. Tasmania is yet to agree to enforce NLIS tags for bobby calves.

Export growth boosts MLA

Peak industry body Meat and Livestock Australia has overcome significant obstacles and posted a strong end-of-financial year position according to a report in The Weekly Times.

The paper says that despite the high Australian dollar, an uncertain global economy and a suspension on live cattle exports to Indonesia, the company's financial position remains strong.

The producer-owned service company highlighted achievements in growing exports to non-traditional markets and the overall worth of the Australian red meat industry in its 2010-11 annual report, released last week.

MLA managing director David Palmer put the result down to "prudent financial management". "We recorded a surplus of $0.9 million that took our total retained surplus to $56.4 million," he said.

AACo push for national body

AUSTRALIA'S largest cattle company is calling for reform of the beef industry's representative body, after the Indonesian live export crisis according to a report in The Weekly Times.

The Australian Agricultural Company is leading a push for a directly-elected national industry body. The paper says that under AACo's proposed model the biggest producers would get the most votes.

According to AACo managing director David Farley, the recent Indonesian live cattle export crisis highlighted the urgent need for Australia's cattle industry to have a more responsive Cattle Council of Australia.

In a statement released last week Farley said the structure of CCA "urgently needs to be reformed from the current state-based farm organisation membership model to a more directly-elected cattle producer membership model".

Major changes tipped at MLA's AGM

CATTLE industry representation is expected to come under fire at Meat and Livestock Australia's annual general meeting to be held later this month according to a report in The Weekly Times.

The paper says that the November 17 AGM at Longreach in Queensland has been tipped to be a "major catalyst for change" by outgoing Cattle Council of Australia president Greg Brown.

The Indonesian live-export debacle, and its management by both MLA and industry lobby groups, including the peak councils, have sparked widespread concern amongst key stakeholders.

The Weekly Times understands moves are underway for a major restructure of CCA, which could see the organisation move to a direct membership model, instead of membership via state lobby groups that struggle to pay fees.

Calls are also expected to be made to boost CCA funds with part of the cattle transaction levy. Red Meat Advisory Council chairman Ross Keane will chair a special 90-minute session but said it would only discuss industry policies within peak councils, not propose any structural change.

JBS feedlot for sale

Australia's largest red-meat processor JBS Australia will close and sell the Yambinya feedlot in southern NSW in a bid to reduce costs and improve efficiency gains according to The Weekly Times.

Located about 80km west of Deniliquin, the paper says that Yambinya is JBS Australia's only multi-species feedlot, producing lamb, beef and goats for JBS Australia's processing plants.

The 2830ha site comprises farming and backgrounding, allowing full integration between preparing livestock to enter the feedlot and supply of feed commodities maximising animal performance and quality, according to JBS Australia's website.

Yambinya has a capacity of 12,000 cattle and 40,000 lambs and employs 33 people. In a notice to the market issued by parent company JBS SA, Australian operations chief executive Iain Mars described the proposed sale as a consolidation designed to generate more value for company shareholders.

Ludwig's call on export ban

FEDERAL Agriculture Minister Joe Ludwig has admitted the controversial - and short-lived - suspension of live cattle exports to Indonesia was his decision according to The Weekly Times.

When quizzed about the live trade ban during question time at a Rural Press Club of Victoria breakfast, Ludwig said it had been his call after graphic footage of animal cruelty in an Indonesian abattoir aired on ABC's Four Corners program.

But he refused to guarantee that he would keep the trade open permanently. "What we had was some pretty shocking footage that the community saw on the Four Corners program," Ludwig said

When asked if he would guarantee that live exports would not be banned permanently, Mr Ludwig was evasive and said only that "industry had not stepped up to the plate" and with new controls, the industry now had "a bright future".

Studs sold on Lambplan

POLL Dorset studs that use Lambplan performance recording have outsold non-Lambplan studs by a whopping $227 per ram in spring auctions according to a report in The Weekly Times.

The higher average is based on the results of 44 auctions covered by The Weekly Times. These reports were compiled from auctions in south-east South Australia, Victoria and southern NSW.

From these reports, the 23 Lambplan studs achieved an overall stud and flock ram average of $1274 on a clearance of 95 per cent - or 2162 rams from a total offering of 2274 rams.

The 21 non-Lambplan sales averaged $1047 on a 93.7 pc clearance, or 1970 rams from a total of 2102 rams. The general manager of Sheep Genetics, which administers Lambplan, Sam Gill, said he was not surprised with the sale results. "There is an increasing number of producers who see value in Lambplan data," he said.

PertGenetics dispersal success

THE first stage of the much-anticipated PertGenetics dispersal recorded an astounding average of $2222 and 97 per cent clearance according to a report in The Weekly Times.

In all, 187 of 192 Black Simmental and Sim-Angus females sold to a top of $10,000 for a Black Simmental heifer on Wednesday. The sale was held on property at Glenaroua by stud principals, Martin and Jane Grimwade and Martin's mother, Joan.

A total of 93 Black Simmental females, including cows with calves and heifers, returned an average $2641 while 94 Simmental-Angus (PertPlus) cows with calves and heifers averaged $1808.

In the PertPlus sale, bidding reached $4250 for a grand-daughter of GW Lucky Dice, sold with a bull calf at foot. Morrocdong Partners, Ballan, was the buyer. Grimwade said the result reflected the changing landscape of stud and commercial breeding.

MSA crusader sees Woolies move a ‘decisive turning point'

Like him or loathe him, Western Darling Downs cattleman Lee McNicholl has been an MSA crusader over the past decade, fighting long and hard to see the program deliver on its considerable potential. And he hasn't always had a lot of support.

But by January next year, online news service beefcentral.com says not only Woolworths, but most other significant corporate level supermarket retailers will have embraced the system.

The expanding Aldi supermarket network, through its Branaghan's brand, for example is also fully integrated into MSA, as is the independently-owned IGA network, and the "new kid on the block," global discount retail giant, Costco.

In Lee McNicholl's view, the war has been won. "When I read Beef Central's report last Friday that Woolworths is to embrace MSA across its 850 outlets, I came away with a sense of elation. I'm sure many other producers felt the same," he said.

How global demand is changing the ballgame

"Here's food for thought," says The Wall Street Journal. "Despite being fed a steady diet of conflicting news about the global economy, consumers around the world are still tucking into pricey steaks and juicy pork chops with gusto."

Online news service beefcentral.com says the article attracted the attention of Chicago Mercantile Exchange analysts Steve Meyer and Len Steiner, who wrote "it often helps to take a step back and look at the world around you".

Meyer says the US Department of Agriculture reports the world cattle inventory in 2012 is forecast at 1.018 billion head - 1.4pc less below 2000. Productivity increases have allowed producers to extract more beef from smaller herds but the reality is that in 2012 there are fewer animals than 12 years ago.

Now consider the global demand side of the equation. Since 2000, Meyer says world gross domestic product (GDP) has gone from $32.2 trillion to $63 trillion in 2010. The population has risen from about 6 billion in 2000 to about 7 billion today. That is an almost 17pc increase in humans to be fed while cattle inventories have declined.

Pastoralists brand Wilkie bill ‘a cheap political stunt'

WA's Pastoralists and Graziers Association (PGA) has pulled no punches in its assessment of independent Andrew Wilkie's push to legislate mandatory stunning in export markets, branding it a "cheap political stunt" says online news service beefcentral.com.

PGA president Rob Gillam said the move was nothing more than "a futile attempt of political pandering" by Wilkie to his Green electorate which came at the expense of Australia's hard working livestock producers.

"Mr Wilkie and his small group of anti-live export zealots are well aware that there is no hope of this Bill being passed because neither the Government nor the Opposition will support it," Gillam says.

"So one has to ask the question, why introduce it in the first place? Wilkie is only trying to score political points from the Greens voters in Tasmania and is not above destroying the livelihoods of thousands of hardworking livestock producers in WA to maintain his own political future."

Dollar's steep climb puts brakes on processor offers

A 12 pc rise in the value of the A$ during October, capped by a late blitz on Friday when it jumped 3.5c overnight, has been enough for export processors to throw up the shutters and start retreating from progressively higher grid price offers evident since mid-winter says online news service beefcentral.com.

Both JBS and Teys Australia on Friday dropped their grids for grassfed ox, ex southern Queensland, by 5c/kg, in the first sign of a fundamental correction in the market since August. The prospect was identified in Beef Central last Tuesday.

Teys Australia took the unusual step of temporarily withdrawing its SEQ grid on Friday, preferring to wait a day or two to see whether the dollar's erratic behaviour might pass before making further cattle buy offers.

One exporter said on current numbers, his business was in the red on grassfed ox to the tune of 30c/kg, worth around negative $100 a head. Unfortunately, international demand, too, will inevitably suffer from the latest currency movement.

EYCI up 5.2c to 401.75c

AFTER Monday's markets the Eastern Young Cattle Indicator (EYCI) was 5.25¢ higher for last week, breaking back through the 400-cent barrier to close on 401.75¢/kg cwt according to a report in The Land.

The trade steer indicator was 3¢ lower on 211¢ and feeder steers gained 8¢ - to 217¢/kg lwt. Heavy steers were 2¢ lower on 193¢ and medium cow prices fell 3¢ - to 149¢/kg lwt.

Numbers were higher at Toowoomba and all buyers were operating. Throughput was up slightly at Tamworth, with quality fair.

The paper says that supplies were lower at Wagga, and the regular buyers there were forced to compete in a slightly dearer market with feeder steers firm, as the medium weights sold from 201¢ to 219¢/kg.

Bouncing dollar a concern for livestock markets

The Land says it could be an interesting final two months of 2011 for national cattle and lamb markets, with the recent rebound of the dollar the adverse market influence that could serve to offset what could possibly be the second consecutive wet finish to the year, according to Meat and Livestock Australia.

While global beef demand is still well below the corresponding period last year, available cattle supplies will be a major focus for the remainder of the year, especially if there is an early start to the northern wet season, an MLA spokesman said.

In contrast, for the lamb market, the real test of buyer demand will come when the first sustained run of hot weather arrives across the southern states, which in many previous years had already occurred by late October, he said.

Last week the EYCI edged back above 400c, as the continued above average season across almost all regions, combined with forecasts for more rain across key regions, sustains demand from restockers and feeders.

Butchers are back

WITH an increasing demand for value-added products, butcher shops are once again proving very popular in the marketplace according to a report in the Queensland Country Life.

Michael James, owner and manager of Carina North Quality Meats in Brisbane's eastern suburbs, said independent butcher shops had made a comeback in the past five or six years.

For James, value-added products now represent 25 to 30 per cent of his business. "Value-added products are the way of the future for me," he said. James also praised Meat and Livestock Australia's MSA grading system.

Despite the upswing in consumer confidence and buying patterns, James said there were still many challenges within the industry placing pressures on butcher shops.

His electricity bill had recently increased eight per cent, and workers' insurance had increased from $3000 to $12,000 in the past five years.

MLA UPDATE

Friday daily livestock article

04 November 2011

Numbers were steady at Roma Prime with some regular export buyers absent. Heavy yearling heifers to the trade were 2¢ cheaper on 179¢, and most yearling steers made 192¢/kg. Medium grown steers were 2¢ down on 190¢/kg. Medium weight cows averaged 140¢ and topped at 163¢/kg.

Supplies lifted at Dubbo in a plainer quality yarding however extra competition assisting prices. Medium weight yearling steers to feed mainly sold from 205¢ to 225¢, as restockers prices ranged from 221¢ to 237¢/kg. Heavy grown steers ranged from 180¢ to 187¢ and heavy cows generally sold around 152¢/kg.

The Bairnsdale yarding was smaller and quality improved. Light and medium yearling steers sold from 191¢ to 206¢, while the heavy pens made between 188¢ and 194¢/kg. Yearling heifer prices were firm to slightly dearer averaging from 167¢ to198¢/kg. The heavy beef cows returned $157¢/kg.

After Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 0.50¢ lower for the week on 400.5¢/kg cwt. The trade steer indicator lost 6¢ - to 208¢ and feeder steers were 3¢ cheaper on 214¢/kg lwt. Heavy steer prices averaged 2¢ lower on 192¢ and medium cows were 4¢ back on 146¢/kg lwt.

Lamb and sheep numbers were lower at Wagga, with an increased supply of lightweight lambs. Light lambs to restockers ranged from $85 to $106 to be up to $2/head cheaper. New season trade lambs were mostly firm, ranging from $115 to $146/head or averaging 495¢ to 532¢/kg cwt. Medium weight Merino ewes ranged from $55 to $103 to be $5/head cheaper.

At the close of Thursday's markets the eastern states restocker lamb indicator was down 12¢ for the week - to 541¢/kg cwt. Merino lambs were 6¢ higher on 451¢ while light lambs lost 8¢ - 502¢/kg cwt. Trade lambs were 8¢ lower on 502¢, while heavy lambs were also down 8¢ - to 488¢/kg cwt. Mutton prices decreased by 13¢, averaging 363¢/kg cwt.

Brazilian herd up in 2010

04 November 2011

The Brazilian cattle herd grew 2.1% in 2010, totalling a record 209.5 million head (as of 31 December 2010), according to recent data from the Brazilian Institute of Geography and Statistics (IBGE).

Although the trend is similar to other agencies, total stock figures differ. In particular, the United States Department of Agriculture estimates 2010's herd at 191 million head, while local consultant Informa Economics FNP has estimated the 2010 Brazilian herd at 174 million head.

IBGE's figures confirm the continued movement of the herd to the north of Brazil, as the herd in the northern region grew 4% on 2009, while in the more productive land of the southeast, the herd grew only 0.6%, while in the south the herd decreased 0.1%.

The rise in Brazilian cattle numbers follows a retention period - demonstrated through the decrease in the female slaughter rate - which commenced in 2007, after a liquidation period in the mid 2000's. During the liquidation phase, a considerable proportion of the herd was sent to processing plants, as cattle prices were low, domestic and international demand boomed and producers shifted to other agricultural industries with higher profitability.

Although different sources forecast the recovery of the Brazilian herd to continue in 2011 and 2012 (as a result of the current high cattle prices and positive prospects in the industry), IBGE has actually reported higher female slaughter rates in 2011 as processors increase capacity utilisation with female cattle.

Firm prices for Japanese buyers

04 November 2011

Improving beef demand from the US and other markets reportedly lifted offer prices for Australian beef to Japan this week. Interest for frozen beef was particularly strong across the markets, with Japanese buyers having to compete for 85CL and other popular items in order to secure products for the higher beef demand season (late November and December).

While there was more media speculation on the US/Japan beef trade negotiations this week, no official confirmation has been made by the Japanese government in relation to the revision of the current protocols. Increasing offer prices from the US and strong demand for beef internationally remain a concern for Japanese buyers, but some sectors, including the yakiniku (Japanese/Korean barbecue) sector, are keenly anticipating any change in protocols for US beef.

The US beef issue has become a highly politicised agenda in Japan, especially in relation to Japan's debate about participation in the Trans Pacific Partnership (TPP). Prime Minister Noda stated in an Upper House plenary session this week that TPP would have additional effects on Japan's Gross Domestic Product, but anti-TPP Diet members of ruling and opposition parties are scheduling to hold an anti-TPP meeting next week in Tokyo.

Male cattle throughput in Queensland surges

04 November 2011

Cattle prices eased marginally this week, both for saleyard and direct to works quotes, with the higher male cattle throughput in Queensland of recent weeks, along with the volatile A$ having some influence upon the market. National heavy steers averaged 3¢ lower this week, at 346¢/kg cwt, while the EYCI remained above 400¢ for the entire week.

Queensland average weekly cattle slaughter, as reported by MLA's NLRS, increased during October, averaging 10% higher on the same period last year. However, the main feature was the 13% year-on-year increase in the number of male cattle available for processing during October, which has helped to offset constrained cow offerings (up 4% year-on-year).

For the final week of October, Queensland male cattle slaughter, at 54,440 head, was the highest weekly total since July 1999, with most coming in much heavier than in previous years. While the run of better seasonal conditions has helped to facilitate the recent surge in male turnoff, it may also be a case of cattle finally emerging, that in previous years, would have been processed in late winter and early spring. Additionally, the higher prices of recent weeks may have spurred some producers into selling mode, along with not wanting to be caught again with market ready cattle over the summer period - especially if the forecast wet conditions return to disrupt cattle movements.

The lamb market was largely steady this week, with a 6% decline in yardings, helping to sustain prices. Nationally, trade lambs averaged 1¢ lower at 502¢, while heavy lambs slipped 5¢, to 486¢/kg cwt.

World beef production set to remain stable

04 November 2011

Total world beef production is forecast to remain relatively unchanged in 2012, at 56.8 million tonnes cwt. According to the United States Department of Agricultures' (USDA) Livestock and Poultry: World Markets and Trade, a forecast decline in US beef production will be offset by higher production from India, Brazil, Argentina and Australia.

As a result of the much improved pasture conditions and fodder supply, Australian producers have looked to take advantage of the improved season and rebuild their herds. Although carcase weights are expected to fall slightly in 2012, Australian beef production is anticipated to increase 2% year-on-year on the back of higher slaughter, to 2.2 million tonnes cwt. 

Production in the US is forecast to fall 5% year-on-year, to 11.5 million tonnes, with tight supplies of slaughter cattle and lower calf numbers driving the fall. However, the decline in US production is expected to be largely offset by gains in India (up 7%, to 3.3 million tonnes), Brazil (up 2%, to 9.2 million tonnes) and Argentina (up 4%, to 2.5 million tonnes).

Total beef exports are forecast to rise 5% in 2012, to 8.2 million tonnes cwt, on the back of stronger global demand, particularly from South East Asia, the Middle East and North America. According to the USDA, India (1.28 million tonnes) is expected to account for nearly half of the world's export growth in 2012, with price competitive shipments increasing to emerging markets.

Despite a relatively strong A$ and robust domestic demand, Australian beef exports are expected to increase moderately in 2012, to 1.38 million tonnes cwt, underpinned by increased production. Brazilian beef exports are forecast to reach 1.375 million tonnes in 2012, with the US at 1.25 million tonnes cwt.

Russia is again expected to be the world's largest beef importer in 2012, forecast to receive 1.06 million tonnes cwt, ahead of the US at 948,000 tonnes cwt and Japan with 725,000 tonnes cwt.

US imported beef prices kick

04 November 2011

There was a noticeable kick in US imported beef prices this week, as buyers chased more product - which was reportedly met with renewed vigour by suppliers.

Imported 90CL beef prices jumped 4% this week, to 197US¢/lb CIF, with indicative prices across other categories rising by a similar margin. In A$ terms, indicative 90CL beef prices hit their highest level since early April, at 396.1¢/kg FAS.

The recent jump in imported beef prices can be partly attributed to higher US domestic lean beef prices, which have risen 8% since the start of October. Domestic US beef prices increased again this week, with 90CL and 85CL boneless beef up 2¢ and 3¢, respectively.

US cold storage stocks up 5%

04 November 2011

The latest United States Department of Agriculture Cold Storage report reveals that US stocks of frozen meat and poultry in September grew 5% compared with the previous year. The greatest increase came from pork inventories, which rose 11% on August levels and 16% on September 2010.

The most predominant cut in frozen pork inventories was "other pork", which increased 10% on August and 30% on the same time last year. The higher pork stocks have mainly been driven by the surge in US pork exports, as butts go to freezers before being shipped abroad, while belly stocks have been replenished after last year's historical low. 

Total red meat stocks increased 5% on August and 12% compared with September 2010. Total stocks of frozen beef were up 8% year-on-year to 428 million pounds, with the majority made up of boneless beef (363.6 million pounds).

Total September frozen poultry supplies decreased 3% from August, but rose slightly year-on-year due to increased stocks of frozen turkey.

Export cattle prices ease

04 November 2011

Grown steer and cow prices at physical markets reported by MLA's NLRS have eased over the past fortnight. The appreciating A$ and mixed export demand have combined to reduce processor demand with several processors spectating and not entering the market this week.

Cow yardings have recently eased, with eastern states yardings falling 15% week-on-week, with the majority of supplies recorded in NSW. The condition and weight in most cow drafts have been good, with 48% being heavy weights.

Prices have eased after peaking in early October, and after Thursday's markets, the eastern states heavy steer indicator was 2¢ lower on 192¢/kg, but still 7% higher year-on-year. Medium weight cow prices were marginally lower on 146¢/kg and 5% above last year. Despite the recent easing in demand, prices remain higher year-on-year with strong global demand for manufacturing beef underpinning the market.

October cattle slaughter down

04 November 2011

Eastern states average weekly cattle slaughter as reported by MLA's NRLS fell 6% on the five-year average during October, yet remained steady on the previous year.

Queensland average throughput increased 10% compared with last year, as over the past fortnight numbers trended higher. Slaughter numbers were stable compared with the five-year average, despite supplies of prime cattle limited in some regions. Female slaughter continued to be tight, with producers still looking to retain breeding females.

NSW average weekly slaughter was historically low, falling 10% below the five-year average. Repeated and widespread rain during October increased store demand, with restockers paying higher prices for replacement stock. The added store competition contributed to average weekly slaughter falling 20% on last month, with more cattle left in the paddock for breeding.

Victorian average weekly cattle slaughter followed the easing trend, dropping 19% on the five-year average, and easing 8% year-on-year. Store market demand and the desire to rebuild herds affected the supply of prime cattle. It was a different story in SA, as slaughter volumes increased 4% on the five-year average and 5% year-on-year.

Processor demand softens

04 November 2011

While disrupted cattle supplies during the past week resulted in some mixed prices throughout markets, values were slightly lower for young cattle. Processor competition eased, and this was highlighted by several Queensland and NSW processors lowering direct to works rates.

After Thursday's market, the benchmark Eastern Young Cattle Indicator (EYCI), finished 0.5¢ lower than a week earlier at 400.5¢/kg cwt - or 10% higher year-on-year. Nationally, restocker purchases of lightweight yearling steers averaged 4¢ dearer than last week, at 207¢, while heifers were 14¢ higher 194¢/kg lwt. Medium yearling steers to feeders sold around 203¢, while the heavy C3 pens to the trade made 198¢/kg lwt.

Hide market drops

04 November 2011

Hide prices were again weaker as the climbing A$ affected the local market.

The overall weakening of the hide market was also due to the uncertain economic conditions in Europe. As a result, international trading volumes have been low, with raw product supplies in storage growing.

Better trading for US restaurants

03 November 2011

In September, the Restaurant Performance Index published by the National Restaurant Association in the US passed 100 for the first time since June, reaching 100.1. For this index, anything over 100 indicates an expansion in the sector, and below is a contraction.

In the 12 months to September, 50% of restaurant operators reported an increase in sales compared with 45% in the 12 months to August. This reflected greater customer traffic reported for the same period.

There is also more optimism among restaurant operators, with 37% expecting to have higher sales to report in six months, when compared with year-ago results. This is an improvement on the 33% who had the same outlook in August.

Australian beef exports up 14% in October

02 November 2011

Australian beef and veal exports during October increased 14% year-on-year, to 83,823 tonnes swt, as a lift in cattle throughput and estimated beef production facilitated an improvement in available supplies (Department of Agriculture, Forestry and Fisheries - DAFF). Demand for Australian beef reportedly increased marginally to most markets during the month, assisted briefly by the lower A$ throughout the first half of the month.

While this was the largest October total for the past three years, it was still well below 2006-2008 levels, when shipments averaged just above 90,000 tonnes swt for the three years. Indeed, the 14% increase for the past month was partly reflective of the constrained volumes shipped in October 2010, when widespread rain reduced available cattle and beef supplies.

Underpinning the 14% year-on-year increase for the month was a jump in cattle slaughter and beef availability. Indicative average weekly Queensland cattle slaughter for October, as reported by MLA's National Reporting Service, was up 10% year-on-year, while the eastern states throughput was up 3% for the same period. Interestingly, average weekly Queensland adult cattle slaughter statistics for October showed that male throughout was up 12% year-on-year, while female throughput only increased 3%.

Added to the additional number of cattle processed during October was the influence of heavier carcase weights, reflective of the much better seasonal conditions. According to production figures released by the Australian Bureau of Statistics, monthly average cattle carcase weights for the first eight months of 2011 were up 3.5% - with this heavier trend expected to be sustained for the remainder of the year.

Exports to both Japan and Korea increased during October, up 9% and 26%, respectively, on the corresponding period last year. Shipments to Japan, at 29,750 tonnes swt, while encouraging given the very tough market conditions of recent months, were still 6% below the average for the past five years. Exports to Korea continued to track at historically high levels, despite the increased presence of US beef, with the 12,237 tonnes swt the highest monthly volume since March.

While the DAFF export statistics for October showed that year-on-year Australian beef shipments to the US increased 36%, this could be very misleading if not put in a historical context. Exports for October totalled only 12,196 tonnes swt, and while this was up from 8,951 tonnes swt for the same period in 2010, it was still 44% below the average for the past five years. Indeed, for the period of 2000 to 2009, Australian beef exports to the US during October averaged 30,729 tonnes swt, peaking at 39,191 tonnes swt in 2001 (when the A$ averaged 50US¢).

For the first 10 months of 2011, Australian beef exports to the US have contracted 19%, to 135,139 tonnes swt - on track to be the lowest calendar year volume since the mid 1960's.

Most South East Asian markets registered a year-on-year increase in Australian beef exports for October, including Indonesia (up 8%, at 4,429 tonnes swt), Hong Kong (up 223%, to a record 1,473 tonnes swt), Malaysia (up 22%, to 1,215 tonnes swt) and Singapore (up 144%, to 1,157 tonnes swt). A record amount of beef was also shipped to China during October, rising 86% year-on-year, to 1,058 tonnes swt.

Exports to the Commonwealth of Independent States, particularly Russia, totalled 4,391 tonnes swt during October. While this was back 56% on last year's very large 9,995 tonnes swt, it was the second largest October volume on record.

Continuing the trend of recent years, Australia's beef exports are diversifying away from the traditional big three of Japan, the US and Korea. For October, 35.4% of all exports went to "other markets", totalling 29,640 tonnes swt.

For the first 10 months of 2011, while total beef and veal exports were up 3% year-on-year, to 777,393 tonnes swt, exports to "other markets" increased 22%, totalling 242,367 tonnes swt - making up 31.2% of all shipments.

Beef imports into Japan down 15% in September

02 November 2011

Sufficient frozen beef stocks seem to have slowed the volume of beef imports into Japan during September. Frozen volumes fell 25% year-on-year to 26,205 tonnes swt, while chilled intake increased 6% to 18,182 tonnes swt (data released by Japan's Ministry of Finance).

Total imports during the month declined 15% from 2010 to 44,387 tonnes, with volumes from Australia and New Zealand falling by 16% (to 28,546 tonnes) and 51% (to 1,352 tonnes), respectively. Shipments from the US improved 3% on last year to 11,550 tonnes.

Imported frozen beef stocks as of the end of August were up 20% year-on-year and the highest since November 2002, at 78,941 tonnes (boneless equivalent). The high inventory possibly influenced the trade to focus more on chilled beef during the month, particularly products from the US, while the Japanese yen continued to be strong against the weak US$.

As a result, chilled beef imports from the US increased by 49% from last year to 5,862 tonnes, while chilled volumes from Australia declined 6% to 11,401 tonnes, pressured by the resilient A$.

Malaysia's beef imports on the rise

02 November 2011

Beef imports into Malaysia during August increased 3% year-on-year to 9,976 tonnes swt, lifting total imports for the first eight months of 2011 by 11%, to 76,644 tonnes swt. Beef imports into Malaysia from major countries all increased during January to August, including India (up 12%), Australia (up 41%) and New Zealand (up 29%).

During the eight months to August 2011, Indian buffalo continued to dominate Malaysia's imported beef market, accounting for 81%, followed by Australia (13%) and New Zealand (3%). Indian buffalo meat is traditionally sold through retail (traditional/wet markets), with a smaller proportion in foodservice (institutions and quick services).

In contrast to the frozen segment, Australia dominated the chilled beef trade between January and August 2011, with an 85% share of the imported market, while New Zealand accounted for the remaining 14%.

Philippines beef imports increase in September

02 November 2011

Philippine's beef imports during September increased 10% compared with the same period in 2010, to 9,964 tonnes swt. Imports from most markets improved year-on-year, except for the US (down 21%) and India (down 8%) (Philippines' Department of Animal Industry).

In the nine months to September 2011, beef imports fell 10% year-on-year to 73,424 tonnes swt, largely due to falls in imports from India (down 17%), Australia (down 1%), US (down 8%) and Brazil (down 43%).

According to industry sources, meat safety issues were on the rise in the Philippines in September, following the Bureau of Animal Industry's ban on US ground beef originating from several US states (due to E.coli contamination) and reports on the mishandling of local pork and chicken in wet markets. As a result of the food safety concerns, demand for Australian beef is expected to remain strong for the rest of 2011.  

Wholesale Australian chilled beef prices in the Philippines during September were reportedly stable compared with August. Australian chilled tenderloin prices averaged 1,100 peso/kg (A$24.80/kg), while US chilled tenderloin prices averaged 1,890 peso/kg (A$42.63/kg). Prices for frozen Australian striploin, ribeye and rump remained firm, averaging 700 Peso/kg (A$15.79/kg), 900 Peso/kg (A$20.30/kg) and 450 Peso/kg (A$10.15/kg), respectively.

Canada optimistic on Korean market access

01 November 2011

Last week, the Canadian Agriculture Minister was reported as being optimistic that South Korea will open its market to Canadian beef by the end of the year and was willing to kick-start stalled free trade talks (Reuters). 

In June this year, both countries announced they would finalise the science based agreement to allow Canada to export beef to the Korean market from cattle under the age of 30 months. Korea is the last Asian market that still imposes a trade ban on Canadian beef after BSE was found in Canadian cattle in 2003.

While Korea lifted their ban on US beef exports in July 2008, the ban on Canada was kept in place. Subsequently, Canada filed with the World Trade Organization (WTO) a request for consultations, and in July 2009 a WTO dispute panel was established. Although a ruling was expected in July 2011, both countries agreed to suspend the WTO process while negotiations continued.

Strong Korean beef imports in September

01 November 2011

In September this year, Korea imported 29,638 tonnes swt of beef, with chilled beef accounting for 14% of the total volume (KITA). 

Beef imports decreased 6% on August, the largest monthly import volume this year. While Chuseok (Harvest Festival) celebrations were held only 10 days earlier this year, compared with last year, beef imports in September jumped 57% year-on-year. Imports of Australian beef in September totalled 14,926 tonnes swt, and the highest monthly import volume for Australian beef this year. 

The Korean beef market has expanded rapidly this year - increasing 23% from January to September this year on the same time last year.

For the period, Australia's market share decreased from 52% last year to 49% this year, while the US, New Zealand and Mexico accounted for 37%, 12% and 2% of total beef imports this year.