Weaners hot but can it last?

Weaner sales have been red hot so far this year, according to a report in The Land, but some agents are now suggesting these prices may start to run out of steam in the next week or two.

Lehman Stock and Property principal Ben Lehman, at Inverell, says prices for young, lightweight cattle have risen to as much as 230 cents a kilogram in recent weeks, and heavier weaner steers are making between 200 and 210 cents - but says he is unsure if these prices are sustainable.

He told the paper that numbers have been quite good recently, but the weaner market looks are though it is going to come off the boil - which he puts down to a deteriorating season in his district.

But more southern agents are a little more optimistic, and right now prices are up as much as $100 on the same time last year, with calves bigger and presentation of weaners better because of the season.

End for bogus cattle barons

A husband and wife have been imprisoned according to a report in The Land following one of the biggest rural fraud cases in NSW history - which was only uncovered by a bush cop calling into the property to say "g'day".

The paper says that the guilty couple - Clifford Roger Cicolini and Sharyn Louise Cicolini - reeled in millions of dollars from banks by claiming they owned 10,000 beef cattle, which did not exist.

He will serve a minimum two years and four months in prison, while his wife will serve a minimum of 18 months after being found guilty of five counts of obtaining benefit by deception and both will be on parole for a year after their release.

Nyngan based Sergeant Paul Roberts spent three years proving the Cicolinis had deceived banks about non-existent cattle supposedly worth $4.5 million after his visit rang a bell about their name and breached bail conditions when the Cicolinis moved from Queensland to western NSW several years ago.

AACo folds another chair

The nation's biggest beef cattle business, Australian Agricultural Company, is looking for its fifth chairman in two years after incumbent leader Stephen Lonie resigned from the board this month after just 10 months in the job says a national Rural Press report.

Lonie vacated the chairman's seat in the first week of April and left the board days later, while Queensland cattleman Peter Hughes has also announced he will not seek re-election of his board position at the company's May 19 AGM.

The report says that according to one board member, who did not want to be named, Lonie left the chairmanship because he felt his mandate to help with the transition of AACo had been satisfied.

AACo is transforming its cattle enterprise towards a business focused more on fattening and selling cattle and less on breeding its own stock, and this year bought in an extra 40,000 head on the back of a big summer rain.

Best brains tackle foot and mouth

The world's best brains on foot and mouth disease (FMD) met in Melbourne recently for an international workshop to discuss the latest developments in FMD research and control says The Land.

And the paper says that the three-day event got off to a good start with a new $5 million program announced to study FMD vaccines in neighbouring countries  and their suitability for use in Australia.

In the new program, Australian livestock industries will fund collaborative research to enhance the nation's FMD vaccine bank by working at trial sites in South Africa on sheep vaccines, Vietnam on pig vaccines and Argentinean beef vaccines.

It will be managed by Animal Health Australia, with the research carried out by CSIRO scientists from the Australian Animal Health Laboratory. It has been estimated more than $20 million has been spent in Australian on FMD preparedness in recent years.

Australian beef cashes in on US supply glitch

A combination of supply factors has driven imported grinding meat prices dramatically higher in the US over recent weeks says Queensland Country Life, with the overall trend up 40 pc since October last year.

Analysts say some manufacturing meat lines, like insides, jumped US35 cents a kilogram in value since early April, as US end-users struggled to secure available supply, This has led to a bullish mood in the imported grinding beef market as the northern hemisphere summer grilling season draws closer.

MLA North America manager Scott Hansen says the surprising recent jump in prices has almost entirely been driven by factors including low kill rates here, diversion of South American markets into Russia and low US domestic beef production.

Hansen s that the recent price rises for beef had occurred despite an abundance of chicken on the US market and the continuing high level of the Australian dollar, which has again gone through $US0.93.

Demand push for DNA markers

Building awareness and demand amongst red-meat retailers and food-service operators is the emerging challenge for Australia's only beef brand built around cattle genetically selected for tenderness says Queensland Country Life.

The TendaBeef program is the brainchild of progressive Blackall district cattleman Ashley Adams, who is gradually gaining supply support amongst fellow commercial beef producers across Queensland.

Adams has selectively bred cattle for the past seven years based on DNA meat tenderness marker results taken from hair samples, to the point where the majority of his turnoff now meets his predetermined GeneStar tenderness score benchmark.

Product meeting this criterion is marketed under the TendaBeef program, which could soon grow in capacity to 200 carcases per week, but which Adams says now needs some wholesale/food service "champions" to provide a pull-through effect.

How DNA helps beef pass the tender test

Participants at Pfizer's recent DNA testing information day sampled beef from one of Ashley Adam's steers - in this case a Santa cross which produced a result in the top 20 pc of all breeds for tenderness says Queensland Country Life.

Adams says when he first started DNA analysis, just eight pc of his cattle reached acceptable tenderness scores. Through selection pressure, at least 75 pc of the herd now meets the tenderness benchmark of +0.2 (measured as WB shear force).

The paper says that the improvement has occurred not only through the selection of new sires carrying superior tenderness scores of zero, or negative, but also by removing those females with poor figures.

A new artificial breeding program has also started in Rockhampton, with eggs being harvested from superior tenderness performance commercial females to generate tailor-made herd bull replacements of various breed combinations.

Rain washes out liveweight gain

A report in Queensland Country Life says that coastal cattle in the Mackay-Whitsunday region are surrounded by a sea of lush pasture after massive January-March rainfall but many cattle are noticeably losing condition.

Department of Employment, Economic Development and Innovation industry development officer Jim Fletcher has just undertaken a practical assessment of the moisture content of several grasses on a number of properties to solve the puzzle.

Fletcher says most coastal grazing country has recorded in excess of 1500 millimetres this wet season, and sample testing in early March show a staggering 83 pc moisture content of some pastures.

He says a 450-kilogram liveweight breeder consumes around 2.2-2.5 pc of her bodyweight in dry matter per day to maintain weight. This equates to about 10-11 kilograms of dry matter. A pasture with 83 pc water content has just 17 pc dry matter.

The best of the west

Western Queensland cattle producers looking for quality bulls at reasonable prices are being advised to attend the annual Longreach All Breeds Bull Sale on Friday April 30 says Queensland Country Life.

A catalogue of 334 bulls from 15 breeds will be offered according to the paper, after the original March 19 event had to be postponed, along with other sales around the State, when the "big wet" set in.

Michael Smith, Elders stud stock Toowoomba, has been involved in the Longreach sale for the past five years and says the sale has a well-earned reputation for providing value for money with lots ranging from Brahman to Angus.

Smith says vendors come from as far away as Dubbo in NSW and the Darling Downs in southern Queensland and the region is enjoying one of the best summer seasons in years. The sale is restricted to one day and kicks off at 9 am.

Pastoralists cautious as rain brings fresh hope

The heavens have finally opened up for many of South Australia's pastoralists, who have been gripped by devastating drought for more than a decade according to a report in the Stock Journal.

There has been serious flooding in the north east corner of the State, with Innamincka having close to 300 millimetres for the year and water flowing into Lake Eyre for the second consecutive year.

Many valuable breeding stock, which had been sent away for agistment during the prolonged dry, have returned to areas which have been transformed in a couple of months from red dust to growing high-protein feed.

With green feed returning, station owners are optimistic about beginning to rebuild their herds and flocks but it will be a long road to recovery for many producers only at a third of their optimal carrying capacity.

Meat Profit Day bookings open

Livestock producers are being urged to register for Meat and Livestock Australia's Southern Meat Profit Day, which this year will be held at the Melbourne Showgrounds in Ascot Vale on April 30 says Stock Journal.

The event will be combine a conference, expo and trade show and gives livestock producers the opportunity to consult directly with international experts, industry leaders and researchers to gain knowledge of the latest red meat industry trends.

Among the topics to be discussed are breaking down the costs of red meat production, implications for profitable education in a carbon-constrained world, successfully integrating livestock and cropping, future farming, animal welfare, calf/lamb management to meet feeder market premiums and maximising eating quality.

The Day will also feature a red meat industry panel discussing issues facing the industry, with participants including Russian National Meat Association chief of the executive committee Sergey Yushin. Details and registration on 1800 675 717.

Junior heifer show offers new options

The committee of the Landmark CGU SA Junior Heifer Expo will trial a few new ideas at this year's event from July 12-15 says Stock Journal, to ensure it remains the premier all-breeds heifer expo in Australia.

Over the past 25 years about 3500 young beef enthusiasts from all states, and New Zealand, have converged on the Adelaide Showgrounds for four days of learning, and fun, with their animals.

Expo coordinator Jo McLauchlan says the aim of the heifer expo is to broaden the knowledge of young people interested in the beef industry, and to foster long-lasting friendships between competitors.

The prestigious major prize for the senior champion herdsman is a four-month study tour of North America, and the committee is working to establish a reserve champion trip to New Zealand. Entries at http://www.sabeef.com.au/ close on June 1.

BSE risk analyses under way

Three separate risk analyses are underway according to a report in Stock and Land, assessing the health risks of applications to import beef from the United States, Canada and Japan.

Biosecurity Australia began the separate risk analyses two weeks ago after the countries had applied for market access following a lifting of the restrictions on beef imports from countries which have bovine spongiform encephalopathy on March 1.

Last month the Federal government caved in to public pressure over the decision and imposed the tough new import risk analysis process to help safeguard public confidence in Australian beef production and the country's quarantine system.

The paper says that as part of the process, Biosecurity Australia scientists will visit the applicant countries, alongside Food Standards Australia New Zealand, to assess relevant issues, and an independent eminent scientists' group will review each analysis within the two years.

Cattle shipment docks in Russia

The biggest single shipment of Australian cattle ever sent to Russia, comprising 7150 head of mostly beef cattle, has now arrived in Novorossiysk according to a report in the Stock and Land.

The consignment on the MV Ocean Drover is made up of 2800 maiden Angus heifers by registered Angus bulls, 3000 Angus feeder steers, 40 registered Angus bulls, 1000 dairy heifers and 310 other beef breeds.

Wellard Rural Exports sourced most of the cattle from WA, but also added another 800 head from Victoria. A spokesman for the WA-based live export company says they will most probably need to go east to source future orders.

Wellard livestock trading general manager Gary Robinson has told the paper that the company hopes, and expects, that this groundbreaking shipment will be the first of a number of consignments to Russia.

Hide prices continue to bounce back

Hide prices are continuing to recover from the rock bottom levels reported at this time last year according to a report in the Stock and Land, and are currently sitting at their highest levels since last 2008.

MLA is reporting that green hide prices are now up to five times higher than at the same time last year, reflecting the severity of the fall of 2009 on the back of the global financial crisis; however prices still remain well below historical levels.

Furthermore, the paper says that there is some reluctance from overseas tanners to move rates to higher levels due to leather prices there failing to increase at the same rate as the green hide market.

The recent Hong Kong leather fair has provided some positive signs that the recent rises can be maintained but further rises will hinge firmly on the increased demand in the global leather market.

MLA UPDATE

Possible wet start to winter for eastern Australia

23/04/2010

The latest three-month rainfall outlook from the Australian Bureau of Meteorology (BOM) indicates the increased likelihood of a wet start to winter across eastern Australia, particularly in northern NSW and southern Queensland.

The BOM has assigned a 60-75% chance of above median falls throughout northern NSW and south east Queensland, which comes on the back of a very wet start to 2010 across most regions. With pasture and moisture profiles in mid-autumn the best for many years across most regions, the prospect of further rain throughout the coming three months should help to maintain the improved season.

The rainfall probabilities decline heading south and west, with most of southern WA being assigned a 40-45% chance of above median falls throughout May to July. Similar prospects are forecast for south east SA, Victoria and Tasmania, with many producers hoping for well timed rain to boost potential crop yields.

FMD halts beef exports from Japan

23/04/2010

Japan suspended exports of beef, pork and related bi-products following a discovery of the foot-and-mouth disease (FMD) on cattle farms in Miyazaki prefecture.

According to a report by Yomiuri Online, three Wagyu cattle at the farm had been confirmed as FMD positive on 20 April. Subsequently, three more cases have been reported from neighbouring farms as of 22 April.

Having established an FMD control response headquarters to implement their Guidelines for specified livestock infectious disease control regarding FMD, Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) has been updating daily the status on its website since the outbreak.

Japanese beef exports (namely premium quality Wagyu beef) grew by 108% in volume over the last two years, to 565 tonnes in 2009, valued at 3.78 billion yen (A$51 million, or an average of A$91 per kilo). Major export markets were Vietnam, Hong Kong and the US. Under the OIE (world animal health organization) rules, Japan can re-apply for FMD free status three months after the slaughter of infected animals.

The last reported occurrence of FMD in Japan was in 2000 (both in Miyazaki and Hokkaido Prefectures). Miyazaki Prefecture is located on the island of Kyushu (the southern most of the four main islands of Japan), and Hokkaido is the northern island of Japan.

Early US manufacturing beef price upswing

23/04/2010

Wholesale prices of domestic and imported boneless 90CL beef have already lifted to near record levels - two months before they seasonally rise for the year (United States Department of Agriculture).

US quick service restaurants are now nervous that wholesale ground beef prices will go above the records seen in mid 2008. Domestic and imported prices are already 14% and 15%, respectively, above April 2008, with no indication that prices will ease heading into the historically peak period of June.

Manufacturing beef supplies remain very tight, mainly due to lower imports from Australia. Other markets such as Japan and Russia have ramped up Australian product purchasing, making the market more competitive (particularly for 85CL). Exports to Japan so far this month are at 17,632 tonnes swt (data up to 19 April) and Russia has doubled its buying rate to 1,832 tonnes. Exports to the US for April are currently at 8,705 tonnes swt, compared with a total of 26,009 tonnes swt in April last year.

US quick service restaurants will become pressured to lift their product prices amid rising manufacturing beef prices, which will be difficult to do as a precedent for discounting was set during the economic downturn.

Korean wholesale market struggles with rib prices

23/04/2010

The Korean market reported another tough week for its most wanted item - short ribs. Prices for imported short rib have surged since the beginning 2010, primarily due to falling supplies.

Average wholesale prices for imported US grainfed short rib increased KRW500 (A$0.49) per kilogram this week, totalling KRW12,500 (A$12.14) per kilo. In the same week last year, US short rib was selling for KRW8,700 (A$9.12). In contrast, Australian grassfed short rib remained steady this week at KRW8,500 (A$8.27) per kilogram, but remained well above the corresponding period last year, when short ribs were selling for KRW6,000 (A$6.29).

Australian beef exports to Korea so far for April (1-19 April) totalled 5,900 tonnes swt, with the likelihood of exceeding last year's volumes (8,543 tonnes swt).

New outbreak of foot-and-mouth disease in Korea

23/04/2010

On Thursday 22 April, the Korean government confirmed another two cases of foot-and-mouth disease (FMD) at a pig farm and a small cattle and goat farm west of Korea's capital Seoul (Yonhap).

Korean quarantine officials have sealed off the pig farm in Chungju and the cattle and goat property on Gangwha Island, 147 and 60 kilometres from Seoul. The Korean government has started culling livestock on the two farms and those in the immediate vicinity to prevent further outbreaks and set up roadblocks to control animal movement (Yonhap).

The cattle and goat property is located 6.5 kilometres from the farm where the first outbreak was reported on 9 April.

With Japan also reporting on an FMD outbreak this week, it is the first time in over a decade that China, Korea and Japan have all reported positive cases at the same time.

Global economic recovery gathers pace for 2010 - IMF

23/04/2010

The global economic revival continues to gather pace in 2010, underpinned by surging emerging and developing economies. Many of the advanced economies continue to slowly recover, assisted by significant government spending. According to the International Monetary Fund's (IMF) World Economic Outlook, released this week, the global economy is forecast to grow at 4.2% in 2010 - a sharp turnaround from the -0.6% recorded in 2009.

Last year, emerging and developing countries exhibited continued (albeit slower) growth, at 2.4%, while advanced economies contracted on average by 3.2%. Such contrasting rates of growth are expected to be repeated over the short to medium term. Advanced economies in 2010 and 2011 are forecast to grow at 2.3% and 2.4%, respectively, while emerging and developed economies are anticipated to expand at 6.3% and 6.5%, respectively.

The higher growth rates of emerging and developed nations for the coming two years is largely due to the influence of China and India, which are forecast to increase economic output for 2010 by 10% and 8.8%, respectively. In 2011, growth rates in China are forecast at 9.9%, with India easing slightly from 2010, but remaining above the 8% mark at 8.4%.

After recording negative growth in 2009, economic conditions in both Japan and the US are forecast to improve in 2010 and 2011, returning annual growth back to the pre-crisis level of 2007. This follows severe recessions in both countries over the past year, with the Japan economy contracting at -5.2% and the US at -2.4%. The improved economic outlook for our two largest markets 2010 and 2011 should be welcome news for Australia beef exporters, who have been heavily affected by the decline in consumer demand and spending across both nations since late 2008.

With further economic growth also forecast across many of Australia's other main red meat export destinations in 2010 and 2011, consumer demand is expected to improve, albeit with returns to Australian exporters still hindered by the high A$. After outperforming most other advanced nations in 2010, Korean economic output is forecast to expand by 4.5% in 2010 and 5.1% in 2011.

Economic growth in South East Asia in 2010 is anticipated to reach 5.4%, including 6% growth in Indonesia, with further strong expansion from 2011 and beyond. For the Middle East, growth is expected to exceed 4.5% in 2010 and 2011, while the economic turnaround in Russia is expected to be rapid, going from -7.7% in 2009 to growth of 4% in 2010.

Post-Easter livestock price falls

23/04/2010

After successive short trading weeks, livestock market prices eased back this week. Cattle prices fell across all categories, as numbers lifted 8% and quality became more mixed.

Restocker and feeder demand remains strong, with most young cattle and any light cows returning to the paddock or into feedlots.

Russian buying has kicked for manufacturing grade product and cheaper cuts this month, forcing Japan and US buyers to raise quotes. With Argentine exports likely to remain under tight government controls, Russia could become a price-driver for this product over the April to September period (their traditional meat importing season) - holding up prices for cows especially, but also influencing trimming values off steers and heifers.

Lamb and sheep prices also declined this week, except for the restocker lamb category, which continues to reflect low numbers and high restocker demand. Mutton sheep values came off last week's record, though they remain 50% above a year ago.

The direction of lamb and sheep prices over the coming month depends critically on the weather. The good start to autumn will quickly dissipate if the current dry and warm conditions continue through May. This would see lamb and sheep turnoff rise and values slip. Alternatively, good rains, as the Bureau of Meteorology expects in NSW over the next three months, would see a continuation of the current high prices.

Japan's Golden Week just around the corner

22/04/2010

Unseasonably cool weather in Japan over the last two weeks has dampened the holiday momentum leading into Golden Week (series of public holidays in Japan from 29 April to 5 May). Yet, the holiday week is expected to lift consumer spending, with the Japanese wholesale market reporting relatively firm demand for chilled Australian beef, particularly shortfed items.

Reflecting the market trend, Australian beef exporters noted good to reasonable interest in chilled shortfed items from Japan. The buyers were also keen to enquire about frozen grassfed (particularly trimmings), while chilled grassfed demand slowed.

NZ cattle slaughter back in February

22/04/2010

According to Statistics New Zealand, total NZ cattle slaughter for February was back 22% year-on-year, to 192,327 head. This was largely due to producers taking advantage of good feeding conditions caused by widespread rainfall in December and January.

The decline was recorded across all categories, with the largest year-on-year fall in cows and heifers, declining 29%, to 81,854 head. Slaughter of steers and bulls was back 16%, to 110,246 head.

The ample feed supplies pushed average carcase weights up for adult cattle in February, which helped to partially offset the decline in slaughter. Beef production for the month totalled 53,325 tonnes cwt, down 17% year-on-year.

NZX Agrifax reports an increase in slaughter through March, which follows drier than average conditions through February and March.

Russian beef production growth lagging behind

21/04/2010

Russian beef production during the first quarter of 2010 increased slightly (0.7%) year-on-year to 41,600 tonnes, according to the Russian Federal Statistics Service. In contrast, pork production increased by 30% to 161,000 tonnes during the same period.

The strong increase in pork production is the result of the higher investment in the industry (supported by government funding) and the faster turnover in pork production when compared to beef.

Total Russian beef production is forecast to fall 2% to 1,260 tonnes in 2010, while pork production should increase 2% to 2,250 tonnes and poultry 11% to 1,975 tonnes, according to the United States Department of Agriculture.

Mixed outlook for Brazilian lotfeeders

21/04/2010

The Brazilian feedlot industry is facing a mixed outlook for 2010, after experiencing a decline in total marketings during 2009.

Although spot finished cattle prices have risen this year as supply remains tight, and August and October futures contracts (months in which feedlots release animals) quotes have increased 10% during the year, restocker cattle and production costs also remain high.

Last year, the Brazilian Lotfeeders Association (which accounts for around 20% of all Brazil's feedlot capacity) reported a 19% fall in numbers on feed. Total Brazilian feedlot numbers were estimated at around 2.3 million head (CNA).

Last year's decline was mainly the result of the instability in the market, the closing of a number of plants, lower finished cattle prices, lack of financing and good rainfall and pastures during the off-season (May to October) - a period where rainfall and pasture growth decreases and fattening is continued in feedlots.

Local analysts expect better credit conditions, higher exports and rising future contracts quotes will contribute to lotfeeders' margins and output numbers (AgraFNP). However, some producers forecast similar numbers as in 2009 (Beefpoint).

Seasonal conditions drive grainfed cattle numbers

21/04/2010

The number of cattle on feed in Australian feedlots totalled 711,198 head over the March quarter, 8% lower than the drought-impacted December quarter. However, numbers rose 5% year-on-year, continuing the gradual recovery in the sector, according to the latest ALFA/MLA quarterly feedlot survey.

Numbers fell sharply from December in both Queensland and NSW - back 10% to 387,872 head and 12% to 208,969 head, respectively. The rapid turnaround in seasonal conditions since the beginning of the year limited available cattle and simultaneously boosted demand, and hence prices. This was in stark contrast to the end of 2009, when increasingly widespread drought forced producers to offload stock, allowing feedlots to ramp up production cheaply.

However, an improvement was seen on the previous year, with numbers on feed rising 5% to 387,872 head in Queensland, and 6% to 208,969 head in NSW. Numbers on feed also jumped 42% in Victoria to 63,563 head - with lotfeeders able to take advantage of ample supplies of grain - and rose 7% in SA to 22,163 head. Production in WA continued to decline, with numbers 39% lower year-on-year at 28,631 head, bringing utilisation to 56% nationally.

Grainfed cattle turnoff remained high for the quarter, rising 17% on a year earlier to 660,909 head, despite the persistence of difficult export conditions - with the A$ averaging 90US¢ over the quarter. High turnoff was essentially driven by the continued strength in the domestic market with its suitability for shorter-feeding regimes, which accounted for 247,622 head over the quarter or 35% of all cattle on feed.

The immediate outlook remains clouded for the lotfeeding industry. The benefits of favourable grain prices (on the back of a likely strong harvest this year) and recovering demand in overseas markets, are likely to be offset by the high A$ and staunch competition from US product. Further, the widespread seasonal break over northern Australia will reduce the availability of, and need for cattle to be finished on grain - at least for the first half of 2010.

Taiwan imports permit US beef offal

21/04/2010

The Taiwan Ministry of Economic Affairs (MOEA) has issued the first import permit for 453 kilograms of US beef offal. In response to public concern, the health authority will conduct strict batch-by-batch inspections on US beef tongues, according to China Post, 20 April.

In a joint press conference held by the Department of Health, the MOEA and the Council of Agriculture, six types of beef offal (beef tongues, penises, testicles, tails, tendons and diaphragms) have been classified as non-internal organs, and are now accepted into Taiwan. However, high-risk circumvallate papillae (found toward the base of the tongue) are required to be removed from beef tongues before entering the market.

The United States Department of Agriculture indicated on 16 April that beef exports to Taiwan will include bone in beef, hanging tenders and the six items of beef offal from cattle younger than 30 months. The beef must also be sourced from cattle slaughtered on or after 1 April 2010.

Beef: Smoother sailing ahead

While processors have experienced a slow start to the year due to limited cattle supply, weather interruptions and subdued export demand, Stock Journal says the next nine months is shaping up more strongly for the beef industry.

Cattle slaughter across Australia for the January quarter just completed was down markedly on the same period last year, and exports for January/February fell 18 pc over the equivalent months in 2009.

The paper says that the worst hit market was shipments to the US, which were down a staggering 44 pc on corresponding 2009 figures - which makes it the slowest start to the year since 1997.

However, MLA is forecasting a significant jump in production in the current quarter to June 30, a trend it says is likely to extend to year's end due to quality and weight in cattle driven by the season, together with growing stakeholder sentiment that the demand position is likely to improve as 2010 unfolds.

Demand leads beef forward

JBS Swift (parent of Swift Australia) chief executive Wesley Batista told Stock Journal that he sees positive signs ahead for the local beef industry and while here for the opening of the company's $22 million Dinmore hide plant said he was bullish about the global outlook.

Batista says while the global red meat industry will continue to struggle with challenges in the short term, resurgent demand for beef means the outlook further ahead is much more positive.

"Beef supply around the world is at best stable, or even declining, but demand is picking up significantly in the wake of the global financial crisis, and at Swift we are very optimistic about demand," Batista says.

"Even in the US, which was hit hard by the GFC, the forecast for economic growth this year is 3.5 pc - but when we look at emerging markets such as Russia, Brazil and China, growth expectations are closer to seven and nine pc this year," he says.

Pre-vaccination proves worth

A report in Stock Journal says growing interest in price-incentive-driven pre-vaccination programs for feedlot cattle was reflected in a large attendance of about 200 producers at the recent supplier information day in Dubbo.

Major feedlot operator Swift Australia, vaccine manufacturer Pfizer and FeederGuard program manager Elders Vet Supplies made presentations during the day - which drew an audience from across NSW.

Swift feedlots general manager Michael Doyle says a growing proportion of its feeder cattle intake now carries greater protection from Bovine Respiratory Disease delivered via the FeederGuard pre-entry vaccine protocol.

The paper says that FeederGuard sales manager Adrian Whitty told participants that Bovine Respiratory Disease is responsible for between 50 and 90 pc of all sickness and deaths in feedlots, representing the industry's single largest cost.

EU grainfed door opens

The first Australian beef produced under the new EU high-quality grainfed beef quota has hit the market according to a national Rural Press report - and the feedback from European end-users has been positive.

A major export processor completed a small airfreight shipment several weeks ago to "break the ice" in the new trade, and to road-test the stringent protocols the Europeans have put in place for the trade.

The report says that the company, which has asked not to be named, has since loaded its first sea freight consignment, which has been followed straight after by a shipment from Casino based Northern Co-operative Meat Company.

Nippon expects to ship its first grainfed EU beef next month after Australia joined the US in February as the only two countries authorised to supply the EU's new 20,000-tonne global high-quality beef quota.

Meltique's value-adding lifts A-cipher beef consistency

Enhancing the eating qualities of budget-level beef cuts taken from older animals is the successful formula behind and innovative value-adding company based on the NSW central coast says The Land.

Using a Japanese-developed enhancement process, Hokubee Australia is now producing a range of keenly-priced beef items with eating characteristics which far exceed expectations, based on the origins of the raw material used.

The paper says that Hokubee Australia is headed by managing director Tom Miyamoto, who has been working in Australia for major Japanese meat companies for most of the past 30 years.

Most of the raw material carries the AusMeat A-cipher, signifying its source as being eight-tooth steers or cows, but using the Meltique process, a range of steak cuts are produced - striploin, cube roll and tenderloin steaks - and commonly used in Asian barbecue and yakiniku applications.

Australian beef producers give Indonesia a helping hand

Northern Australian cattle producers and exporters will commit 2500 breeders to an Indonesian government project designed to restore greater self sufficiency in the country's beef requirements says Queensland Country Life.

A memorandum of understanding was signed by representatives of Indonesia's cattle breeding association and Australian live exporters and producers during meetings held in conjunction with the NT Cattlemen's Association GM in Darwin.

Indonesian Agriculture minister Suswono attended the meetings, with three of the country's provincial governors, to talk to Federal Agriculture minister Tony Burke about further investment opportunities in the Indonesian industry.

Over past decade Australia's live trade with Indonesia has been heavily focused on feeder cattle but the paper says there was a significant trade in breeders during Indonesia's Transmigration Project era in the 1980s.

China's appetite for safe beef grows

According to a report in the Queensland Country Life, China is poised to become a net beef importer - and the Australian beef cattle industry is likely to be one of the major beneficiaries.

That has been the message from Chenjun Pan, Rabobank's Beijing based senior industry analyst, a message delivered to delegates at the recent NT Cattlemen's conference in Darwin.

Pan says while China's appetite for beef is growing, the Chinese consumer is also in the process of changing, and she says animal welfare and the environment are becoming important factors for these new Chinese consumers.

She says there is potential that meat consumption in China will balloon from its current 72 million tonnes to 91 million tonnes in less than 10 years - and much of this growth will be in safe meat.

Top cattle for Roma show

All stud beef cattle roads in Queensland will lead to Roma next month according to a report in the Queensland Country Life, with stud exhibitors from far and wide expected to converge on the Roma Show for the annual stud cattle championships on May 7 and 8.

The Roma stud cattle committee has revamped and improved its judging format in recent years, with the successful introduction of classes and championship judging on an interbreed basis at the well-appointed Bassett Park.

The paper says that all led cattle are grouped and judged in Tropical, British, European and Miniature age classes with calf, junior and senior champions advancing through to an interbreed competition for each age group before the overall champion bull and female and supreme exhibits are judged.

This year's show will also feature an expanded led steer competition with the judging of it, and all championship interbreed classes, to take place under lights on the Friday night after all age classes are judged during the day, starting at 8 am.

Genomics, marketing hot forum topics

Topical issues surrounding the use of genomics as a beef selection tool, and the impact marketing can have on brand success will feature at the Angus Australia national conference in Albury on April 27 says The Land.

In an information-packed program, carrying a strong beef business focus, organisers have put together a panel of high-profile Australian and international speakers who are well-credentialled to cover the subject matter.

Using DNA profiles to describe the profit-generating traits in beef cattle is a hot topic in the seedstock industry and two key aspects are whether results are reliable enough to use in breeding and management decisions, and whether the test will replace EBVs as the industry's main genetic tool.

The paper says the world's largest beef breed organisation, the American Angus Association, has taken the plunge and is now producing genomic-enhanced expected progeny differences (GE-EPDs) using information from a high-density whole-genome scan applied to 50,000 markers.

Entries looking good for carcase classic

The Gympie Carcase Classic - which is one of Australia's longest running and best known carcase performance competitions - closed for entries on April 16 according to Queensland Country Life.

Entries are expected to be 7up this year following the welcome turnaround in seasonal conditions, with steers and heifers traditionally being drawn from across a wide area of southern and central Queensland and northern NSW.

Milktooth entries will be inducted and valued at the Gympie Showgrounds on May 4 before intake at the Gowanlock feedlot near Tansey, which will again host the feeding stage of the 2010 competition.

A mid-term field will be held by the Gympie District Beef Liaison committee at the feedlot on Friday July 23, including a live animal assessment competition before processing takes place at Nolan Meats on July 26.

Elders moves on feedlots

Elders is looking to expand again after last year's drastic internal financial shake-up and has already made its first move with a renewed push into the reviving feedlot sector says The Land.

The diverse farm services company has just assumed full ownership of the Killara feedlot near Quirindi, after acquiring a 46.75 pc stake which was previously held by the Taiwan Sugar Corporation.

The paper says that Elders, which also owns the 20,000 head Charlton feedlot in north western Victoria, already held the other 53.25 pc in the 20,000-head Liverpool Plains feedlot.

This latest move positions the company as Australia's fourth-largest feedlot operator and managing director Malcolm Jackman says the purchase highlights that Elders "is back on the front foot" after last year's recapitalisation.

Meat plant to reopen

The Burragong Meats plant in southern NSW should soon be ready to operate once more after its sale, which is expected to be finalised later this month, according to a report in The Land.

The receiver of the bankrupted abattoir, PBB Australia, appointed to recover bank debts owed by the business, has confirmed that a buyer for the meat processing plant at Young has been chosen.

And while the sale is still to be finalised, the paper says that the latest developments should prove to be good news for the 300 staff made redundant and yet to find employment as well as local livestock producers.

A Sydney-based PBB manager, Ben Craw, says it is likely the plant will not be run at full production capacity immediately after the purchase goes through, but will be phased in. Burragong Meats owes an estimated $15 million to creditors and the money to be raised by the sale is yet to be made public.

Brazil's bounding ahead

According to a national Rural Press report, beef exports from Brazil are expected to grow by 20 pc this year the country's agriculture minister Reinhold Stephane has told the world press during a recent forum.

This comes on the back of strong growth across all of Brazil's agricultural industries, with Stephane saying this area of the South American powerhouse has shown  stronger than average growth for the past 20 years.

He says across this timeframe it has averaged 4.5 pc growth annually and says that 75 pc of that success has been based on increases in efficiency and productivity, not increases in hectares farmed.

And he forecasts further growth in the future which, importantly, he says can be achieved without any tree-felling in the Amazon biome and that efficiency increases will have a big impact simply because of the size of the productive area.

MLA UPDATE

Imported beef trading at a premium

16/04/2010

US imported beef prices were very firm this week, as stocks of imported beef continue to remain well below the same period last year. On the contrary, US cow slaughter is currently 2% above year ago levels, a contributor to US domestic fresh 90CL prices currently trading at a 4¢ discount to imported frozen 90CL product.

Lower US beef supplies have resulted from the rising calf and beef prices as US beef producers retain cows and expand herd operations. Imported beef supplies will also continue to be under pressure, given increased demand from Russia for Australian product, and reduced shipments from Uruguay and New Zealand.

US end-users are still refraining from the markets in expectation of lower prices, but they may be forced to continue waiting as the possible continuation of tightening supplies looks to push prices to historically high levels.

Rain hangs on across the north

16/04/2010

The past week has seen further rain across northern Australia, with some good late wet season falls through the Kimberley and Top End, along with falls throughout southern NT and Queensland. After a patchy wet season, parts of the Kimberley recorded in excess of 50mm, including 80mm at Fitzroy Crossing. In the south, falls were very patchy through WA, Victoria, Tasmania, while central SA recorded over 50mm.

Imported beef trading at a premium

16/04/2010

US imported beef prices were very firm this week, as stocks remained well below the same period last year. On the contrary, US cow slaughter is currently 2% above year ago levels, a contributor to US domestic fresh 90CL prices currently trading at a 4¢ discount to imported frozen 90CL product.

Lower US beef supplies have resulted from rising calf and beef prices as US beef producers retain cows and expand herd operations. Imported beef supplies will also continue to be under pressure, given increased demand from Russia for Australian product, and reduced shipments from Uruguay and New Zealand.

US end-users are still refraining from markets in expectation of lower prices, but they may be forced to enter as the possible continuation of tightening supplies could push prices to historically high levels.

Cattle markets firm, despite A$

16/04/2010

Cattle prices have ignored the A$ move above 93US¢, to remain firm to dearer after the first full trading week this month.

Export prices are being buoyed by the coincidence of a lift in US and Russian demand for trimmings. The subsequent rise in prices has forced Japanese buyers to follow suit. Korean prices were also reportedly firm to dearer.

Numbers and stock condition post-Easter will be a major determinant of cattle price trends in the near term. A solid seasonal surge in finished cattle supplies and cull cows through late April/May would likely see price falls, before the normal winter rise commences.

While there was little change in young cattle saleyard prices this week, the national Japan ox indicator lifted a further 6¢/kg cwt, to be 10% higher than the same time last year, and US cows lifted in Queensland, NSW and WA.

In a clear indication of flock rebuilding activity, and strong Middle East demand for live sheep and mutton, the national average mutton sheep price continues to post a record on a weekly basis. This week, the indicator hit 374¢/kg cwt, up a further 11¢ on last week's record and 64% higher than last year.

Lamb prices were largely unchanged this week, though the Merino lamb indicator suffered a correction.

March quarter butcher sales higher

16/04/2010

Butcher sales were reportedly steady (for lamb) to higher (for beef, pork and chicken) in the March quarter compared with the unusually low sales during the same period last year. According to the latest MLA's butcher survey carried out by Millward Brown's National Field Services, beef, lamb and pork prices increased while chicken prices eased.

Of the 325 butchers surveyed during January to March, 48% noted ‘very good to excellent' beef sales, up from 43% in the March quarter 2009. Lamb sales were steady during the period, with 37% of respondents indicating ‘very good to excellent' trade compared with 36% a year ago.

Pork sales rose in the March quarter, as 32% of butchers reported ‘very good to excellent' selling compared with 20% a year earlier. About 44% of respondents noted ‘very good to excellent' sales of chicken during January to March, a rise from 33% during the same period in 2009.

Foot-and-mouth disease not stopping Korean beef demand

16/04/2010

Australia exported 3,728 tonnes swt of beef to Korea from 1-12 April this year, indicating a solid start for this month's volumes.

One week before the foot-and-mouth disease outbreak in Ganghwa, Korean prices for cattle and pig carcasses dropped slightly, but picked up since then, despite the infectious disease.

The Korean media has reported that it is unlikely that the FMD in Korea will significantly impact consumer beef demand in retail or foodservice.

The retail industry is closely watching the developments of the outbreak as experts have predicted the disease will likely spread further. Major large discount stores are closely tracking the livestock availability of their distributors and have indicated that they may even start securing stock (Yonhap).

In addition to strong domestic prices, the overall value of imported beef remains firm, while short rib prices increased from all overseas suppliers.

Due to recent low stocks, traders are worried there will not be sufficient rib supply to satisfy demand.

Japanese buyers look out for trimmings

16/04/2010

Japanese buyers remained observant of the Australian beef export market this week, as many had already secured enough product for Golden Week (series of public holidays from 29 April to 5 May), but some were still looking for more, particularly trimmings. Export prices for Japan increased, largely due to the higher A$, but also because of competition from other markets.

In Japan, a trade source (Shokuniku Sokuho) commented this week that it was unlikely there would be changes to the current import protocol on US beef this year (currently all beef must be sourced from cattle under 21 months of age), as Japan will need to follow a number of procedural steps, including a review by Japan's Food Safety Commission.

Friday daily livestock article

16/04/2010

At Roma numbers were down and competition was strong. Heavyweight yearling steers were 6¢ stronger averaging 180¢ while the heifer portion was 9¢ dearer at 165¢/kg. Heavyweight grown steers gained 3¢ to 176¢ and heavy D4 cows mostly sold around 142¢ a rise of 2¢/kg.

At Dubbo the yarding was three times larger after a rain affected market last week. Vealer steers slipped 3¢ while heifers fell 6¢/kg. Heavyweight yearling steers were dearer, those to feed averaged 184¢, to restock 191¢ and to slaughter 185¢/kg. Heavyweight grown steers were firm at 179¢, whilst the heavyweight cows were dearer selling from 135¢ to 144¢/kg.

At Bairnsdale there was a large increase in supply and quality was mostly good. Heavyweight yearling steers were 5¢ to 6¢ cheaper selling around 176¢/kg. The heifer portion was also cheaper averaging 164¢/kg. Medium weight D2 cows averaged 136¢ with heavy D3 pens slightly cheaper at 147¢/kg.

At the close of Thursday's markets the Eastern Young Cattle Indicator (EYCI) was 1.25¢ cheaper settling at 349.75¢/kg cwt. Trade steer slipped 3¢ to 186¢ and feeder steers were firm at 181¢/kg. Japan ox rose 3¢ to 175¢ and US cow finished at 132¢ to be 2¢/kg stronger than last week.

Numbers surged at Wagga and quality remained good across the yarding. Medium weight trade lambs to feeders topped at $113, as most pens sold at $107/head. Heavy trade lambs to slaughter eased 6¢, as sales ranged from 459¢ to 514¢/kg cwt. The heaviest lambs peaked at $172/head, as most pens settled at 474¢/kg cwt. Solid numbers of medium weight Merino ewes held firm at 418¢/kg cwt.

After Thursday's markets eastern states restocker lambs settled at 514¢, to be 15¢/kg cwt dearer. Merino lambs slipped 14¢ - to 426¢, and light lamb was unchanged at 444¢/kg cwt. Trade lamb lifted 2¢ - to 486¢ and heavy lamb was 1¢ cheaper at 466¢/kg cwt. Mutton lifted 5¢ to settle at 381¢/kg cwt.

Strong February for live cattle

13/04/2010

February was another strong month for Australia's live cattle exports, as shipments to Indonesia and the Middle East continued to underpin the trade. Exports for the month totalled 78,198 head, an increase of 60% on the same period last year, with exports to Indonesia up 28%, at 44,003 head.

One of the main features for exports during the first two months of 2010 has been an increase in exports to the Middle East, including 17,828 head to Qatar, 9,739 head to Libya and 9,143 head to Jordan. In 2009, Australia shipped 96,750 head of cattle to the Middle, with 38,475 head already shipped for the first two months of 2010.

US to recognise FMD free Brazilian state

13/04/2010

The US has agreed to publish a proposed rule by 16 April to recognise the southern Brazilian state of Santa Catarina as free of foot and mouth disease (FMD) without vaccination, and other diseases (Unites States Department of Agriculture). However, the possible re-entry of fresh and frozen Brazilian beef to the US hinges on the outcome of an expedited US risk assessment and success in identifying a risk mitigation system to enable unprocessed beef from that state to enter the US without the risk of FMD outbreaks.

The US currently only imports beef from FMD free countries, not from recognised FMD free regions.

According to the Brazilian Beef Exporters Association, the recognition will not have an impact in exports as Santa Catarina beef production is limited, but it is an opportunity to open negotiations of Brazilian unprocessed product access in the US and other markets (AgraFNP).

The agreement comes as a result of the negotiations between the US and Brazil to avoid Brazilian retaliation due to a US cotton producers subsidy litigation at the World Trade Organization.

The US offer also includes funding for US$147 million/year to increase Brazilian cotton producers' competitiveness and limiting US producer subsidies.

Bullish meat market in the US expected

13/04/2010

US beef production in 2010 is still expected to decline 1%, despite the USDA recently revising forecasts up from 11.68 million tonnes cwt to 11.72 million tonnes cwt, due to fed cattle marketings rising 2% in the first two months of this year (USDA World Agricultural Supply and Demand Estimates). Monthly US beef production so far this year (to February) has declined 2% on the same period last year, attributed largely to a decline in cattle carcase weights.

Pork production forecasts have also been revised, but down from 10.18 million tonnes cwt to 10.14 million tonnes cwt - a decline of 3% on 2009. A smaller 1 March inventory and slowed growth in the number of pigs per litter has contributed to the lower production volumes.

Amid tighter cattle and hog supplies, US livestock prices are expected to increase sharply into the US summer quarter this year. US Choice steer prices are forecast in 2010 to average approximately 10% higher on last year, with prices for the second and third quarter of this year to increase 10% and 11%, respectively.

Hog prices for 2010 are expected to average approximately 25% above year ago levels, amid lower production and increased exports. Broiler prices are also projected to increase approximately 6%, despite production and export forecast declines of 2% and 15%, respectively.

Beef supplies down in NZ

13/04/2010

New Zealand (NZ) exports of beef and veal fell 4% year-on-year in March to 39,729 tonnes swt, despite reportedly strong demand, as supply side factors dominated (NZ Meat Board).

Demand for NZ product has been increasingly buoyant in 2010, with rainfall induced production shortages out of Australia - where March exports fell 8% to 81,521 tonnes swt - forcing importers to look elsewhere (DAFF). However, increased shipments have been hampered by tight supplies of cattle domestically - forcing production back 17% year-on-year in February to 53,324 tonnes cwt (Statistics NZ).

Lower production in NZ has been due to low beef breeding cow numbers as well as an element of herd rebuilding on the back of an improved season. However, the largest contributor has been a reduction in the number of cull cows coming forward after last year's high, with cow slaughter back 42% in February to 43,278 head (Meat & Wool New Zealand).

For the 2009-10 season, Meat and Wool New Zealand have forecast a 6.2% fall in slaughter to 2.19 million head, and a 4% fall in production to 566,657 tonnes cwt.

March exports of NZ beef and veal fell 8% to the US (78,240 tonnes), 12% to Taiwan (1,964 tonnes) and 44% to Canada (2,271 tonnes). However, shipments increased 15% to Korea (3,620 tonnes) and 41% to Japan, where the success of a new promotion reportedly had McDonalds scrambling to meet demand (NZAgrifax).

Beef volume to Middle East increases in March

13/04/2010

Beef exports from Australia to the Middle East rose 27% in March to 1,206 tonnes swt compared with the same month last year.

Accounting for the majority of the rise were Saudi Arabia growing from 85 tonnes to 294 tonnes; Jordan from 3 tonnes to 150 tonnes and Egypt from zero to 94 tonnes.

Markets to fall in volume included the UAE, dropping from 536 tonnes to 392 tonnes and Lebanon from 127 tonnes to 35 tonnes.

Rises in the price-sensitive Saudi Arabia were registered for topsides, up 169 tonnes, manufacturing up 100 tonnes and carcases rising 25 tonnes due partly to Australia taking advantage of its prices being almost at parity with comparable Brazilian product.

Jordan saw a 97 tonnes increase in topsides, a 25 tonne increase in manufacturing product and a 23 tonnes rise in thick flank, while Egypt's increase was predominantly due to blade up 18 tonnes, chuck increasing by 13 tonnes and carcases by 11 tonnes.

Rain hits February beef production

13/04/2010

Australian beef and veal production for February fell 8% year-on-year, to 300,941 tonnes cwt (Australian Bureau of Statistics). The widespread rain throughout January and February, largely focussed on Queensland, had producers withholding cattle from markets, accentuated by logistical difficulties due to flooding, which reduced the available supply of cattle to processors.

February beef and veal production declined 16% year-on-year in Queensland (67,125 tonnes cwt), 2% in NSW (39,184 tonnes cwt) and 8% in Victoria (32,812 tonnes cwt), as all states received much needed rain. In contrast, volumes increased 2% and 38% in WA (9,683 tonnes cwt) and SA (9,491 tonnes cwt) respectively.

With total adult cattle slaughter for the month back 9% year-on-year, to 590,000 head, female numbers contracted 11% - largely due to the influence of the rain and increased demand for breeders from restockers. While adult male turnoff declined 7% year-on-year, male slaughter levels in Queensland declined 17%, which was a combination of producers withholding cattle from sale to capitalise on the rapid turnaround in seasonal conditions and limitations on transporting cattle due to flooding.

After the first two months of 2010, Australia's total beef and veal production is back 8% on the previous year, at its lowest level since 2002, at just over 300,000 tonnes cwt. The lower production has had an impact on exports, with shipments for the first quarter of 2010 back 14%, to 188,368 tonnes swt.

Australian beef and veal production is forecast to fall 4% in 2010 to 2.045 million tonnes cwt, with exports forecast to be back 6% to 875,000 tonnes swt (MLA's Industry Projections).

Korea on high alert after new FMD cases

12/04/2010

Sixteen days after the Korean government declared the country ‘clear of foot and mouth disease (FMD)', the Korean Ministry of Food, Agriculture, Forestry and Fisheries reported on another outbreak on Thursday April 9 (Yonhap).

A total of 5 farms in Gangwha-gun, approximately 40 kilometres from Korea's capital city Seoul, were found infected with the highly contagious FMD. The government has now started culling almost 30,000 animals in the region. A Gangwha spokesperson reported that animals on 227 farms within 3 kilometres of contaminated farms would be killed (AFP).

Due to the rapid spread of the disease from one to five farms in a few days, the Korean government raised their alert level from "cautious" to "warning". This is the first time that the government has issued a warning alert for the disease (AFP).

Brazilian beef exports up in March

12/04/2010

Brazilian beef exports during March increased 8% on the previous month, to 80,190 tonnes swt, but remained 2% below the same period last year.

Russia maintained its position as Brazil's largest beef export market in March, despite shipments declining 11% on February, to 21,491 tonnes swt, as importers delayed purchases early in the month until the Russian government released further import quotas. Brazil also sent a record 17,467 tonnes swt of beef to Iran in March, up 30% on February and 421% year-on-year as demand jumped significantly.

During the fiscal year to March (July 2009 - March 2010), total Brazilian beef exports were down 2% to 692,830 tonnes swt, with a 9% decrease in shipments to Russia (229,572 tonnes swt). However, in contrast to the overall decline, exports increased 56% to Iran (105,713 tonnes swt), 36% to Hong Kong (77,356 tonnes swt) and 100% to the EU (37,070 tonnes swt) as the EU gradually accepted more Brazilian farms for export.

Brazilian packers have had difficulties in maintaining production during the year, as rain has provided good pasture conditions with producers holding on to cattle. While plants in Sao Paulo now source animals across neighbouring states, higher prices have been passed on to consumers in the domestic market, with some analysts now suggesting that this consumer price absorption may have reached a limit (Beefpoint).

Rain stretches weaner supply

Rain fuelled strong demand for young cattle ahead of the weaner sales but The Land says it could also keep a lid on yardings as a good amount of feed is likely to convince some producers of the advantages of retaining stock they would normally be selling off.

The paper reports that more than 17,000 weaners had been set to go under the hammer starting last week, with a further 7000 head already having been sold at earlier sales.

Landmark national commercial sales manager Mark Barton says numbers could be down as much as 20 pc, especially in the south, because of lower cow numbers due to the drought, but in contrast the better season has allowed some to retain stock.

Just back from the Victorian sales, where the calves are older than those traditionally offered in NSW, Elders Tamworth based NSW key account manager Andrew Talbot says he bought about 1300 head, averaging 335 kilograms ``for a $670 average.

Big Wagga sale buoys farm auction flood

The jittery rural property market has received a timely fillip according to a report in The Land, with news North Tahara, the major Wagga Wagga grazing property of the Four Arrows Group, has at last been sold.

Wellship Pty Ltd, a company which is associated with the Melbourne stockbroker Malcolm Shippen, has been named as the purchaser of the 4828-hectare cattle property, which was sold for an undisclosed price.

The paper reports that North Tahara has been on the market - in various configurations - for the past four years, most recently as a five-part aggregation listed for tender sales.

Elsewhere in the market, a pent-up avalanche of properties hitting auction rooms this autumn in the wake of drought-break (or in some places drought-easing) rains is putting pressure on prices.

Pregnancy rates dropping

According to a report in The Land, the State's dry spring is coming back to haunt commercial beef cattle producers, with veterinary tests revealing conception rates of 50 pc - and lower.

The paper says that many stock and station agents have been noting an increasing number of cows being sold empty in recent weeks and they suggest cow numbers might increase even further.

The scenario is believed to be similar in both the north and the south of the State - conception is proving to be a real problem in any area where herds did it tough as a result of seasonal pressure.

Industry and Investment NSW Forbes based beef cattle officer Jeff House says the spring simply did not last long enough for some people and he has heard numbers floated around of joinings going as low as 25 pc.

A display/sale solution

Setting a stud display day to coincide with a store cattle sale at the Central Tablelands Livestock Exchange may well be on the agenda for next year for members of the Central West Beef Week says The Land.

The annual event held a display day open to all members during a store sale at the complex last year but proposed 2010 dates clashed with statewide events so a display was only held on the third day of Beef Week in March.

CWBW chairman David Hobbs says there are members who believe stud displays on the perimeter of the CTLX complex during a store cattle would be a positive opportunity for seedstock producers and customers.

Hobbs says the cattle sale could attract stock from member commercial herds as well as client herds, making the day a success for members, clients, and potential clients visiting and viewing a wide cross-section of what member studs have to offer.

Meat supremos

The increasing concentration in ownership of Australia's major livestock processing assets is prompting concerns from within the sector about a lack of buying competition says Stock and Land.

Swift Australia last month announced it had purchased the Rockdale Beef Feedlot and export processing business at Yanco in southern NSW subject to Australian Competition and Consumer Commission (ACCC) approval.

Further speculation of another significant acquisition by the Brazilian-owned Swift - this time of Victorian operator Castricum Brothers - has been rubbished by Castricum management.

Having watched closely the recent Swift acquisition of Tatiara Meat Company, VFF livestock president Chris Nixon says the peak farming body is maintaining its focus to see how the latest round of Swift shopping translates for producers. Most of the livestock agents contacted by the paper also expressed concern about the reduction in overall competition.

How much is the Angus brand worth?

Keeping the juggernaut Angus brand on its current roll - and maintaining its prestigious position - will be the major topics at the Angus Australia national conference in Albury on April 27 says Stock and Land.

The word Angus signifies high quality in beef consuming populations worldwide and its use has spread from the high-quality primal grilling cuts to the ground beef used recently by major fast-food chains.

The Angus brand has also witnessed significant expansion of Angus genetics in the Australian beef herd, where 50 pc of British and European breed bulls sold at auction are Angus.

Keynote speaker Andrew McPherson, Business Unit leader of Cargill Beef Australia, which has an annual turnover of $600 million, will explain where the beef industry is heading with high-quality branded product and Mike Murray, managing director of Prestige Foods International, will address the future of challenging global markets.

Traditional roast gets a makeover

The image of the traditional Sunday roast - the staid and stodgy roast - is about to get cooked in a whole new light and sold with some extra sizzle according to a report in the Queensland Country Life.

The all-new makeover, or should that be bake-over, is coming via a new promotional campaign from Meat and Livestock Australia (MLA), which aims to get beef roasts back on the Australian dinner table this autumn.

The paper says that this is the first prong in the marketing strategy, which will be targeting how to better educate customers on choosing which cut to use, and how they can cook one to perfection.

Turning on the oven might be a good start but MLA general manager of marketing, David Thomason, says it is going to take a lot more than that to reignite consumer desire for beef roasts as research shows only four pc of consumers cook them regularly as many are unsure what to buy and how to cook them.

Swift moves on hides

Swift Australia's latest investment in productivity improvement in its Australian operations has been unveiled with the official opening of a hi-tech hide processing facility at Dinmore says Queensland Country Life.

Easily the largest factory of its type in the nation, the $22 million plant takes the total investment in new infrastructure within Swift's Australian business to $400 million since it took over AMH two years ago.

Swift chief executive Wesley Batista says that his company remains committed to its investment in processing in Australia, and is now continuing to look at further growing its investment portfolio.

MLA chairman Don Heatley saluted Swift for having the "guts" to commit large amounts of capital to the value-adding project during a difficult time in the processing sector's history.

Animal rights grab NT spotlight

Queensland Country Life says animal welfare issues and the work being done to address them by the Australian beef industry on a global front was a key focus at the recent NT Cattlemen's Association annual conference.

A record of 440 conference delegates heard lively presentations and debate on broad-ranging industry issues such as global meat consumer trends, the emerging economies of China and India, food safety and the beef sector's state of play.

The most hotly anticipated speaker of the event was Heather Neil, chief executive of the RSPCA - Australia's peak animal welfare group which officially supports a ban on live-export shipments of cattle for slaughter.

The paper says that Neil stressed the RSPCA is not opposed to the business of farming, or people's need, or desire, to eat meat, and embraced joint efforts with industry bodies to improve conditions for farm animals through the supply chain.

Beef labelling on the money

Global food marketing guru Professor David Hughes has his finger on the pulse when it comes to consumer perceptions and trends - and Queensland Country Life reports he says Australia has the world's most consumer-friendly meat-labelling system.

Queried about the proposed Torbay beef labelling system, Professor Hughes stressed he did not know the background to the move, but regardless, he cannot understand why consumers would want to see changes to what they already have.

Hughes told the paper that Australia already has the world's single, most sophisticated consumer-oriented beef-labelling classification system with its emphasis on taste and tenderness.

"I just wonder why you would want to complicate things by changing labelling which will only serve to confuse the consumer," he says. "They know the quality of what they are buying by the difference in price and type, and if they want the cheapest product they will pay less. No-one is going to pull the wool over their eyes."

Beef future brighter says NAB

Widespread autumn rain across eastern Australia is providing a strong outlook for the cattle industry, with National Australia Bank Agribusiness forecasting demand and prices to increase in 2011 says Queensland Country Life.

The latest assessment has beef and live cattle exports as the "commodity in focus" along with an overview of key commodity prices and macroeconomic drivers such as interest and exchange rates.

NAB's NT and North Queensland regional agribusiness manager Geoff Howard says in the short term, at least, producers will be rebuilding herd numbers and taking advantage of the increased pasture availability.

Howard says beef production is forecast to fall by three pc in 2010-11 to two million tonnes, as weak export demand adds to the incentive for producers to hang onto and rebuild their herds and access higher saleyard prices as economic conditions improve.

MLA UPDATE

Storm season continues

9/04/2010

Patchy rain continued over southern Australia this week, with a number of different low-pressure systems bringing further timely falls to winter grain growers across southern WA, central NSW, most of Victoria and Tasmania. Far-north Queensland received another drenching courtesy of an off-shore monsoonal trough. Further showers are expected across much of the south-eastern states in coming days, as weather events move east across Australia.

Japan and US ready to resume beef talks

9/04/2010

The US Agriculture Secretary Tom Vilsack had a meeting with Japan's Agriculture Minister Hirotaka Akamatsu on Thursday this week. The two countries agreed to resume dialogue over the current beef import protocols (all US beef must be sourced from cattle under 21 months of age), according to Kyodo news.

Akamatsu was quoted by the Japanese media (Shokuniku Sokuho) prior to the meeting as stating that he was ready to negotiate import conditions with the US, but also re-affirming that food safety based on Japan's scientific assessment will remain as the upmost priority.

In the Australian beef export market, Japanese buyers demonstrated reasonable interest in frozen items, particularly for trimmings and shoulder cuts. Demand for chilled beef slowed, subsequently softening export prices to Japan in both US$ and A$ terms.

Leaping US beef prices

9/04/2010

The US imported beef market advanced strongly this week, amid a further tightening in supplies. The strong start to the year in imported beef prices and ongoing US$, credit and demand concerns, has seen US end users and importers limit forward meat orders - hence, pipeline supplies are now very low. This is now a very bullish factor for the imported beef market moving forward, as the Memorial Day holiday weekend and summer ‘grilling' season is only a little over a month away.

While prices across all imported categories have lifted this week, the imported chilled inside cap off indicator is worth particular mention, as prices have jumped 35¢ on last week, to 232.5US¢/lb CIF.

The imported 90CL indicator moved 8¢ higher on last week, to 170US¢/lb CIF, whereby in A$ terms it jumped 14.5¢, to 374.1A¢/kg FAS - up 36% since its low in October.

Cattle and Merino lambs stronger

9/04/2010

Saleyard cattle price averages rose across most categories this week, following further useful rains across the southeast and some promising signs in export markets. The EYCI was at 351¢/kg cwt on Thursday, a little strong than pre-Easter levels.

The export categories also rose, as further signs emerge of a short supply of meat on the US market. The US choice cattle price has lifted 15% since late last year and the cull cow price by 23%, as fears grow over beef and pork supply later this year. Falling cow and sow numbers, a harsh winter and increasing beef and pork exports, promise to tighten supplies on the US market and lift meat prices significantly this year. This should assist demand for Australian beef, both in the US and in Japan and Korea (where the US is our main competitor).

NSW lamb markets lifted appreciably this week, led by Merino and light categories. This reflected further useful inland rains, which served to reinforce the promise of good autumn/winter feed and water supplies. In contrast, prices declined in Victorian and SA markets, leaving prices for the lighter categories well below those in NSW.

The national average mutton sheep indicator rose to a record 363¢/kg cwt this week (up 66% on last year), following a further 19% fall in yardings (down 45% on last year) and stronger restocker demand.

Low short rib supply impacts Korean wholesale market

9/04/2010

Australian beef exporters reported on steady demand from Korea after the Easter break, with historically a quieter period ahead. Korean traders in the wholesale market continue to report on beef shortages, though Australia's volumes to Korea have been on the rise.

Australian beef exports to Korea during March totalled 11,137 tonnes swt, up 49% on February this year and a 10% lift on the same month last year. Similarly, beef exports to Korea from January to March this year increased 8% compared with the same period last year.

While Australia's exports have been strong, the Korean market seems to have insufficient stocks of Australian short ribs, with the price for this item rising since the start of this year. Short rib supply from Australia to the Korean market dropped 12% in the March quarter compared with the same period last year.

One of the cuts responsible for boosting Australia's supply to Korea calendar year-to-date has been blade, which has increased 33% on last year, from 3,388 tonnes swt to 4,507 tonnes swt. Manufacturing, brisket, thick flank, thin flank and neck have also lifted in the last three months on last year's volumes.

Beef exports to Japan surge in March

9/04/2010

Beef exports to Japan picked up substantially in March, up 28% year-on-year to 39,283 tonnes swt (Department of Agriculture, Fisheries and Forestry). The increase in March brought the first quarter of 2010 shipment volumes on par with the same time last year, at 83,760 tonnes (2% above the 2009 quarter, but 7% below the five-year average).

The volume surge in March was largely due to an increase in frozen beef shipments, up 50% to 22,068 tonnes compared with the previous year. Improved beef supply during the month assisted Japanese buyers to replenish depleted stocks in the market, and to secure product for the upcoming Golden Week holiday season (29 April to 5 May). Chilled beef volumes also lifted 7% year-on-year to 17,215 tonnes.

Cattle market wrap

9/04/2010

March cattle slaughter numbers increase

A wet start to March restricted the movement of cattle in many areas of Queensland, nevertheless national cattle slaughter rose 6% compared with the previous month but was 10% below March 2009 numbers. The number of calves processed followed a similar trend, with slaughter up 30% on February but 17% lower than the same period last year.

The significant increase month-on-month was largely attributed to the rise in the number of cattle coming out of Queensland, as the central and western districts dried out. Heavy rain and flooding early in the month resulted in Queensland slaughter falling 13% compared with 2009, as a number of processors had contracted cattle in the paddock, but were unable to take delivery due to transport restrictions.

The number of calves and cattle slaughtered in NSW rose slightly month-on-month, but remained 4% lower than last year as pasture growth allowed producers to hold onto cattle for longer. Improved seasonal conditions and an increased presence of northern processors meant slaughter was 9% and 3% lower than February in Victoria and SA, respectively.

Direct to slaughter prices fluctuated and were mostly influenced by supply throughout March. Supply constraints at the beginning of the month caused NSW processors to raise rates and hampered operations in Queensland, with many plants operating at reduced kills. By the end of the March, eastern processors were able to ease rates, with increased numbers coming forward.

Grown steers scarce

Grown steers suitable for slaughter remain limited, particularly in the north, according to MLA's NLRS reported physical markets.

Although the season has improved recently, several years of tough conditions made it difficult for producers to hang onto young cattle over the past few years. Heavy steers that would be coming onto the market now were sold as vealers or yearlings because suitable feed was limited. If the good seasonal conditions continue, the steers purchased by restockers at recent sales may return to the market in good quality towards the end of the year.

Easter boosts cattle prices

The shortened week due to Easter has resulted in an increase in most of the eastern states cattle indicators.

Two short weeks in a row has meant that a number of physical markets were cancelled last week and yardings have been well down on normal levels this week because of difficulties transporting cattle due to the public holiday on Monday. This has been coupled with some decent falls of rain in NSW and Victoria maintaining the good start to autumn. The falls in supply have resulted in strong competition, as processors, feeders and restockers compete to secure adequate numbers.

At the finish of Thursday's markets the Eastern Young Cattle Indicator was 351¢, a gain of 4.5¢/kg cwt on the pre-Easter average. The eastern trade steer indicator finished at 189¢, a gain of 3¢ on last week, while Japan ox was 2¢ stronger at 173¢/kg lwt. US cows settled at 131¢, to be 4¢/kg lwt dearer than before the Easter break.

Hide recovery continues

9/04/2010

Hide prices have continued to recover from the rock bottom levels reported this time last year, and are currently sitting at the highest levels since late 2008.

Green hide prices are now up to five times higher than the same time last year, reflecting the severity of the fall of 2009, however, prices still remain well below historical levels. Furthermore, there is some reluctance from overseas tanners to move rates to higher levels due to leather prices failing to increase at the same rate as green hide prices.

The recent Hong Kong leather fair provided some positive signs that the recent increases can be maintained, but further rises will hinge firmly on the increased demand in the global leather market. The recent rise in the A$ against major currencies has also halted further price rises.

The dramatic price slump during October and November last year saw green hide prices drop to between a third and a quarter of their previous value over a six month period between mid-September 2008 and mid-March 2009. Prices still have a long way to go to return to pre-2008 levels, with current green hide values still less than half of the value of peak levels in May 2007. During this time period, the A$ was between US81¢ and US84¢ compared with US92¢ at present.

Beef exports watered down in March

8/04/2010

Australian shipments of beef and veal reached 81,521 tonnes swt in March, 8% below the previous year (DAFF). The transportation and processing of cattle has been held back to date by widespread rainfall and flooding - particularly across northern Australia - and this has contributed to much lower supplies of beef and veal nationally.

Exports declined 48% year-on-year to 16,421 tonnes swt in the US, a combination of limited supply, the high A$, cheaper domestic CL product and a desire among traders to keep inventories low. Shipments also fell 17% to Indonesia (3,364 tonnes swt) and 22% to Taiwan (2,295 tonnes swt). However, exports lifted 10% to Korea (11,173 tonnes) with consumer spending continuing to recover, and 28% to Japan (39,283 tonnes), with importers buying strongly ahead of the Golden week holiday.

Cattle supplies are expected to improve in coming months, with the official end of the rainy season in March. Despite this, Australian beef exports are forecast to be 6% lower in 2010 year-on-year, due to a combination of herd rebuilding and the higher A$ impacting returns (MLA's Industry Projections).

Argentina halts feedlot support

8/04/2010

The Argentinean government will cease granting subsidies to lotfeeders for the fattening of animals for the domestic market.

The subsidy (in which the government reimbursed the difference paid by lotfeeders for grains used as inputs over a set price) will no longer be issued because the recent hike in finished steer prices has enhanced the profitability of the industry.

Although this measure will eliminate the distortion in the market (which left restockers at a disadvantage against lotfeeders),it is expected to further tighten beef supplies in the midterm (Infocampo).

This subsidy largely contributed to the 2009 beef production surge in Argentina, and increasing slaughter of young steers (which contributed to the liquidation process seen in recent years). Other factors which fuelled slaughter and production last year were the government imposed industry controls (since 2006) and the severe drought which affected the region since 2008.

The local government now aims to boost production by supporting the fattening of heavy steers and progressively increasing minimum slaughter weights - a measure which has already decreased cattle supply in local markets.

Farmer confidence lifts according to Rabobank

8/04/2010

Despite the higher A$ and its impact on farm-gate prices, the confidence of Australian farmers has swung back towards positive, led by high summer rainfall and strong commodity prices in a number of sectors, according to the latest quarterly Rabobank Rural Confidence Survey.

The survey of approximately 1200 farmers across a diverse range of commodities and geographical areas found that around 30% of farmers now expect conditions to improve in the coming year, while only 19% expect conditions to worsen.

A further 36% of farmers surveyed expect to see an improvement in their own business in the coming 12 months, while 32% also expect to see higher incomes - although rising input costs remain a concern.

Sentiment among sheep and beef farmers has particularly improved, with higher rainfall in the eastern states allowing many producers to take advantage of improved pasture conditions and restock their properties, further boosting demand and prices. Export demand and prices remain very high for sheepmeat, while tighter supply of cattle is helping to offset subdued demand from overseas markets.

The biggest improvements in confidence were seen in NSW and Queensland -where seasonal conditions have turned around most sharply - while South Australia was the only state to note deteriorating sentiment. This was mainly due to the somewhat subdued picture for global grain prices, as well as lingering drought in some areas of the state.

Uruguay beef exports recover in 2009-10

8/04/2010

Uruguayan beef exports during the fiscal year to March were up 27% to 203,465 tonnes swt year-on-year, as trade recovers after 2008's financial crisis.

The major increases were recorded to Russia (up 90% to 61,744 tonnes swt) and Asia (up 122% to 22,773 tonnes swt). Meanwhile, exports to the US continued to fall (28% year-on-year to 15,184 tonnes) as Uruguay takes advantage of higher prices in other destinations and negotiates E.coli recall procedures.

Exports to the EU (mainly Germany and Spain) surged 34% to 5,549 tonnes swt in March, taking advantage of the scarce Argentinean supplies in this market.

Cut to the bone

Embattled WA beef processor Harvey Beef will cut its operation back to four days a week after Easter and according to a report in the Countryman those four days will be on reduced hours.

In another blow for the State's besieged beef industry, WA's largest processor told the paper that it was now a numbers game and it simply did not have the cattle to continue running full-time.

While it is not unusual for abattoirs to reduce their hours over autumn and winter, WA Australasian Meat Industry Employees' Union vice-president John Da Silva said the union had been warned by Harvey about its decision, adding the live export sector was sucking cattle out of the system.

WAFarmers meat section president Jeff Murray rejected the suggestion that there was a lack of cattle to kill. "I don't agree that there is a lack of cattle in WA. I think it is more a lack of contracts that has seen producers hold back their cattle," he says.

AACo's $20 million cattle punt

The Australian Agricultural Company is outlaying an estimated $20 million buying more than 40,000 cattle since December as part of its growing emphasis on trading to exploit seasonal and market opportunities says Stock Journal.

A portion of the huge investment, sourced from across Australia, was made in December before the dramatic turnaround in seasonal conditions - and now that move is likely to pay off strongly for the world's biggest beef producer.

The paper says that other lines of cattle to fill the order were purchased during January and February as the impact of the big season started to take hold and AACo got ready to reap the rewards.

The investment is possibly the largest single cattle acquisition exercise (without land) seen in the past five years according to agents and while prices have not been disclosed some agents estimate AACo paid 150-180 cents a kilogram liveweight for the younger steer and heifer portion.

Handle future interest rate rises with care

A report in the Stock Journal says that interest rates are likely to rise another 1.5 pc in the next three years, and the Australian dollar should average around $US0.91 for 2010 according to National Australia Bank head of agribusiness, business markets, Rod Fraser.

But he has told the paper that in providing these market predictions he is also warning that any economic forecasts cannot factor in unforseen events such as the global financial crisis.

Speaking at the recent South-East Field Days, Fraser says the successful farmers of the future will be those who adopt interest rate and commodity risk management strategies which allow them to be wrong without their businesses suffering.

To help achieve that outcome he advocates a three-pronged approach to borrowing money - fixing a third of debt, having one third floating with an interest rate cap and the final third on variable interest rates.

Muscling should be seen as a beef asset

Stock Journal says many beef producers are hindering the performance of their herds by selecting against more heavily muscled females according to NSW government Industry and Innovation research leader of animal production Bill McKiernan.

The Armidale based researcher, speaking at the recent Beef CRC Maternal Efficiency Project update at Struan, SA, says producers will buy heavily muscled bulls to progress their herds but in replacement females are only looking at maternal traits.

"We have a tendency to have females produce a calf and grow that calf as quickly as possible, but are not really interested in selecting females for meat quality traits when we should be selecting all cattle for all traits, including meat yield," McKiernan says.

Within breeding herds strong emphasis is placed on fertility and weight gain, but McKiernan, who has been researching muscling in beef cattle since the 1980s, says increased muscling can have a far greater benefit to the bottom line.

Heat off BSE as Obama delays visit

US President Barack Obama's delayed visit to Australia may remove some of the heat from the Bovine Spongiform Encephalopathy (BSE) beef import debate says Queensland Country Life.

According to the paper Obama was to have arrived in Australia on March 25 but that was cancelled as he battled to push his historic health bill through Congress. After achieving that major milestone he now plans to visit in June, with his family.

Rural Press understands that had the visit gone ahead according to schedule, high on the agenda would have been the tougher quarantine process for beef imports from countries, including thus, with BSE.

Canberra's decision to upgrade the quarantine requirements on imported beef is also sparking fears of some retaliatory action by the US which could jeopardise Australia's almost 300,000-tonne annual trade to America.

McCamley offers Glenprairie

What is looming as the highest value rural property sale of the year in Queensland will take place when Sir Graham McCamley offers his magnificent central Queensland organic beef property Glenprairie for auction on a date to be announced, probably in July, says Queensland Country Life.

Located just 90 minutes north of Rockhampton, Glenprairie is one of the State's oldest properties, was one of the first to use Brahman cattle in Australia, and has had only seven owners in the past 155 years.

The property covers 46,500 hectares of superior quality grazing country, including more than 40 kilometres of coastal saltwater frontage and its pasture developments include 28 kilometres of pondage banks and six water courses spread out to supply 8910 hectares of marine floodplains.

Glenprairie sits in an average 900 millimetre rainfall belt, but has had 1025 millimetres in the year to date and is one of Australia's largest suppliers of quality organic beef. Agents are tipping a sale between $48 million and $56 million.

Swift's shadow extends south

Swift's Australia's already large footprint across the nation's red meat industry is likely to grow further with an agreement in principle announced a week ago to buy Rockdale Beef feedlot and export processing business says Queensland Country Life.

Although Swift was denying the sale a week earlier, its parent company, Brazilian giant JBS Friboi issued a statement announcing its intention to purchase Rockdale, although local management refused to comment pending regulatory approval.

Established in 1991 near Leeton in NSW, Rockdale is run as a joint venture by Japanese meat companies Itoham and Mitsubishi, is one of only two integrated feedlot/processing plants in Australia and is the nation's second-largest feedlot with a licence to run 53,333 head and process 600 head a day for export.

Swift is understood to have made a "low-ball offer" on Rockdale last year, but it was rejected. Japanese media suggests Rockdale has lost money for the past two Japanese financial years, blaming drought, high grain and feeder cattle prices and falling demand in Japan for its ills.

Season triggers big cattle market push

As eastern Australia's big rain event subsides and roads and paddocks again become passable, a major cattle trading window has opened for the industry according to a report in Queensland Country Life.

Elders executive sales manager Tony Gooden says the passage of rain across such a wide area has provided huge stimulus for extensive cattle movement in coming months, with early reports of sizeable shifts from north to south in both young and breeding cattle already taking place.

Gooden says with big depletion in cattle numbers during the dry in areas such as the channel country, southwest and Maranoa, particularly, there has been a surge in demand for restocking from areas further north in recent weeks.

He says that has seen the store market kick 20 pc on pre-Christmas prices and renewed activity from feedlots for feeder cattle is also stimulating demand, with a general shortage of grainfed beef in the pipeline.

Queensland rallies to fight prickly weed

There is enthusiastic landholder support for five Parkinsonia dieback training workshops this month which Queensland Country Life says will involve 150 grazing properties stretching from Cunnamulla to Normanton.

The dieback project, led by University of  Queensland's Dr Vic Galea, is aiming to establish community-based research on multiple properties to test the firepower of a naturally occurring soil-borne fungus known to kill the invasive prickly weed.

Biosecurity Queensland's Cloncurry based national co-ordinator for the Mesquite, Parkinsonia and Prickly Acacia Management Program, Nathan March, is supporting the rollout of the workshops, assisted by Longreach Landcare facilitator Ron Beezley.

The Parkinsonia dieback research was initiated in 2004 when the Barkly Landcare Association forwarded samples of the fungal pathogen to UQ for further investigation, leading to the ongoing project, which is funded by MLA.

Export express

A massive 8000-head consignment of cattle has set sail for Russia aboard the Ocean Drover according to a report in the Stock and Land, marking an historic milestone in Australia's live export industry.

The vessel left Portland a week ago, was to make a stopover in Fremantle and is then due to arrive in the southern Russian port of Novorossiysk by April 8 where all the cattle will be unloaded.

Exporter Wellard Rural, which owns the Ocean Drover and has organised the shipment, has never sent a vessel loaded with cattle to Russia. But it has debuted in style, overseeing the largest Australian shipment sent there.

Planning began more than a year ago and more voyages are already being discussed, spurred on by forecasts for continuing falls in domestic Russian beef production, creating demand described by Wellard boss Steve Meerwald as "insatiable".

Goulburn yards saga

The future of Goulburn saleyards, which The Land says were sold to a Victorian businessman for $100 a decade ago, appears uncertain with new yards yet to be started eight years after the original deadline.

According to a report in the paper, local livestock agents are alleging that they have paid at least $1.6 million in saleyard fees with "very little" in the way of improvement to the existing yards.

Now Goulburn Mulwaree Council might be invited to buy back the eight-hectare site it sold for $100 - a site which is today conservatively estimated to be worth hundreds of thousands of dollars.

Goulburn State MP Pru Goward is calling for a NSW government inquiry into the decade-long saleyards saga as since the sale its new owner - Kattle Gear Australia, run by Bendigo businessman Bill Vowles - has received at least $300,000 from the council to upgrade the site even though it was no longer the owner.

Stock take to the skies

Tens of thousands more livestock are heading overseas by planes every year according to a report in The Land as smaller transport ships become increasingly harder to find.

Livecorp chief executive Cameron Hall says it is just not economical to run smaller ships and says the average minimum-sized livestock vessel needs to be able to carry a minimum of 1000 head of cattle, and at the same time markets are opening in areas difficult to reach by sea, such as parts of Russia and China.

Queensland-based livestock exporter David Gardiner, who owns Austock Rural and is its managing director, currently sends 2000 dairy cattle overseas annually in 747-400 series cargo aircraft.

The shipping sector has consolidated into just a handful of companies during the past five years, with the industry now becoming "more corporate" and concentrating on bigger, more viable loads.

Feedlot pregnancy slips cause concern

 Feedlot animal health specialist Kevin O'Sullivan, from Bell Veterinary Services at Bell, Queensland, is concerned about the high number of heifers coming to feedlots preg tested empty when in fact they are pregnant says The Land.

He says his business preg tests at a lot of feedlots - doing tests six weeks after cattle have been in the feed yard, and is finding between three and 15 pc of every group of heifers is pregnant - "and that's a lot".

"So I reckon that the feedlot is the most fertile ground about, you don't even need a bull," O'Sullivan says. He suggests people are either preg testing too early and their tests are "no damn good".

"If these animals calve out there is a huge loss - to the producer, to the lotfeeder, and there is a huge problem for staff," he says. He says the upside is the approaching release of a vaccination to stop heifers being fertile for about eight months.

MLA UPDATE

Korean retail demand increases trade activity

1/04/2010

Prices for imported beef cuts in the Korean wholesale market remained steady this week as tight supply remains an issue. As Australian beef exports to Korea are increasing, an improvement in Korean stock levels is also expected.

Australian beef exports to Korea from 1-29 March totalled 10,074 tonnes swt, with chilled beef cuts accounting for 32% compared with 25% the same month last year. The improvement in Australia's chilled beef exports has been fuelled by solid retail demand in Korea. According to the Financial News, the Korean retail industry has enjoyed strong sales this March - consumer traffic and spending is on the rise in both department stores and large discount stores.

Cattle slaughter rates fall

1/04/2010

OTH prices in NSW and Queensland eased this week on the back of an increase in supply in Queensland and the shortened week due to Easter.

Competition for suitable cattle has eased at physical markets - the lifting of transport restrictions and producers being able to get onto country that was previously flooded to muster cattle, has resulted in processors lowering rates between 5¢ and 15¢/kg cwt.

Yearlings fell between 4¢ and 6¢ in NSW and between 7¢ and 9¢/kg cwt in Queensland. Export suitable grown steers registered the largest falls, as the ongoing high value of the A$ continues to restrict export demand.

Saleyard prices were also cheaper for slaughter cattle. Japan ox finished at 170.6¢, 5¢/kg cheaper than last week. The eastern states trade steer indicator was firm on last week to finish Wednesday's markets at 185.5¢/kg lwt.

Queensland plants drop rates on export grades

1/04/2010

The shortened Easter week has seen much lower activity in livestock saleyards, with yardings of cattle and lambs halved in NSW and Victoria, and less interest from export processors.

Queensland packers have lowered offer prices on export cattle grades, especially cows, reflecting the continued high A$ and end of buying for Golden Week in Japan.

Furthermore, processors are receiving increased bookings of grown steers and cows for post-Easter delivery, as Queensland and northern NSW dries out after the floods.

The normal slide in cattle prices through to a low in May seems likely to be exacerbated by a recovery in cattle yardings from the rain-affected levels in the March quarter.

National lamb price indicators were largely unchanged this week, but this masked falls across saleyard and direct selling in NSW and rises in Victoria and SA. Restocker lambs and ewes continue to be in high demand and low supply, with prices up around 30% on last year for restocker lambs and 64% for mutton sheep.

Finished lambs suited for butchers, supermarkets and export remain in good supply, reflecting the season. While prices are gradually slipping as lamb supplies increase, the national trade lamb indicator is still 7% above last year and heavy lambs 3% higher.

Excellent wet season comes to a close

1/04/2010

With the official wet season concluding at the end of March, tropical cyclone Paul continues to hover around the gulf and north-east NT, ensuring a wet finish to what has been a good to excellent wet season across most of northern Australia.

While the start to the 2009-2010 season may have been sluggish, once the rains started in mid-December, a series of systems delivered excellent falls during early 2010, punctuated by near-record flooding throughout central and southern Queensland in early March.

With four months of above average rainfall across Queensland, the dramatic turnaround in seasonal conditions kicked prices in the cattle market by 25-30% for light and cow categories, while heavy export prices improved 15-20% on the back of very tight supplies. The improvement in seasonal conditions was also shared across much of northern NSW and southern NT, with many regions recording annual rainfall totals within the first two months of 2010.

While flooding throughout southern Queensland restricted livestock movements, damaged capital and equipment and resulted in some stock losses, the outlook for the remainder of 2010 looks the brightest for many years. With many regions reporting lower stock numbers heading into the recent wet season, many producers are now faced with ample feed and water supplies, which has fuelled restocker demand. While turnoff is expected to remain tighter year-on-year throughout the coming three-months, albeit higher than for the March quarter, the quality of cattle to be offered is anticipated to be very high, as total turnoff increases into the second half of 2010.

Heading into April, the rainfall focus will shift to southern Australia, with many regions hoping for good falls between April and June in order to capitalise on above average falls throughout summer.

Feeder buyers still hungry

1/04/2010

In March, national lamb yardings across MLA's NLRS reported markets increased 10% on the five-year average, with 850,000 lambs penned. However, numbers remained 5% lower than March 2009, mainly due to the improved seasonal conditions this year.

Feeder buyers have been more active and purchased 33% more lambs than March 2009. This has been particularly evident across the south-east, where ample feed grain supplies from last year's harvest and confidence about future lamb prices has lifted demand. Limited numbers of lightweight store lambs has also resulted in feeders securing heavier lambs, often purchasing lambs up to 20kg cwt.

Strong restocking demand has been maintained because of the widespread rainfall in the eastern states. At the same time, limited availability of suitable lines resulted in 25,000 fewer lambs returning to the paddock in March compared with last year. Restocker interest returned in WA despite the tough summer months, as the number of lambs purchased by producers lifted 30% during the month.

The majority of physical markets have yarded an ample number of prime lambs this month, with many exceeding 18kg cwt and displaying plenty of finish. With many regions experiencing a solid start to 2010, it is no surprise that processors have secured a large proportion of the lambs sold in March. Second cross lambs selling to processors also lifted around 8% year-on-year - more producers are opting to sell through physical markets and prime lamb availability is increasing.

With some producers holding high hopes in relation to the predicted profitability of sheep and lamb enterprises, around 35% less first cross lambs were yarded during March. Interestingly, a larger percentage of graziers have opted to resist selling first cross lambs in the face of the strong lamb prices, instead choosing to retain their first cross ewe lambs for breeding stock.

A$ steady for March quarter

1/04/2010

After an extremely volatile 2009, the A$ stabilised throughout the first quarter of 2010, but continues to trade at uncomfortably high levels for the Australian red meat exporting sector. For the March quarter, the A$ averaged 90.4US¢, an increase of 36% on the first quarter of 2009 (66.4US¢), but 1% below the final quarter of 2009 (91.1US¢).

Ranging from a low of 63.2US¢ to a high of 93.5US¢ in 2009, the volatility of the A$, combined with the fallout from the global financial crisis and recessions in almost all advanced economies resulted in beef demand and prices falling, with Australian exporters enduring a very tough year.

In the first quarter of 2010, the relative stability of the A$, trading between 87-93US¢, has resulted in an improvement in trading conditions, as buyers have been less concerned about being caught out by large currency movements. Additionally, the low beef stocks in many markets has assisted buying, with spot buying more prevalent in the US and Japan. The tighter supplies out of Australia also influenced prices. For the first quarter of 2010, 90CL export beef prices to the US lifted 17% (in A$ terms) from the December quarter, but remained 7% below the first quarter of 2009 - primarily due to the higher A$.

While the A$ rise has been fastest against the US$, it has also risen against almost all other currencies. Year-on-year for the March quarter, the A$ averaged 32% higher against the Japanese yen, 29% against the euro and 10% and 9%, respectively, against the Korean won and Indonesian rupiah.

Looking ahead, forecasts for the A$ vary between Australia's leading financial institutions, with a range of 85-95US¢ by the end of 2010.

Japan buyers run out of steam

1/04/2010

Beef export trading with Japan this week was subdued compared with the last couple of weeks, as most buyers have already secured the products required before the beginning of the Golden Week holiday (29 April to 5 May).

In the Japanese wholesale market this week, the trade reported firm interest in Australian frozen beef, particularly barbecue items. Trimming items continued to be in good demand.

Japanese schools and businesses commence a new term from 1 April, and beef demand starts to pick up from now to Golden Week as consumers celebrate a fresh start and the arrival of spring.

Bringing back the beef roast

1/04/2010

Meat & Livestock Australia's (MLA) latest marketing promotion aims to get beef roasts back on Australian dinner tables this autumn with a focussed educational consumer campaign.

Research has shown that only 4% of consumers cook beef roasts regularly as many are unsure what cuts to buy and how to cook them. The latest campaign aims to reignite consumer desire for beef roasts.

The educational consumer magazine, ENTICE, is the centrepiece of the campaign. It provides information on the different cuts suitable for roasting, recommended cooking times and temperatures, recipe ideas and general tips to ensure consistently great results. Over 2 million copies of the next edition of ENTICE, focusing on beef roast, will be distributed nationwide through participating retailers throughout April.

A new 30-second TV commercial will be broadcast from 7 April featuring Laurie Lawrence unable to resist the juicy beef roast Duncan Armstrong is cooking for his mates using tips and recipe ideas from ENTICE. The commercial runs over three weeks in Sydney, Melbourne, Brisbane, Adelaide, Perth and Tasmania and is supported by point-of-sale material, public relations and online activities. MLA members can view the ad on their next episode of feedbackTV or visit http://www.themainmeal.com.au/beefroast.

March cattle numbers up

1/04/2010

Despite the wet start to the month, severely restricting the movement of cattle, particularly in Queensland, national throughput at MLA's NLRS reported markets increased 3.5% compared with March 2009. However, this week supply was down 33% week-on-week because of the Easter long weekend, with some markets cancelled as a result.

Flooding in the central and western districts of Queensland caused road closures and reduced numbers in Queensland for the first couple of weeks of March. Roma saleyards were flooded and sales were cancelled a number of times. Once the countryside dried out and transport weight restrictions were lifted, numbers returned to more normal levels, particularly late in the month.

The excellent start to autumn allowed producers to hold onto stock for longer, although most of the states registered a year-on-year rise in throughput. This followed the low turnoff in January/February. NSW finished the month 6% higher, Victorian numbers were up 6%, SA 29% and WA 13%. Tasmania and Queensland were the only states to go against the trend, with supply 3% and 17%, respectively, lower than the same period last year. This increase in other states was predominately driven by improving prices and tight supplies in Queensland drawing cattle onto the market.

Young cattle accounted for the largest portion of the March yardings, with a good supply of leaner C and D muscled lines suited to lotfeeders and restockers.

Widespread rain at the start of the month provided good follow up from the downpours at the start of the year and further boosted restocker demand. The added competition caused prices to rise throughout the first half of the month, as producers looked to replenish depleted stocks after several years of drought.

Despite a generally cheaper trend over the second half of March, most eastern states indicators remain above February 2010 levels and well above the same time last year. The Eastern Young Cattle Indicator (EYCI) finished March at 346.5¢, a fall of 2.25¢ on last week and a rise of 7.75¢/kg cwt on last month.

Japan buyers run out of steam

1/04/2010

Beef export trading with Japan this week was subdued compared with the last couple of weeks, as most buyers have already secured the products required before the beginning of the Golden Week holiday (29 April to 5 May).

In the Japanese wholesale market this week, the trade reported firm interest in Australian frozen beef, particularly barbecue items. Trimming items continued to be in good demand.

Japanese schools and businesses commence a new term from 1 April, and beef demand starts to pick up from now to Golden Week as consumers celebrate a fresh start and the arrival of spring.

Hide market steady

1/04/2010

There were only minimal alterations to green hide quotes in the past week, with the upcoming Easter break expected to slow tenders over the next fortnight. Processed hides were dearer for brine cured and wet blue lines. The Hong Kong Leather Fair (held last week) is anticipated to give an indication of the strength of Asian buyer demand moving forward.

Co-product returns support cattle values in February

1/04/2010

Potential co-product values for a Japan ox improved in February relative to the previous year, assisted by higher values for hides, tallow and other rendered products.

The potential return to processors on co-products from heavier grassfed steers lifted 15% year-on-year in February to $165.48/head, underpinned chiefly by better hide prices. Hide values continue to recover on the back of improving demand for leather and leather goods globally, as well as tighter supplies out of Australia.

Tallow values also lifted over the year, averaging 15% higher in February. Again, lower production levels helped, but the predominant driver was a 67% lift over the same period in the price of palm oil - a close substitute.

Meat and bone meal prices were relatively flat over the year, as low soy meal values kept a lid on any price increases, while bloodmeal values continued to rise, owing to its increased popularity for specialty animal and aquaculture feeds.

In contrast, offal values declined, affected by the high A$ and subdued demand from Japan and Korea, despite improved buying from Russia. Indonesian demand for edible Halal items in February was disrupted by rumours of possible government restrictions on trade.

Inventory concerns in the US

1/04/2010

US meat packers and grinders are increasingly becoming concerned about not having adequate supplies of imported beef. This tightening in supplies, largely on the spot market, is currently pushing the market higher.

CIF prices for imported 90CL pushed 1.5US¢ higher this week, to 162US¢/lb CIF, while in A$ terms the price lifted 1.6US¢, to 359.6A¢/kg FAS.

To clarify, while there have been reports of US domestic supplies tightening, according to USDA weekly slaughter figures, beef cow slaughter so far this year has been 9% higher than a year ago. This has reportedly been due to an increase in Canadian cows entering the US market, but is unlikely to be sustained at these higher levels.

Meat consumption predicted to grow in Egypt

31/03/2010

Meat consumption in Egypt is expected to grow in line with economic gains according to Business Monitor International (BMI).

The forecast consumption increase of higher value beef and veal is expected to average 3.2% to 2013-14, while overfall food consumption is predicted to see growth of 6.84% in the same period.

With a population of nearly 80 million and GDP per capita growth of more than 50%, to US$4,100 forecast to 2013-2014, Egypt's meat consumption in value and volume terms is expected to continue registering considerable growth beyond 2014.

Being a predominantly Muslim nation, Egypt is also emerging as potentially one of the Middle East's most lucrative Halal food markets (BMI).

Australian beef exports to Egypt in 2009 totalled 1,160 tonnes grassfed up from 284 tonnes in 2000, while lamb in 2009 reached 228 tonnes compared with 155 tonnes in 2000.