BIGGEST PIE LAUNCH EVER  

FOUR'N TWENTY LAUNCHES 100% ANGUS BEEF PIES

Four'N Twenty, the nation's iconic meat pie brand, has launched its new Legendary Angus Beef range made with 100% Certified Australian Angus Beef.  And it will splash the Angus brand across the nation in a $1.7 million advertising program.

In an exclusive agreement with Certified Australian Angus Beef, Four'N Twenty will be the only meat pie licensed to use CAAB endorsement across retail and convenience markets.

Patties Foods Ltd, Australia's largest meat pie producer and owner of Four'N Twenty, says the marketing campaign behind its Legendary Angus range will be the biggest media launch the pie category has ever seen.

Greg Bourke, Managing Director of Patties Foods Ltd, says the Four'N Twenty Legendary Angus is a knockout product that will drive true category growth, attracting new and past users to on-the-go hot food.

"100% Certified Australian Angus Beef is the tenderest, juiciest and tastiest beef on the market.
"Our Four'N Twenty Legendary Angus Beef pie range offers a superior taste that no one with an honest appetite for pies can possibly resist.

"Blind taste tests have shown that the Legendary Angus pie is significantly more liked, encourages greater intent to purchase, and is clearly preferred over a major competitor offer", Mr Bourke said,

The new range of 220g Four'N Twenty Angus Beef pies will be available in three varieties, Legendary Angus Beef, Legendary Angus Beef and Pepper and Legendary Angus Beef, Cheese and Bacon. Recommended retail price is $3.95.

CEO of Certified Australian Angus Beef, Phil Morley, applauded the new Four'N Twenty Legendary Angus Beef pie as another great product using Australia's best beef.

"Angus beef is the best tasting, juiciest and most tender beef on the market.

"It's great to see two Aussie legends getting together - Certified Australian Angus Beef, and Four'N Twenty," Mr Morley said.

The launch of the Four'N Twenty Legendary Angus Beef range is being supported by an integrated advertising campaign with over $1.7 million investment in TV, Radio, On-line, Stadium and Point-of-sale.

View Patties "Message to Pie Lovers Video"

Bring back the stock squad

SA Farmers Federation wants the stock squad reinstated to combat continuing livestock theft says Stock Journal and says a specialised unit must include officers familiar with NLIS and saleyard operations.

While it has been more than two decades since the stock squad last operated, SAFF livestock committee chairman Andrew Ogilvie says that a small team which truly understands the industry could be effective.

Beltana Station's Graham Ragless and Laura McDonald says they have "hit a brick wall" when dealing with police about the alleged theft of cattle from their pastoral holding and despite receiving an NLIS warning the matter remains unresolved.

But Police minister Michael Wright says he is confident the systems SA police have in place to investigate stock theft are effective and that he is advised the number and frequency of incidents reported "does not warrant the establishment of a specialised livestock squad at this time".

Historic Kidman property for sale

Quinyambie Station, one of SA's largest pastoral leases and part of the S Kidman & Co's beef cattle empire - has come onto the market with Elders Real Estate according to a report in the Stock Journal.

The 1.21 million hectare property has been part of the Kidman business for 94 years but is being sold to enable the company to invest more money into its northern breeding country.

The paper says that in the north east corner of the State, Quinyambie is 160 kilometres from the regional hub of Broken Hill and stretches 230 kilometres between its northern and southern boundaries.

Quinyambie has been aggressively destocked because of two dry seasons and last year's fierce dust storms but its seasonal fortunes have changed with 250 millimetres falling since the start of this year. It has averaged 9000 cattle for the past 20 years.

‘Grassed-up' SA producers stock hungry

Grass driven livestock producers and their agents are hitting the roads in a national search for store cattle and breeding ewes, often hauling them thousands of kilometres back to their new homes in SA says Stock Journal.

In the past three months more than 200 decks of station cattle have been bought by Broken Hill pastoralists from the drought-stricken Pilbara areas of WA and the NT around Alice Springs.

Just eight months ago many of these pastoralists were forced to truck out their own stock after devastating dust storms destroyed feed. But after receiving 150-200 millimetres of rain earlier in the year stock are now being bought back in.

Elders national livestock manager Chris Howie says producers faced with a seasonal shortage of cattle are prepared to pay high freight costs to find them and where possible are sourcing smaller cattle to maximise numbers to freight.

Supersize yardings push Carcoar to limit

Supersized yardings are becoming run of the mill at Carcoar's Central Tablelands Livestock Exchange (CTLX) according to a report in The Land, pushing its superyards to their holding capacity.

In March the complex yarded 4010 store cattle, in April it was the record-setting Blue Ribbon Weaner Sale, which attracted 9553 weaners and by mid May there were as many as 6000 store cattle arriving for sale.

McCarron Cullinane director Lindsay Fryer, Orange, says that the pulling power of CTLX is huge, and although larger yardings could sometimes mean less coin, the prices at the yards are as good as anywhere - if not better.

He says for the past few monthly cattle sales the prices have held up really well and he has been more than pleased with results and is not expecting any slowdown during June, tipping yardings up to 5000 head.

Big rush for Russian business

The Russian bear might have awoken after 18 months of hibernation, with explosive growth being recorded in beef imports out of Australia and the US in the past three months says The Land - but the boom has to be seen in perspective.

Exports to Russia for April totalled 4107 tonnes, which the paper says was a dramatic rise from 1150 tonnes the previous month and just 870 in February - but pale when compared with 8246 tonnes in April 2008.

The paper says although they are still easily the best trade figures recorded since the country went into economic meltdown following the onset of the global financial crisis in mid-2008.

Russian Meat Importers Association chief executive Sergey Yushin says in his view the biggest market potential remains in frozen product, over chilled, because of Russia's huge distances and logistical problems in getting product around.

Japan hit hard by FMD

Japan is now battling a foot and mouth disease outbreak of major proportions according to The Land, with latest reports suggesting more than 80,000 pigs and cattle are likely to be destroyed in an effort to rein in the epidemic.

The paper says that in the past few weeks the disease has continued to spread dramatically, with the infection now being confirmed on approximately 100 farms on the southern island of Kyushu.

About 20,000 cattle and pigs have already been destroyed and while the outbreak has been confined - so far - to the prefecture of Miyazaki this is also one of Japan's better known Wagyu areas.

Of particular concern is the destruction of 49 of the prefecture's 55 approved Wagyu artificial insemination sires and the remaining six have since been removed to an isolated location. A formal closure of beef exports has now been imposed.

Beef anger at exam bias

Red meat producers are starting to voice their anger over high school children being "ideology bashed" by anti-cattle literature presented in an important exam according to a report in The Land.

Meat and Livestock Australia has heavily criticised an article in the controversial NAPLAN exam, which told Year 7 students that livestock contributed more to climate change than the coal industry.

MLA spokesman David Pietsch told the paper that the government-written examination also included information that was "biased", "misleading" and contained a series of "incorrect facts".

Pietsch says it has "naturally" got producers quite upset, and there are various letters going to ministers on the issue. Some of the claims producers say are incorrect are the details extolling the virtue of "roo over moo".

AACo looks south to spread the risk

The embattled Australian Agricultural Cattle Company (AACo) is to move a third of its 200,000 head breeding herd south to northern NSW and southern Queensland says The Land in a bold strategy to spread exposure to seasonal risk - and cut costs.

AACo will sell the 70,000-80,000 head to a newly formed financing partner, which in turn will lease the stock to selected breeders on the condition they sell the calves back to AACo.

The paper says that the new "alliance partnership" is likely to involve about 20 cattle producers based between Dubbo in NSW and Longreach in Queensland breeding AACo genetics on behalf of the big beef company.

The young progeny will then be on-sold as weaners to nearby markets, saving AACo as much as $40 a head in strategic freight advantages over the weaners bred and freighted from the company's northern Australian stations.

JBS Swift beef earnings boom

JBS Swift's combined US and Australian beef operations have reported a record first quarter earnings result on the back of the current boom in wholesale prices in the US domestic market and expanding global sales says Queensland Country Life.

The company's American Beef division, which includes its Australian operations, has reported first quarter net revenue of $US2.83 billion, up 5.5 pc on the same quarter last year. That represents 40 pc of the company's global net revenue for the period.

The US Beef division's earnings before tax of $US170 million was also a new record for the quarter. That figure was up a startling 185 pc on the previous year's first quarter, primarily because of higher beef prices.

According to industry analyst Steve Kay wholesale beef prices in the US have risen at least 11 pc since mid-March and with overall slaughter down 2.3 pc to 1.93 million head it shows profit levels are purely price driven.

Hunt for red meat heroes

Queensland Country Life is asking do you know a beef producer, processor or retailer, or restaurants, exporters or service providers who deserve to be honoured for their contribution to the red meat industry.

In other words, the paper asks do you know someone who has worked hard to make the red meat industry sizzle for their whole career, and/or have contributed significantly to the wider industry.

These are also the questions AgForce and Rabobank are asking as they join forces to help showcase excellence in Queensland's red meat industry at the annual Red Meat Awards, which will be announced at the 2010 Ekka.

The awards will be held on Wednesday August 4 and nominations for a range of categories, covering every stage of the production chain, are open until July 5. More details are available from AgForce on 07 3236 3100.

Drought-free Queensland on the cards

Queensland has all but shrugged off its dry and dusty image of the past decade according to a report in the Queensland Country Life, with only 1.4 pc of the State still officially in drought.

The paper says that in the aftermath of this year's drenching wet season, the State's Primary Industries minister Tim Mulherin has just revoked the drought status of a further 15 shires.

Mulherin says that drought-declared areas now only include parts of two local government areas - Banana Regional Council and Goondiwindi Regional Council - and all of Toowoomba Regional Council.

The State's drought status is a far cry from the same time last year when a devastating 35 pc of Queensland was covered by drought declarations - in a topsy turvy summer many producers have gone from drought to record floods.

Top beef show keeps growing

A growing reputation - together with a multitude of seedstock and carcase exhibits and trade stall on display - has catapulted National Beef, Bendigo, to its position as one of the eastern states premier beef events says Stock and Land.

This year 200 exhibitors and 800 head of cattle were paraded through the various rings - with 140 of these sidelined for the carcase competition and 660 to be judged in the breed classes.

Despite difficult seasons in recent years, committee chairman Richard Ham says the event is continuing to grow its market share and the committee is continuing to put together an event attractive to exhibitors and the broader industry.

Ham says local and royal shows don't have the critical mass of cattle which you will get at a specialist event such as National Beef - "we run a specialised beef event with a very clear focus on beef breeds".

US boosts its stake in beef

Richer economies appear to be regaining their taste for US beef according to Stock and Land with the US Meat Export Federation reporting during the first quarter of 2010 exports were up 22 pc on volume on a year ago to 157 million kilograms.

The paper says that those exports are boosting prices 10-15 pc for US producers this year - an increase it says is expected to soon reach consumers via the retail shelves in supermarkets.

Exports of US beef amounted to 10.6 pc of production in March, compared with 9.4 pc a year ago, with the industry actually recovering from two recessions - the worldwide economic downturn and the 2003 BSE crisis.

At the time of the BSE crisis exports amounted to more than 13 pc of US production but by 2004 that had collapsed to just 3.7 pc. They had recovered to 11 pc by 2008 before slumping again because of the global financial crisis.

MLA UPDATE

Friday daily livestock article

28/05/2010

Numbers declined at Roma prime by over 50% helping to maintain strong competition. Plain heavyweight yearling steers sold 2¢ dearer at around 165¢/kg. Heifers were dearer by 6¢ to 9¢ topping at 178¢/kg. Bullocks to slaughter held firm at 175¢ while heavyweight cows sold 7¢ stronger at 151¢/kg.

Dubbo also had a yarding that was well down after rainfall in some of the supply area. Medium weight vealer steers to restock sold around 200¢, realising gains of 2¢/kg. Heavyweight yearling steers to feed slipped 3¢ - to 182¢ while those to slaughter were 3¢ higher at 186¢/kg. Heavyweight grown steers were slightly dearer at 182¢ as medium weight cows were mostly firm selling around 139¢/kg.

At Bairnsdale numbers remained similar to last week and quality was slightly down. Heavyweight vealer steers sold to strong trade competition making from 191¢ to 208¢/kg. Yearling heifers were mostly dearer, medium weights to slaughter made around 175¢/kg. Heavyweight grown steers lifted 3¢ to 176¢ as heavy D4 cows made from 142¢ to 155¢/kg.

The Eastern Young Cattle Indicator settled at 344.5¢ after Thursday's markets, 3.5¢/kg cwt up on last week. Trade steers were down 1¢ at 185¢ as feeder steers jumped 2¢ to 185¢/kg. Export grades were strongly sought after with Japan ox lifted 3¢ to 181¢ and US cow was 2¢ dearer at 133¢/kg.

Numbers increased slightly at Wagga and quality was varied. Trade lambs to feeders lifted $2 to mostly sell at $119/head, whilst those to the trade held firm at 511¢/kg cwt. Heavy lambs gained up to 9¢ and more in places as most pens averaged 504¢/kg cwt. Merino ewes to the trade were $5 cheaper at $110/head and settled at 446¢/kg cwt.

The eastern states restocker lamb indicator eased 19¢ on last week to settle at 511¢/kg cwt. Merino lambs slipped 6¢ - to 443¢, while light lamb was 5¢ dearer at 462¢/kg cwt. Trade lambs settled at 510¢, to be 8¢ stronger and heavy lambs lifted 13¢, settling at 496¢/kg cwt. Mutton gained 3¢ finish on 406¢/kg cwt.

Japan FMD claims Wagyu bulls in Miyazaki

27/05/2010

The unprecedented outbreak of food-and-mouth disease (FMD) in Japan claimed its 200th case this week (as of 24 May), all confined to the Miyazaki prefecture (located in Kyushu region, southern Japan).

As the locals and veterinarians work around the clock to contain the disease, the Japanese beef industry is closely monitoring the destinies of 49 highly prized Wagyu stud bulls that the Japanese ministry of agriculture has advised the Miyazaki prefecture to slaughter.

Miyazaki is known for its premium quality Wagyu bulls, distributing semen from carefully crafted, high performance bulls to other cattle regions in Japan. The government has concluded that the bulls need to be culled, following the discovery of FMD in the livestock improvement centre where they are housed.

In the meantime, there has been no discernible impact on beef consumption or supply in the Japanese market due to the FMD outbreak. From late May to the end of June is traditionally the quietest period of the year for meat consumption. This has been accentuated this year by continued subdued consumer spending resulting from the economic downturn. Nevertheless, the trade has been monitoring consumer trends carefully, with some anticipating a potential impact on consumer attitudes if the disease continues to spread.

Average Wagyu carcase prices fell for A5 and A3 categories this week (Tokyo Meat Market), but it is too soon to regard it as a result of the FMD, according to the trade sources.

Korea's imported beef market grows 16%

27/05/2010

Korea's beef imports increased 16% year-on-year over the January to April period this year, totalling 80,522 tonnes swt. Frozen beef imports grew 15%, while chilled imports increased by 25% compared with last year (KITA).

Imports of Australian beef rose 6% from January to April this year compared with the same period last year - totalling 41,836 tonnes swt. While volumes were up, Australia's imported beef market share decreased to 52%, down five percentage points on last year.

Beef imports from the US increased to 24,513 tonnes swt this year (up 45% year-on-year). Imports from New Zealand lifted 11% year-on-year, totalling 13,231 tonnes swt. Over the period, US and New Zealand share of Korea's imported beef market totalled 30% and 16%, respectively.

Low US meat inventories

27/05/2010

US beef, pork and poultry cold storage inventories stood at 1.902 billion pounds as at the end of April, 16% less than a year earlier and 10% below the five year average, according to data recently released by the United States Department of Agriculture (USDA).

Boneless beef stocks, at 314.4 million pounds, were 9% below both the same period in 2009 and the five year average. Contributing to the reduced storage levels has been lower imports of beef so far in 2010 from Australia, NZ and Uruguay, along with higher US beef prices, which has reportedly seen many end users further reducing inventories in April.

Wholesalers have shown a reluctance to hold large meat inventories after the events of 2008 and 2009, when a volatile exchange rate and sharp demand slowdown left many operators in very difficult situation. As a consequence, many end users are entering the grilling season with much lower inventories than usual, which could result in sustained price pressure if demand improves

So far this month, the spot price for imported 90Cl Australian beef has averaged 172.5US¢/lb, 29% higher than the same period in 2009.

Heightened demand helps hide values higher

26/05/2010

Australia exported 1.9 million cattle hides over the first three months of 2010, 53% less than the same time a year earlier. Lower exports were due to much tighter supply - with adult cattle slaughter back 6% to 1.8 million head over the same period due to heavy rains and flooding limiting (and in some cases preventing) cattle turnoff in northern NSW and Queensland - as well as some buyer resistance to the sharply higher prices on offer for cattle hides (Australian Bureau of Statistics).

Despite a steep drop in the number of hides shipped, the A$ value of these exports surged 19% over the same period to $60.8 million for January - March 2010, on the back of vastly improved prices for cattle hides.

Hide prices have steadily lifted this year after bottoming out in early 2009, with the sense of panic, fear and dramatic slow-downs that engulfed the global leather processing and manufacturing industries as a result of the GFC gradually unwinding. This in turn has improved demand, allowing importers and processors alike to work through large stockpiles as trade resumes.

Hide prices in May - which have also been helped this year by lower cattle slaughter figures - are now averaging around 56% higher year-on-year for wet-blue hides (tick-free), and well over 400% higher for green hides, which were particularly affected by events last year (MLA's NLRS). Despite this, prices still remain low in a historical sense.

US back on the burgers

Australian beef is now selling in the US for prices almost 30 pc higher than it was four months ago according to The Land as the American cow herd declines to its lowest level since 1949.

The paper says that the price of our hamburger grade beef going to America, Australia's second-largest beef buyer, has jumped a whopping 27 pc since the start of the calendar year.

While the Australian dollar has skyrocketed from US71 cents to as much as US92 cents in the past year, making it more expensive for Americans to eat Australian beef, the demand for, and price of, our beef has continued to rise.

Australian exporters are now in the position of being able to charge their US customers an average of 12 pc more during April than they were able to at the same time last year.

Last roll of the dice for Casino?

One of the State's largest beef cattle selling centres, the Casino Regional Livestock Exchange, may soon be on the market and The Land says there is little doubt at a local level private ownership will mean increased fees for producers.

The 44-hectare complex on the northern side of the town, billed as the State's Beef Capital, is owned by the cash-strapped Richmond Valley Council, which has posted preliminary budget estimates for this financial year showing it is $500,000 in the red.

After receiving inquiries from two potential buyers the council - which has put a $9 million pricetag on the property - held a public meeting to garner feedback from the wider beef industry.

Only 60 people took the time to turn up, which Mayor Col Sullivan told the paper was disappointing given the size of the region's beef industry and the numbers that will be affected if the complex changes hands.

Red meat's new environmental blitz

The Australian red meat industry has launched an ambitious new communications campaign designed to drive its key environmental messages into the heart of the broader community says The Land.

The $300,000 media blitz - by far the most significant environment-related community awareness initiatives tackled by MLA - will run in metropolitan daily newspapers in the run up to International Environment Day on June 5.

The paper says the campaign is expected to reach an estimated audience of 12.7 million, with the first round of advertising run last week and the second round appearing around the country this week.

MLA managing director David Palmer says the key message is that Australian beef and sheepmeat industries can be trusted because they can demonstrate their credentials in management practices and custodianship of the land.

It's mythbuster time

A report in The Land says busting many of the myths about red meat's environmental foot print will be one of several roles for the new website launched last week as part of MLA's new Red Meat Green Facts campaign.

The paper says that the site - www.red,eatgreenfacts.com.au - will be operated as an independent and standalone domain, and not be seen simply as an extension of other MLA websites.

The site is designed for people wanting to know more about the red meat industry's environmental credentials, setting out facts in key areas including land, water and air-based environmental issues, from the breeding and growing, lotfeeding and processing perspectives.

It includes a series of information layers, ranging from simple, easy-to-understand information to the more technical, science-based facts designed to counter many of the recent myths about the environmental impact of beef production.

Shoppers sold on meat but more and more thinking ‘green'

While Australians generally have a positive view towards the environmental responsibility of livestock producers, a new national Rural Press report says that they also see beef production as having the highest impact on the environment relative to other meat protein options.

The report says that is just one of a host of findings from a major survey commissioned by Meat and Livestock Australia and carried out as part of the lead-up to the launch of the Red Meat Green Facts campaign.

The survey involved extensive consumer research across all the Australian capitals, the idea being to better understand broader community perceptions about beef production and its impact on the environment.

The research was conducted in January and February across a diverse sample of more than 750 respondents, with about two thirds saying they were either "very" or "extremely" concerned about the environment. The good news is this figure is about 10 pc lower than similar surveys conducted in 2007.

Ag fund beefs up in the south

Superannuation investment is replacing the widely-discredited managed investment scheme (MIS) model as the owner of a large-scale beef cattle enterprise on Tasmania's King Island says The Land.

The Melbourne-based Sustainable Agriculture Fund (SAF) headed by Frank Delahunty has emerged as the walk in, walk out buyer of Great Southern's King Island grazing properties.

The paper says that Elders negotiated the sale of the four-property aggregation, with SAF paying $27 million for a total of 16,700 hectares along with 6500 head of Angus cattle and all the farm plant.

SAF was established in 2007 to attract superannuation funds into agricultural investment and in February this year it also took delivery of two Great Southern properties in north Queensland as well as one at Goondiwindi and another at Croppa Creek in NSW where it is already sowing a winter crop.

CAAB keeps on growing

The growth of Certified Australian Angus Beef (CAAB) continues says a report in The Land with the appointment of Alison Schofield as supply relationships co-ordinator based in Brisbane to cover the significant Queensland market.

The paper reports CAAB executive officer Phil Morley as saying the new staff appointment will further provide support to the brand's licensed distributors, retailers and food service customers.

He says Schofield's experience in customer-focused roles will equip her well to drive the expansion of CAAB and Angus Pure in the Queensland market, and provide Angus brand support, including processors supplying the successful McDonald's Angus burger program.

Schofield has a Bachelor of Science (Agriculture) and Bachelor of Applied Science (Equine) combined with a background of working in client liaison and customer service as an MLA project officer.

Grazing a top climate solution

The Land says livestock and pastoral systems have a major role to play in climate change mitigation according to a review released by the United Nation's Food and Agriculture Organisation (FAO).

The report says grasslands cover 70 pc of the world's agricultural land, more than a billion people depend directly on livestock for their living and rangelands store as much as 30 pc of the world's soil carbon stocks, plus carbon stored above ground in shrubs and trees.

Some 18 to 28 billion tonnes of carbon is estimated to have been lost as a result of rangeland degradation, and overgrazing has been estimated to release as much as 100 million tonnes of carbon dioxide every year.

The report's author says in view of the vast extent of grasslands and rangelands and the degraded nature of large areas of these systems, the potential to sequester carbon through improved livestock and management practices is significant.

Roma hosts grand Angus forum

The Angus breed has enjoyed outstanding growth in recent times according to a report in Queensland Country Life and will come under the spotlight with its Queensland Angus Forum in Roma on June 9.

It has achieved what the paper says is an arguably unequalled level of consumer recognition throughout a range of markets and the breed is proving to be adaptable and commercially viable in Queensland.

The Queensland Angus Forum in the Roma Bungil Cultural Centre presents a first-time opportunity for Queensland beef industry members to experience valuable information and discussion on Angus cattle from a panel of highly-regarded speakers.

They include Senator Barnaby Joyce, JBS Swift livestock manager Brett Campbell on Angus premiums in the marketplace, Australian Lot Feeders Association president Jim Cudmore on Angus in the feedlot and CAAB CEO Phil Morley on the branded beef success story.

PIC ‘rumour' concern

According to a report in the Stock Journal, livestock producers are becoming increasingly concerned they may be forced to pay for the registration of property identification codes (PIC).

While the rumour is circulating at a rate of knots, PIRSA has not confirmed or denied the claims, saying only that an agreement for implementation of a payment had been agreed several years ago.

SA Farmers Federation livestock executive chairman Andrew Ogilvie says he has also heard that farmers could be charged to register a PIC and says if it does happen SAFF will "lobby vigorously against it".

While farmers contacted by the paper had no recollection of any previous agreement for the introduction of charges, a PIRSA spokesperson says livestock industries agreed in 2003 to the introduction of cost-recovery for the allocation of PICs.

BJD change confuses farmers

Changes made to the Bovine Johnes Disease (BJD) testing rules in March have created some confusion in the cattle industry and left dairy farmers in particular concerned with cattle purchased interstate says Stock Journal.

Early last year the SA government introduced compulsory BJD testing of all dairy cattle travelling into SA from other states - but that is a requirement which has since been abolished.

However, the paper says that now testing and management subsidies will still be made available to assist producers in that testing process - for a requirement which in theory no longer exists.

But PIRSA BJD coordinator Jeremy Rogers says the rule was not dropped - just ignored by so many it became hard to enforce. He says while the majority of SA herds have been tested, and are not infected, the control was causing a lot of angst with Victorian producers wanting to sell cattle into the State.

Award-winning Hopkins River Beef bound for SA

Adelaide's fine diners will be able to indulge in award-winning Hopkins River Beef according to the Stock Journal with the brand launching its first primal cuts into the SA market last week.

Hopkins River Beef director Adam North says about 15,000 cattle - mostly Angus - are marketed through the brand each year as either yearling grassfed product or finished in the feedlot for 110 days on almond hulls and assorted grains.

The brand was launched more than a decade ago by the Maconochie family at Dunkeld, in Western Victoria, and in 2008 it took out the grainfed class in The Age's Epicurean Battle of the Beef Eaters competition.

The paper says Hopkins River Beef is now used by about 200 of Victoria's leading restaurants, including Jacques Reymond Restaurant, Grossi Florentino and Pearl in Melbourne - and The Royal Mail Hotel in Dunkeld.

Healthy soils, top cattle

Hillcrest Pastoral Company business manager Bruce Creek is keen to test the theory "you are what you eat", or, says Stock Journal, a "healthier soil will produce healthier pastures and healthier animals".

If the first year's results of a three-year trial on his South-East property, comparing biological and conventional fertilisers, are anything to go by, he may have found the answer to a more sustainable grazing system.

The biologically-treated paddocks had a noticeably longer growing season than the neighbouring paddocks, treated with 100 kilograms per hectare of single super and grew higher-quality pasture.

Importantly, Bruce says during a 53-day trial last spring, steers grazing the biological paddock had an extra 244 grams a day weight gain than the neighbouring conventionally treated paddock - and both were stocked at 17DSE per hectare.

Late weaners need twice the food

Delayed weaning programs can negatively impact on the potential feed efficiency of beef cattle once they are moved into a feedlot situation according to a report in the Stock Journal.

And the paper says that according to veterinarian and Livestock Central director Rick White, cattle weaned late require nearly twice the amount of feed and also have poor milk production.

Speaking to producers at the recent Meat and livestock Australia Southern Meat Profit Day, White told them that weaning 50 days earlier than usual can save them about $18 a head.

White says premium returns are available when preparing cattle for a feedlot and producers need to recognise that backgrounder or feedlot customers want properly weaned and socialised animals.

Make plans on indicators

Market indicators provide a wealth of information for producers to make better informed decisions says Stock and Land but the problem is understanding what is available and converting it to make better informed trading decisions.

That was the message from producer Charlie Goode, Silverton Partnership, Naracoorte, SA and consultants delivered to participants at the recent MLA Southern Meat Profit Day.

They say indicators provided by the National Livestock Reporting Service - their quality, depth and complexity - are incredibly valuable and data provided enables producers to run their farms as a business - if they successfully sift the information.

But by monitoring and measuring their current situation with their historical performances, producers could better predict their future and make genuinely educated management decisions.

MLA UPDATE

Beef trade as usual in Japan despite FMD

21/05/2010

Japan's Ministry of Agriculture, Forestry and Fisheries has reported the 159th case of the foot-and-mouth disease (FMD) in the current outbreak, all confined to the Miyazaki prefecture (located in Kyushu region, southern Japan). The government's FMD Countermeasures Headquarters advised the local administration to slaughter cattle and pigs within a 10km radius of the movement restricted areas.

The government also announced that it will provide financial support to farms that were impacted by the outbreak. Over 110,000 animals were already slaughtered or scheduled to be culled (as of 17 May), according to Chikusan Nippo.

Despite the increasing number of cases, there has been no visible impact to meat consumption in Japan so far. Retailers and foodservice outlets continue to sell beef, while the wholesale market has been trading as usual. The Japanese domestic carcase and wholesale beef prices have been stable, but the trade is monitoring the situation very closely.

Beef exports from Japan remain suspended, with exceptions of Hong Kong and Macau.

The fall in the A$ assisted to lift interest in Australian beef among buyers this week, with export prices to Japan easing across the board in US$ terms, due to both the depreciated currency and seasonally weak underlying demand.

A$ caught in European financial gloom

21/05/2010

The A$ has experienced one of its most turbulent weeks since the global financial collapse during the second half of 2008, as debt and financial concerns gathered pace throughout Europe. After starting May at over 92US¢, the A$ traded below 81US¢ by Friday - a drop of over 12%

Adding to the sell-off of the A$ throughout the week was a fall in Australian's consumer confidence during April, and other negative domestic economic indicators, which look to have significantly altered the forecast for further interest rate rises in 2010. The close A$ correlation to China growth, the mining sector and commodity prices, has seen it fall against almost all major currencies since the latest global financial shock. Since the start of May, the A$ has fallen over 15% against the Japanese yen, 7% against the Korean won, and 10% against the Indonesian rupiah.

In terms of the impact for the Australian red meat exports, while a lower A$ is very welcome, significant movement (either up or down) can result in buyer hesitancy in committing to forward orders. In 2008, when the A$ plunged from 98US¢ in late July, to 61US¢ by late October, a fall of 37%, trading became difficult for Australian exporters.

While it is still far too early to determine the overall impact of the recent decline in the A$, it can be assumed that Australian exporters would be more than happy to see the A$ remain lower - just without the extreme volatility of the past week.

Argentinean beef production curtailed

21/05/2010

Argentinean beef production during the March quarter dropped 19% year-on-year, to 644,879 tonnes cwt.

The decrease was mainly the result of the fall in grown cattle supplies since December. Additionally, the tightening in export restrictions by the government has hastened the closure of several export plants.

Beef production in Argentina also decreased during the March quarter in 2008 - the result of a general agricultural strike, as the industry protested against export tax rises and the government's interventions and controls in agricultural industries.

However, in 2009 production increased during the period, as a severe drought and the ongoing liquidation induced higher cattle marketings, as producers switched to other more profitable and less government-controlled agricultural enterprises.

The current fall in production has resulted in an 18% fall in average beef consumption to 56.5kg/per capita a year (CICCRA).

According to the Argentinean Beef Industry Association, the domestic market has been affected to a higher extent, as exports decreased by a lower percentage than total production during the period.

Season deteriorating quickly

21/05/2010

Large parts of the pastoral regions stretching from southern Queensland to Victoria, SA and WA are in urgent need of widespread rain, following a generally dry April and May and the onset of wintery conditions. While too late to assist pastures in many areas, crops need rain to keep growing.

The poorer conditions are forcing more cattle to market, and overall quality is dropping, leading to lower average prices. The strong export demand from cows and fall in the A$ is helping to hold cow prices close to their recent higher levels, despite increased numbers coming forward. However, prices for Japan ox continue to slip, with demand remaining seasonally poor in Japan, and any benefit from the A$ fall being rapidly eroded by imported beef price declines.

Despite continued lower year-on-year numbers and a fall in the A$, lamb prices slipped this week - by 1% for heavy lambs and 3% for trade and light lambs. The tight supplies of Merino lambs and continued strong restocker demand saw this category buck the trend, rising 2% to be almost 20% above last year.

Despite this week's declines, all lamb values remain at or near record levels, with further price rises anticipated this winter. Similarly, despite a 12¢ decline this week, mutton prices remain very high, testament to the strength of Middle East and restocker demand and the historically small flock.

Reduced numbers at Narromine

21/05/2010

Numbers were again hard to find at Narromine, with the yarding the smallest for many years. There were only a few pens of young cross bred ewes yarded, and only the one pen of young Merino ewes.

There was a fair selection of mixed age and older Merino ewes, mostly scanned in lamb. There was a single line of young Dohne Merino cross ewes and similarly just the one pen of wethers. Despite the smaller yarding, there was a reasonable crowd on hand, with strong competition in all categories. Buyers attended from Oberon, Orange, Gilgandra, Condobolin and Forbes, with strong support from locals.

The first cross ewe market was very solid. The best of the one year olds, which were March shorn, sold for $158/head. The balance of the one year olds sold from $110 for smaller ewes lacking condition, through to $147/head for good quality. A line of two and three year old ewes scanned in lamb sold for a market top of $170/head. Two pens of store lambs achieved $68 and $80/head.

Merino ewes also sold to strong competition. A pen of young ewes May 2009 drops, April shorn sold for $116/head. The best of the Merino ewes were a line of three to six year olds, 100% scanned in lamb to Poll Dorset rams, which sold for $145/head. A line of mixed age plain condition ewes and only 50% scanned in lamb sold for $82/head. The balance of the older Merino ewes mostly scanned in lamb sold from $104 to $131/head. There were some exceptional sales, with six year olds achieving $126 and five year olds selling to $131/head. There was a large line of 865, five and six year old ewes passed in. Buyers did not operate on these particular sheep due to a heavy burr infestation. A single pen of Merino Dohne cross ewes which were one and a half year olds, April shorn sold for $100/head.

The single pen of wethers was August and September 2009 drop, March shorn, sold for $75/head.

Steady Korean beef demand in 'family month'

21/05/2010

Australian beef exporters reported another solid week, as there has been steady Korean beef demand and enquiries. The month of May in Korea is known as ‘family month', with celebrations on official public holidays such as ‘children's day' and ‘Buddha's day' usually lifting overall beef consumption.

This week, wholesale prices for Australian and US short ribs increased again on last week. Beef traders in Australia confirmed that demand for Australian short ribs remains solid.

The wholesale price for a Hanwoo (domestic) carcase in Korea dropped for the fifth consecutive week as suspected cases of cattle infected with foot-and-mouth disease continue to come forward.

US buyers increasingly cautious

21/05/2010

The volatility in currency markets, and especially the A$, over the past week has seen many US buyers become increasingly cautious, with concerns remaining about the ability of US end users to absorb higher meat prices. US import beef prices were lower across all manufacturing items this week, with 90CL prices slipping back for the fourth consecutive week, down 3¢, to 163US¢/lb - but still 26% above the same period last year.

While the drop in the A$ more than offset the lower US prices for Australian exporters for the past week, buying is likely to remain tentative until some stability returns to the currency. However, the much higher prices year-on-year is starting to slowly see more Australian product sent to the market, after a very slow start to the year - with 11,900 tonnes sent to 17 May, around 30% higher than the April shipment rate.

Unseasonable north west rain

21/05/2010

Most of south eastern Australia experienced another dry week, as the north western region of Australia recorded an unseasonable May dump, with in excess of 100mm recorded across parts. While some good falls were experienced across parts of southern WA, the agricultural regions are still desperately waiting for season breaking rains. Widespread falls are forecast for much of the country in the coming week, including for WA.

Butcher sales stronger in April

20/05/2010

Butcher sales of all meat types were notably stronger in April compared with the previous month and remained steady (for lamb) to higher (for beef, pork and chicken) on a year ago. During the month, beef, lamb and pork prices averaged above April last year, while chicken prices were lower to steady compared with 12 months earlier, according to the latest MLA's butcher survey carried out by Millward Brown's National Field Services.

The upturn in sales during the past four months may indicate a regain in butcher popularity, as more consumers shop for fresh meat at local butcher shops. Beef sales at butchers were stronger in April, with 53% of respondents indicating ‘very good to excellent' sales, up from 46% in April 2009. Sales of lamb during April were firm year-on-year, as 43% of butchers mentioned ‘very good to excellent' turnovers.

Of the 100 butchers surveyed in April, 40% reported ‘very good to excellent' sales for pork compared with 31% in April last year. About 54% of respondents noted ‘very good to excellent' sales of chicken in April, a rise from 44% during the same time last year.

Argentinean beef production curtailed

20/05/2010

Argentinean beef production during the March quarter dropped 19% year-on-year, to 644,879 tonnes cwt.

The decrease was mainly the result of the fall in grown cattle supplies since December. Additionally, the tightening in export restrictions by the government has hastened the closure of several export plants.

Beef production in Argentina also decreased during the March quarter in 2008 - the result of a general agricultural strike, as the industry protested against export tax rises and the government's interventions and controls along agricultural industries.

However, in 2009 production increased during the period, as a severe drought and the ongoing liquidation induced higher cattle marketings, as producers switched to other more profitable and less government-controlled agricultural enterprises.

The current fall in production has resulted in an 18% fall in average beef consumption to 56.5kg/per capita a year (CICCRA).

According to the Argentinean Beef Industry Association, the domestic market has been affected to a higher extent, as exports decreased by a lower percentage than total production during the period.

What are the largest cattle and sheep regions in Australia

20/05/2010

Recent data released by the Australian Bureau of Statistics (ABS) profiled Australia's cattle herd and sheep flock by natural Resource Management Region (NRM) as at June 30 2009, and reinforced Queensland's dominance of the cattle herd. According to the ABS, the Australia cattle herd increased 2% in 2008-09, to 27.9 million head, while the national sheep flock declined 5.4%, to 72.7 million head.

Despite a 9% contraction in the Fitzroy NRM regions (surrounding Rockhampton) cattle herd to the year ending June 30 2009, its held onto its title as Australia's largest cattle region, with 2.6 million head. The influence of drought, flooding and cattle movements throughout the year saw movement in the ranking of next largest regions, with the Burdekin in Queensland jumping from fourth in 2008 to second as at June 2009, with 1.7 million head. The NT (no NRM classifications) fell one position to third in 2009, with 1.68 million head, followed by the Southern Gulf (1.5 million) and Desert Chanel regions of Queensland (1.4 million).

For WA, the Rangelands NRM, which takes in almost 90% of WA and 1.85 million square km had the most cattle, at 1.07 million head.

For the southern states, the largest cattle region in NSW was the Namoi NRM region (centred on Gunnedah), just ahead of the Northern Rivers, with 896,615 head, while the largest region in Victoria was the Glenelg Hopkins region (Hamilton), with 911,903 head. For South Australia, the South-East NRM had the most cattle, with 708,197 head, while in Tasmania; the North West recorded the most cattle, with 319,901 head.

For the sheep flock, the Glenelg Hopkins region of South West Victoria maintained its position as Australia's region with the largest number of sheep despite contracting 12% year-on-year, to 5.9 million head. The Lachlan (5.5 million), Central West (5.35 million) and Murrumbidgee (5 million) NRM regions of NSW were the next largest flocks by region, closely followed by three regions in WA, including the South West (4.8 million), Avon (4.5 million) and South Coast (3.6 million).

The ongoing decline in the WA sheep flock is best seen in the south west NRM region, which fell 22%, or 1.3 million head, for the year ending June 30 2009, to 4.8 million head - taking it from the nation's second largest flock by NRM 2008, to fifth in 2009.

Australian grainfed exports up in 2010

20/05/2010

Australia exported 68,018 tonnes swt of grainfed beef during the first four months of 2010, up 7% year-on-year, as feedlot turnoff increased throughout the first quarter (DAFF, ALFA/MLA).

Over the same four month period, Australian grassfed beef exports declined 17% year-on-year, to 195,104 tonnes swt, as heavy rain brought flooding and transport disruptions to large regions of Queensland and northern NSW. With the reduced grassfed cattle turnoff, total adult cattle slaughter for March quarter declined 6% nationally, which contributed to a 12% decline in exports for the same period, totalling 263,122 tonnes swt.

Shipments to Australia's largest grainfed market, Japan, declined 4% year-on-year, to 47,222 tonnes swt. Grainfed beef prices to Japan came under increasing pressure throughout the period, with the premium between grainfed beef, and cheaper grassfed beef, narrowing to their smallest margin in many years. With the reduced returns, Australian exporters looked towards other markets, with shipments to Korea lifting 48% year-on-year, to 10,837 tonnes swt, along with an 8% rise to the US, to 4,520 tonnes swt.

Grainfed exports also continue to expand to developing markets, where consumers preference for, and ability to pay for the premium product, continues to increase. Shipments grew 106% year-on-year to China, 60% to South East Asia and 215% to the Middle East, although total volumes still remain comparatively low.

Grainfed beef shipments accounted for 26% of all beef exports between January and April, up from 21% a year earlier.

Korea delivers strong returns for Australian beef industry

20/05/2010

In the first quarter this year, the value of Australian beef and veal exports dropped 25% year-on-year, largely due to lower exports and the significantly stronger A$, with declines in export value to major markets like the US (-52%) and Japan (-22%). However, the export value for the Korean market increased 5% during that same period (Global Trade Atlas).

Export value of Australian beef and veal to Korea totalled A$121,512 for the March quarter, compared with A$115,470 in 2009. The value of frozen beef dropped 5%, while chilled beef increased 22%.

Returns on chilled carcase remained unchanged for the quarter, while the value of chilled bone-in cuts dropped 6% year-on-year. The main driver behind the surge of export value to Korea during the March quarter was an increase in Australian boneless beef, which lifted 24% year-on-year.

Roma Saleyards battle moves to Brisbane

A last-ditch bid to build a second set of saleyards for Roma is now being staged in Brisbane's Planning and Environment Court according to a report in the Queensland Country Life.

Nine days have been allocated for the hearing, which traces its origins back to December 2007 when David and Suzanne Bassingthwaighte filed an appeal against a Roma Town Council decision to refuse their development application for a 40-hectare cattle saleyard on the Warrego Highway.

Maranoa Regional Council, which owns the existing saleyards at Roma, was required by law to take on the responsibility for seeing the case through after amalgamation created the new local government body.

The paper says that the protracted legal battle - which will see council, the Department of Main Roads and 12 local residents parties to the appeal - has accrued more than $200,000 in legal costs for the council.

Struggle to meet meat criteria

For a year or two Australia may only be able to supply about 3000 tonnes of its lucrative new 20,000 tonne EU annual quota for premium grainfed young cattle says Queensland Country Life - and it seems the US is having trouble too.

For Australian suppliers, the issue will be finding young EU-accredited cattle to go onto feed, rather than turned off grass at heavier weights to meet the long-standing EU Hilton quota for grassfed product.

MLA Europe regional manager David Jones says industry sources are telling him that cattle supply, and the complexity of negotiating access to the new quota, are likely to constrain Australia's ability to supply the quota to around 3000 tonnes for at least one year, and maybe another year beyond that.

While the US was instrumental in designing the new quota, to overcome an EU-US trade dispute over the use of HGPs, according to the paper it is also having trouble meeting supply, with only one or two suppliers currently meeting targets.

First nibbles for EU quota

According to a national Rural Press report, in his coolrooms on the outskirts of Antwerp, Belgian meat importer Paul van den Meutter is casting a critical eye over a shipment of Australian beef.

What he sees tells him what he already knew - making profitable use of the new beef import quota announced earlier this year by the EU is not going to be straightforward despite bringing beef in under the quota avoids the 20 pc import duty imposed on all other EU beef shipments.

The container-load of mostly premium cuts was specially ordered by van den Meutter, who contract manages Vestey Foods meat import business in the Belgium-Luxembourg region, to test the viability of the quota.

He says his business targets the high end of the market and told Rural Press that the Australian shipment he received confirmed that 100 days of feeding falls well short of producing the type of beef he wants to sell.

US appetite grows for EU grainfed export

Major export competitor the US is responding to the emerging opportunity to supply high-quality grainfed beef to the EU market with shipments in the first quarter of 2010 up 125 pc on the same period last year says Queensland Country Life.

The new EU grainfed quota - which came into effect for Americans in August last year and Australians in January this year - allows for 20,000 tonnes of high-quality beef to be exported to EU countries each year at zero terrif.

The US Meat Export Federation says it is creating expanded opportunities for North American beef producers and to March 31 American producers had licence allocations for 2525 tonnes.

In addition to being offered in high-end restaurants as series of US promotions are helping its beef gain a foothold in European supermarkets, particularly Carrefour in Italy and Luxembourg.

McGauchie heads AACo board

According to Queensland Country Life, former Telstra chairman and National Farmers Federation president Don McGauchie has been appointed new chairman of the embattled Australian Agricultural Company.

McGauchie, who becomes the company's fifth chairman in the past two years, owns sheep and grain interests in northern Victoria. He starts his new role after AACo's AGM next month where his confirmation will be sought from shareholders.

His election follows the recent resignation of former chairman Stephen Lonie, and fellow North Queensland cattleman Peter Hughes, who served only 12 months on the AACo board.

McGauchie says he has been fully briefed on the strategic review at AACo, including new initiatives in cattle marketing, breeding and processing programs and says he "fully supports the strategic direction the company is taking".

Low-fat heifers cost producers $30/ha

Queensland Country Life says selecting for low-fat EBVs to boost yield has been found to negatively affect conception rates in maiden heifers by up to nine pc according to results from the Beef CRC maternal productivity project.

Work from the beef technologies unit reports that this potential loss of efficiency can add up to as much as $30 per hectare for the heifer component of a cow-calf enterprise, and up to $6 per hectare for the overall herd.

Program director Wayne Pitchford says research addresses industry concerns genetically influencing body composition by selecting for attributes such as improved feed efficiency or increased yield will negatively impact on maternal productivity.

The paper says that the project still needs to determine whether the project still needs to determine whether the differences in conception rates persist when the cows have calves at foot.

Cargill backs value-based plan

Thirteen years after the beef industry first showed interest in value-based payment systems, factoring meat yield into the carcase price equation, Stock Journal says major southern processor Cargill Australia looks set to implement such a program.

Supermarket retailer Woolworths tested a value-based marketing system with selected cattle suppliers in its northern supply chain during 1997, based on yield predictions made using VIAscan video imaging technology.

However, the paper says that it failed to take the program to full commercial rollout, due largely to a shift in support because of changes in the company's senior management at the time.

Cargill has been examining value-based buying at its Wagga production facility for the past two or three years, applying a combination of whole-carcase and chiller assessment camera VIAscan technology - with the new program going "live" from May 17 with grainfed suppliers getting data outlines.

DNA test pushes the boundaries

The beef industry's ability to identify high-performing seedstock has made another quantum leap says Stock Journal, with Pfizer's official launch at the National Angus Conference in Wodonga of its high-density 50,000-marker DNA selection tool.

Illustrating the breakneck pace of progress being made in the global genomics industry, Pfizer's new test replaces a 56-marker panel released just 15 months ago - almost a thousandfold expansion over the earlier technology.

The paper says at this point the new high-density 50K-marker test is released for use within Angus cattle only although plans are in place to extend it into other Bos Taurus and Indicus breeds as further research is carried out.

Pfizer Animal Genetics senior research and development director Gerard Davis says the new HD 50K test offers early identification of those calves with potential to become superior performers and allow users to make better decisions.

Pacific resort industry offers beef opportunities

Smaller export market destinations built around the holiday resort industry of the Pacific Rim can provide valuable second-tier opportunities for Australian beef exporters says Queensland Country Life.

However, suppliers must be prepared to heavily commit to servicing the sometimes challenging customer countries, which the paper says often have access and cold-chain limitations.

That is the experience of niche-scale beef exporter Mike Murray, who provided a colourful account of his experiences servicing markets such as Sri Lanka and the Maldives, during the recent Angus National Conference.

After a lot of hard work his company Prestige Foods now services 25 high-end resorts in the island chain, all rated in the five to seven-star categories and which are taking up to $25 million worth of good annually.

China's red meat hunger

According to The Land an increasingly meat-hungry China could eventually become a significant market for Australian beef and sheepmeat but a Rabobank report says initial growth will be slow.

The report, by Rabobank senior analyst Wendy Voss, says China has become the world's largest market for meat, and that demand is now expected to continue rising over the next 10 years.

Voss told the paper that China's massive population, surging income and rapid urbanisation and westernisation, are resulting in it becoming a giant consumer of a range of agricultural products.

But she warns China is not going to be "another Japan", at least not until the next decade, and that Australia is "certainly not in the driving seat" facing a lot of global competition, particularly from North and South America.

Tubbo sold in local mega-deal

Tubbo Station, the iconic Riverina flagship property of the Four Arrows Group, has been sold to a local farming family which is planning to gear up its livestock production according to The Land.

The paper says that the 28,170 hectare Darlington Point property has been purchased privately by Gai and Les Douglas and their family, who are in the process of selling their nearby Kerarbury holding.

News of the sale - the biggest for years in NSW in terms of value - was released by Chris Meares, principal of the Sydney-based Meares and Associates, which has been handling the Four Arrows selldown.

While no price has been disclosed, with its entitlements of more than 30,000 megalitres of water involved, and 3000 hectares of laser-levelled irrigation country, it is believed to have sold upwards of $50 million.

Action urged on FMD

Disease, environmental, and social concerns associated with the world's burgeoning livestock population are not being appropriately addressed by political leaders according to a report in The Land.

The paper says that world animal health exper6t Dr Keith Sumption says these major livestock issues now need "urgent" from a united voice and need to be aware of all sizes of agricultural production.

Sumption, the European Commission secretary for the Food Agriculture Organisation (FAO) of the United Nations, says policy makers need to support small-scale famers as the world's livestock production moves to large-scale commercial holdings to limit production, social environmental and disease factors - particularly foot and mouth.

He says control of FMD could be integral for exporting countries, but it cut across health and environmental agendas because enhanced control of the disease will lead to increased food production and more efficient use of water and feed resources.

Feeding the world vital future issue

Julian Cribb became alarmed at the lack of attention paid to food security when it was reported the global population could reach, or exceed, 11.4 billion by the mid 2060s according to a report in Stock Journal.

The editor and principal of specialist science and commentary firm Julian Cribb and Associates, his portfolio of 8000 articles, 2500 media releases and eight books boast commentary littered with the need to confront what he deems a shortage that if not addressed will lead to "profound consequences.

Most recently, the paper says that Professor Cribb made a final plea with the release of his latest book - The coming famine: The global food crisis and what we can do to avoid it. 

Cribb told a recent Melbourne University forum that "the central issue in the coming half century is not climate change, or the global financial crisis. It is whether humanity can achieve and sustain such an enormous harvest."

Yard compliance will lift fees

Stock and Land reports council-owned saleyards across southwest Victoria might have to meet National Competition Policy guidelines if a private operator establishes yards at Garvoc according to two southwest council chief executive officers.

The paper quotes Warrnambool City Council chief executive officer Bruce Branson as claiming if that is the case yard dues would "most likely" have to rise at the Warrnambool saleyards.

After losing a battle to close the saleyards at Warrnambool so it would establish a facility at Cudgee, VLE Limited has claimed it will go ahead with plans to build at Garvoc, just west of Camperdown, beside the Princes Highway.

Corangamite CEO Paul Younis says council-owned yards at Warrnambool and Camperdown would have to meet NCP guidelines if the Garvoc yards go ahead, forcing council to take a new business pricing model in setting fees.

Meat Profit Day targets producers

Ken Solly held a mirror up to the audience at the recent MLA Southern Meat Profit Day says Stock and Land, asking the participants "what is the number one profit driver of your business?"

And his answer, delivered after a dramatic pause, was: "You". The paper says that Solly's workshop message was simple and to the point: "Get the people part right and production will follow".

Solly told the audience that far too often Australian producers farmed their enterprises via tradition, and continually failed to make better use of the resources and information available to them.

He says the most profitable production systems are those where the producers readily adapt new technologies, understand their production systems and plan, monitor and analyse their business decisions.

MLA UPDATE

Cattle market wrap

14/05/2010

Quality holds prices

National cattle throughput at MLA's NLRS reported saleyards increased this week, up 4%, with a 30% increase in Queensland partly offset by a smaller yarding in NSW.

The larger yardings in Queensland was primarily the result of the resumption of the Toowoomba sales on Monday after a two week selling break. Fair numbers were bought forward after a run of public holidays, with 989 head yarded at the Elders sale and 680 by Landmark. There was also a large increase in offerings at Dalby, with some lines beginning to show the signs of the cooler conditions, while at the Roma store sale around 35% more cattle were penned.

There was a 5% fall in numbers presented across NSW compared to last week's offerings. Tamworth had a reduction in throughput by over 1,000 head, with numbers at Inverell down 32%. In contrast, yardings at Casino returned to over 2,000 head, while Gunnedah had around 3,000 cattle offered with cows making up almost a third of the sale.

The arrival of colder weather and frosts has resulted in the overall quality of most cattle becoming plainer. However, there have been some reports of an increase in quality across some centres compared to last week, with producers possibly holding onto their better quality runs in order to put extra finish on them before winter really takes hold. The higher prices may also be a factor in drawing out a few more quality cattle this week.

Quality was a factor in prices this week, with better quality lots benefiting from extra competition as plainer lines experienced an easing in prices. Trade buyers were keen to secure C muscled vealer steers and the strong competition drove prices up 4.4¢ on last week, to average 185¢/kg lwt. Both yearling steers and heifers to slaughter were also dearer, averaging gains of 3.6¢ and 2¢/kg respectively.

Restockers and feeders were also prepared to pay more for better muscled young cattle. Vealers going back to the paddock achieved averages up to 6¢ more than last week, although D muscled lots were not subject to the same demand, averaging around 8¢/kg less.

Grown cattle prices strong

While some grown cattle categories struggled to maintain last week's gains, prices generally remained strong this week on the back of competition between export processors and restockers.

Despite an increase in the number of lightweight cows yarded, the average price rose 3¢ on last week, as restockers paid up to 141¢/kg lwt in Victoria. A 9% fall in the number of heavy cows penned saw spirited bidding by processors securing lots suitable for grinding. At Pakenham on Tuesday a run of heavyweight C4 cows sold around 160¢/kg lwt.

There was a 12% increase in grown steers yarded for the week, with around 700 more yarded in NSW. The increase meant most values slipped slightly. Heavyweights to slaughter sold for around 1¢ cheaper, at an average of 167¢, while bullock prices fell by up to 4¢, to average 170¢/kg lwt.

Even with mixed price trends at physical markets, the eastern states Japan ox indicator remained 2¢ above last week at 178¢/kg lwt. The US cow indicator settled at 133¢, to be 1¢/kg dearer.

Dry start to May

14/05/2010

After a very dry start to May, producers in the eastern states are awaiting further falls to consolidate widespread winter plantings. The situation continues to become increasingly dire in WA, with the very dry autumn so far limiting pasture growth and holding back cropping activity. The forecast for the week ahead has unseasonable rain across northern Australia, the prospect of good falls in the east, but WA croppers are likely to miss out again.

Manufacturing market driving cattle prices

14/05/2010

Cattle markets were generally firm this week, consolidating last week's gains, despite a rise in numbers yarded. This strength, despite a drier period, comes principally from a surge in global prices for manufacturing beef and cheaper frozen cuts.

Since its low point last October, the price of 90CL cow beef to the US has risen almost 40% in A$ terms, driven by a general lift in cattle and beef prices in the US, Russia's re-entry and weaker competition from South America. Over the same period, export cow prices in Australia have only lifted 11%, restoring export margins on this grade of product. Some recovery in hide prices has also assisted margins.

However, processor/exporter margins on the quality beef trades remain depressed, with the export price for chilled grassfed fullsets to Japan only 3% higher than a year ago, while Japan ox prices have risen 11% over the same period - squeezing export margins further.

The feature in markets this week was a further strong rise in prices for lambs and mutton sheep values. Very low sheep numbers, grazier interest in ewes for rebuilding and strong Middle East live sheep and mutton demand saw the national mutton indicator reach a record 393¢/kg cwt, up 23¢ for the week and 55% on last year.

Lamb values have risen amid continued strong demand and fears of seasonally tighter supplies over the coming winter months.

Japan beef consumption up 3% in March

13/05/2010

Beef consumption in Japan increased 3% year-on-year to 73,275 tonnes (boneless equivalent) during March (supply and demand data by Japan's Agriculture and Livestock Industries Corporation). Imported beef largely contributed to the growth, adding 14% on last year to 45,737 tonnes.

Beef demand was reportedly strong from the Japanese fast food sector (volume users of Australian beef) in March, while beef purchases by households showed a 4% increase from the previous year (Ministry of Internal Affairs and Communications of Japan, MIC). It is estimated that approximately 60% of beef sold at retail is Australian.

While beef consumption volumes were relatively firm in March, consumers' strong focus on lower value items - at both foodservice and retail - has still been a concern for the Japanese trade. The same MIC data revealed a 5% fall in household beef expenditure, indicating the ongoing deflationary economy in the market and cautious spending by consumers.

Beef consumption during the March quarter totalled 202,860 tonnes, up 3% from the previous year, but still 7% below 2003's level (prior to the BSE outbreak in the US).

Australia's retail trade improves in March

13/05/2010

Australia's seasonally adjusted retail turnover in March increased 1.2% compared with the same time last year, totalling A$19.9 billion. According to the latest Australian Bureau of Statistics Retail Trade report (6 May), total retail sales were unchanged compared with February.

March sales in the food retailing industry were stable compared with the previous month and were 1% above March 2009, registering A$7.9 billion.

Sales at cafés, restaurants and take away foodservice in March rose 12% compared with March 2009, reflecting strong growth following the trend set last year. Compared with February, sales in this sub-sector increased 1%, to A$2.6 billion in March.

During the March quarter 2010, seasonally adjusted total retail sales improved 2% compared with the same period last year, to A$57.4 billion, including a 0.4% rise in food retailing turnover (A$22.2 billion) and a 7.5% sales increase (A$7.0 billion) for cafés, restaurants and take away foodservice.

Record US corn harvest forecast for 2010-11

13/05/2010

The forecast for another record US corn harvest in 2010-11 is expected to maintain downwards pressure upon prices, according to the USDA's latest World Agricultural Supply & Demand Estimates. The 2% increase in corn production, to 13.4 billion bushels, should more than account for a projected lift in corn usage, with end of year stockpiles expected to rise 5%, to 1.8 billion bushels.

Consumption by the US ethanol industry is tipped to rise 5% in 2010-11, to 4.6 billion bushels, with rising federal mandates on biofuels and significant blending incentives for fuel producers.

Conversely, US feed grain demand is projected to fall slightly for 2010-11, to 5.35 billion bushels, in line with the expected slow recovery in cattle on feed and increasing use of alternate feedstuffs.

Increasing world corn production is likely to maintain pressure upon global and domestic prices. Delivered Sydney prices for feed barley, wheat and sorghum are currently averaging $194/tonne, $215/tonne and $197/tonne respectively - 20%, 21% and 15% cheaper than a year earlier (The Land).

However, Australian sorghum production this year is forecast 52% lower than in 2008-09 and many producers are reportedly favouring rotation crops such as legumes and oilseeds this winter, in response to poorer prices on offer for wheat and barley (ABARE). If this results in tighter feed grain supplies, it should help constrain any further downside price movements.

Coproduct prices improve in April

13/05/2010

Potential co-product values for a grassfed heavy steer (300-420kg cwt) averaged $169.88/head in April, 12% higher than a year earlier, but lower than the five-year average for April - $184/head.

Returns on offal over the month were back 11% against the previous year to an average of $55.28/head. Beef offal values continue to be hamstrung by the high A$ - 31% higher year-on-year in April at 93US¢ (Infoscan) - as well as subdued demand in a number of export markets.

Tallow values rose slightly in April, improving 5% year-on-year to average $41.14/head. Tallow prices have improved in recent months due to tighter supplies on the back of reduced cattle slaughter (back 5% in the first quarter of 2010), and its attractive price relative to palm oil (a substitute product).

Returns to other rendered products, such as meat and bone meal and bloodmeal, declined 17% over the year to $28.31/head. Meat and bone meal prices fell mainly as a result of increased availability of cheaper US product, and cheaper soymeal, which tend to compete for the same feed mill demand.

In contrast, hide values improved drastically over the year, and contributed to most of the per head increase in co-product values in that time. On average, hides contributed $45.15/head in April, 176% more than a year earlier when hide prices - one of many casualties of the global financial crisis - plummeted to lows. Since then, hide prices have continued to improve, buoyed by recovering demand and lower slaughter figures. However, the high A$ continues to keep a lid on hide prices.

Brazil beef exports down in April

13/05/2010

Brazilian beef exports during April fell 2% to 78,427 tonnes swt when compared with March and was 8% below April 2009, mainly the result of tight cattle supplies, dearer prices, and competition from the domestic market.

Exports to Russia recovered 20% month-on-month to 25,843 tonnes swt as a result of higher quotes in that market after the distribution of the remaining 75% of the import quota among local traders, improved economic stability and low stocks.

Exports to Iran, Brazil's second largest market decreased 14% in March to 15,093 tonnes swt, but remained 303% higher year-on-year, as high demand in this market is expected to remain throughout 2010.

Meanwhile, the Brazilian industry remains focused in opening new markets this year, with Turkey recently announcing the commencing of beef imports from Brazil. The Turkish government is yet to specify their import conditions, probably with import licences or quotas (Beefpoint).

US retail prices decline amid rising cattle and wholesale prices

13/05/2010

The US cattle and beef industry has seen a significant rise in livestock and wholesale beef prices in recent months. Contrary to the rising trend, USDA retail data indicate US beef retail prices have declined on average 2% for the first quarter of this year.

The increase in cattle and wholesale beef prices so far this year has been attributed to a year-on-year decline in US beef production during January and February, lower beef imports for the first quarter of this year, particularly from Australia, a progressive decline in US cattle on feed numbers for the past five months (December 09' to April 10'), an increase in total US beef exports and signs that US restaurant industry sales recovering.

US analysts and market participants are now questioning whether the market can sustain higher livestock and wholesale prices, or whether US retailers and foodservice operators will increase prices of meat items.

The USDA expects US cattle prices for 2010 to average 8% higher than last year, amid an expected 1% decline in beef production and a 9.7% increase in beef exports. Given this, US retailers and foodservice operators will unlikely sustain lower beef prices coming into a peak US demand period for beef, unless they continue to absorb the higher cost of rising wholesale beef prices into their margin.

High A$ hits Australian export beef returns

13/05/2010

Reflecting the combined impact of lower Australian beef exports and the sharp jump in the value of the A$, the value of Australian beef and veal exports for the first quarter of 2010 declined 25% year-on-year, at A$825 million (Global Trade Atlas). A significant decline in export values from the US and Japan during the first quarter made up the majority of the A$269 million decline in total export returns, along with a reduction to Indonesia, the EU, Taiwan and Canada.

Returns in the March quarter of 2009 were boosted by a much lower A$, averaging 66.4US¢, compared to 90.5US¢ for the first three months of 2010 - a year-on-year increase of 36%. Added to the constraining influence of the higher A$ on export returns, total shipments for the quarter declined 14% year-on-year, to 188,368 tonnes swt - largely due to a 46% decline to the US.

Export returns from the US declined 52% year-on-year for the March quarter, to only A$144 million FOB, the lowest start to a year since 1998. With US beef prices increasingly steady throughout April and early May, export returns and volumes are expected to improve during the second quarter.

Total beef and veal exports to Japan, Australia's most lucrative beef export market, declined 22% year-on-year, to A$375 million FOB - making up 45% of total returns for the quarter. For Japan, while the total volume of beef sent for the quarter increased 2% and some increase in export prices was recorded, the influence of a 31% appreciation in the A$ against the Japanese yen reduced returns to Australian exporters.

Returns from other markets for the quarter were mixed, with values to Korea increasing 8% year-on-year, to A$121million, while shipment values to Indonesia (A$32 million) and Taiwan (A$26 million) declined 27% and 8%, respectively.

Maccas gets ready to upsize

Burger giant McDonald's says signs of manufacturing beef supply shortage will not be holding back its strategy for a massive expansion of the fast food chain according to a report in The Land.

The company behind the explosion of the Angus beef product into the high-volume market is expanding its global operations - including a bold plan to more than double its number of outlets in China to 2000 in the next four years.

But the big question is whether it will be able to source enough beef as imported grinding beef prices in the US soar to record levels in the face of a rapidly declining domestic beef herd, reduced exports out of South America and extremely low rates of kill in Australia.

Elsewhere, the paper says that China's beef herd has shrunk from about 80 million head to just 60 million head during recent years as the country's breeding capacity has been turned into beef.

Feedlot numbers retreat

An increase in feedgrain and feeder cattle prices, the strong dollar and increased US competition in major markets have combined to deliver a 60,000-head decline in cattle on feed in Australian feedlots says The Land.

The quarterly feedlot industry survey for the period to March 31 has shown an eight pc drop in feedlot cattle numbers, with a small seasonal increase in feeding activity in southern states more than offset by Queensland's 10 pc fall and 12 pc in NSW.

However, Australian Lot Feeders Association president Jim Cudmore says the promising start to the winter cropping season and signs of recovery in some export markets provides some hope the untapped capacity within the industry will be more effectively utilised in the near future.

Feedlots on average were operating at 62 pc of capacity in March, down from 69 pc in December and MLA economist Tim McRae says total grainfed cattle turnoff for the March quarter was unusually high at 661,000 head - up 10 pc on December.

Senate smelling a rat

Fertiliser is not only more expensive than it should be according to a national Rural Press report, it may not even contain all the active ingredients it is supposed to a Senate inquiry has been told.

The Senate select committee on agriculture has resumed hearings into the state of the Australian fertiliser market after a provocative summer blowout in local fertiliser prices at the same time as world stocks were rising.

Farmers are arguing Australian prices for phosphate and urea based products are shrouded in mystery, largely because 74 pc of the wholesale trade is controlled by Incitec Pivot, which also dominates the local manufacturing sector.

Farmers from NSW's Junee district were also expected to tell the committee how tests on specific fertiliser deliveries last year apparently showed a 10 pc to 20 pc deficiency in the chemical analysis claimed on the label.

Wanted: 100,000 new workers

A report in The Land says forecast rural workforce shortages will hit the 100,000 mark in the next five years and there are calls for Canberra to introduce sweeping reforms in any new population policy to get more skilled and unskilled labour moving to regional areas.

In a just-released workforce paper, the National Farmers Federation says an extra 10,000 to 20,000 employees will be needed on farms or in the agricultural supply chain each year.

NFF says that leaves the farm sector potentially unable to capitalise on the recovery from drought because of such severe workforce shortages and its president David Crombie says the country's "economic engine room" is in danger of stalling.

Crombie says the global financial crisis and drought have masked a critical workforce deficit across regional Australia and recent solid rain, and the recovery it promises, threaten to drain the labour pool.

MLA on the hunt 

Meat and Livestock Australia is looking to appoint three independent directors to its board at this year's annual general meeting, according to a national Rural Press report, with applications now being accepted.

The report quotes MLA chairman Don Heatley as saying the company's board is seeking nominees from a wide range of areas of expertise who will then be subject to a thorough selection process. 

Heatley says the MLA board is skills-based, with experience and industry knowledge in both on- and off-farm production, research and development and marketing, with applications closing on May 21. 

"To maintain the balance of expertise on the board this year we are looking for candidates with skills and experience in one or more of the areas of southern beef, south-eastern lamb and northern beef production systems, and livestock exports and finance," Heatley says. 

More cash from beef herds in the north

CSIRO is close to producing new genetic tests aimed at improving the productivity of Australia's northern beef herd according to The Land, helping it to better meet increasing global demand for protein. 

The paper says that Australia's beef cattle industry, which produced a whopping $8 billion worth of meat product in the last financial year, stands out as the country's biggest farm export earner. 

Yet almost half of the nation's cattle herd grazes in Queensland, where most of the industry is reliant on Bos indicus and Bos indicus-crossed herds which often have poor reproductive rates relative to their Bos Taurus counterparts. 

CSIRO research scientist Rachel Hawken says the research aims to provide producers with DNA market tests to help them improve their genetic progress for two key traits - the age a heifer reaches puberty and the time it takes a cow to ovulate after calving. 

British rail success a wake-up call

Rail transport can, and will, win greater freight-carrying market share from road trucks - if it is properly managed - an ebullient English Lord recently told the Queensland Country Life. 

With a CV which looks like a massive overflow from Who's Who, Lord Tony Berkeley, the man who helped build the tunnel under the English Channel to link Britain and France, socked it to a Queensland Transport and Logistics Council lunch.

As chairman of the British Rail Freight Group, Lord Berkeley provided his Brisbane audience with tantalising food for thought, particularly to planners of the Queensland Rail privatisation and carve up which appears to be working from a different template to the one working so well in Britain and now the EU. 

Lord Berkeley says BRFG has lifted its national market share from eight pc to 12 pc and while not in itself a remarkable percentage he reminded listeners it represents a spectacular 50 pc increase in freight market share. 

Cattle drive to inspire Queensland unity 

Queensland Country Life says a major initiative to help preserve a key part of Queensland's cultural heritage - and showcase its great livestock industries - is being encapsulated in the Liberal National Party's Queensland Heritage Cattle Drive. 

This history-making event, which hit the road from Cloncurry at the weekend, has a nucleus herd of more than 200 cattle, and more will be purchased or donated along the way with numbers expected to top 2000 at the end of the 200-kilometre trip. 

The project is reminiscent of 22 years ago when the Australian Stockman's Hall of Fame at Longreach was launched with a massive community event which spanned the Outback and grabbed the imagination of Australians from all walks of life. 

The paper says as well as showcasing an important part of the Outback ethos, the project also presents a serious key message that the great stock routes which track the vastness of the State are under threat from the Labor government.  

Agricultural exports bounce back despite $A riding high

Despite an uncompetitively bullish Australian dollar, Stock Journal reports the first quarter of this calendar year has delivered the biggest rise in agricultural exports since March 2008 according to National Australia Bank. 

The bank's March quarterly agribusiness survey has revealed improved confidence across the board, following widespread rain in many parts of eastern Australia and increased demand boosting the outlook for post-farmgate agribusinesses. 

NAB's agribusiness general manager Khan Horne says both domestic and export demand has lifted and the increase in export sales is expected to continue, although slowly because of the high dollar and pace of global economic recovery. 

Horne says business conditions overall are expected to improve in the short-term, underpinned by an ongoing recovery in trading conditions and profitability for rural businesses following the seasonal turnaround.  

Young farmers need to lobby for their industry 

Australia's farm lobby boards are littered with grey-haired farmers, but AgForce cattle youth director Amelia Becker has told Rural Press it is time for young producers to stand up and ensure a smooth changeover. 

And Becker believes that there are many personal and professional benefits available for those members of the next generation of farmers who do get involved with their industry's future. 

The 27-yeaqr-old Brisbane based lawyer, who was raised on a beef cattle property in central Queensland, was one of two young beef enthusiasts elected to the newly created volunteer position at Queensland's peak farming lobby group. 

She says she stood for election to reconnect with her country roots but she has also gained a much greater awareness and appreciation of issues facing the beef industry, and greater knowledge along all parts of the production chain. 

ML99 lucerne leads meat gains 

Results from a liveweight gain trial held at Penfield, near Adelaide, have shown that beef cattle can put on up to 1.3 kilograms per day when offered certain lucerne varieties says Stock Journal. 

The 18-week trial showed Multileaf ML99 lucerne gave an average gain of 1.3 kilograms a day, followed by L91 at 1.1 kilograms a day and L56, which came in at 0.9 kilograms a day. 

But results for percentage of residual plants showed that L56 performed highest with 98.1 pc residual plants per square metre, followed by Q75 with 96 pc per square metre and ML99 at 95.9 pc. 

Seed Distributors spokesman Adam Davies says the trials looked at true animal-performance data and what can be an achievable weight gain actually produced in real-life situations and his company is now selecting and breeding lucerne and other forage plants for high-forage quality and animal voluntary intake. 

Landfall bulls top at $18,000 

Te Mania Infinity swept the pool at the recent Landfall Angus, Tasmania, sale, producing the top, and second top, priced bulls with a Victorian buyer paying $18,000 for an outstanding 20-month-old son says Stock and Land. 

The bull went to Dennis Ginn at Inverloch, Victoria, and weighing in at 806 kilograms offered an excellent set of figures, including +43, +88 and +103 for growth, +5.5 for eye muscle area and +1.8 for intra-muscular fat. 

The paper says that Echo Cottage, Campbell Town, Tasmania, also selected a Te Mania Infinity son, paying the second-top price of $9000 for the handy bull as well as selecting five stud heifers. 

The Landfall sale averaged $4375 for 88 bulls with 10 stud PTIC heifers averaging $2675 but commentators agree the Te Mania Infinity son, Landfall Infinity D66 was the pick of the catalogue for both phenotype and genotype. 

MLA UPDATE

US market trimming the fat

7/05/2010

The US imported manufacturing beef market this week dropped slightly, as US end users increasingly find it difficult to source fattier trimmings to grind with lean manufacturing beef. Alongside tight fat trimming supply, end users are also becoming cautious, committing to product at the high prices, with much market uncertainty still circulating.

The US wholesale fresh beef 50CL trimmings indicator is currently 36% higher than year ago levels and 8% above last week, at 116US¢/lb.

US fed beef supply (a source for fattier trimmings) looks to tighten even further over coming months, as US cattle on feed numbers for the past five months have declined progressively year-on-year. Whether prices will continue to rise through to the July period is another question, as after the peak Memorial Day demand period at the end of May, demand starts to wane. One bullish factor toward higher fatty trimmings prices through to July is the lower forward commitments to date by end users.

Argentinean meatpackers negotiate exports

7/05/2010

The Argentinean Secretary for Domestic Trade continues to maintain tight restrictions on beef exports, at the same time as seeking agreements with the industry to increase domestic beef supply. Low supplies and high beef prices continue to be a major contributor to Argentina's high consumer price inflation.

Last Friday (during weekly meetings with industry representatives) the Secretary announced the imposition of a "domestic beef quota" (unspecified) which meatpackers will need to fill in order to be granted approval for export certificates (Infocampo).

Moreover, the Secretary this week announced an agreement with a group of meatpackers to allow 25,000 tonnes cwt of beef exports each month. According to the deal, processors consented to sell 13 highly demanded cuts on the domestic market, at low prices set by the Secretary (Clarín). Other export companies may join this arrangement, as long as they sell the products at the suggested prices. The agreed export volume is around half the average monthly beef exports last year.

These latest arrangements and discussions between the Secretary and the industry have not been formalised into government regulations and, in the past, these pacts have rarely been fulfilled. In addition, procedures to bring effect to the current and previous agreements remain unclear and bureaucratic.

Since December, Argentinean cattle and beef prices have soared, as supplies slumped due to the liquidation experienced since 2006, exacerbated by a severe drought in 2008-09. As a result, the government nearly halted export certificate approvals, aiming to increase supplies on the domestic market. These severe restrictions on Argentine exports have been one of the contributing factors in the lift in demand for Australian beef in Russia over the past month, and in the strong lift in global manufacturing beef prices.

Record Australian chilled beef exports to Korea

7/05/2010

Australian chilled beef exports to Korea from January to April hit a new record at 10,512 tonnes swt - an increase of 29% on the same period last year. (DAFF).

During this period, chilled beef made up 30% of total beef volumes to Korea, compared with 26% the same period in 2009. Australian chilled chuck roll accounted for 22%, while short ribs and blade both made up 14% of total chilled beef exports each. In the same period last year, chuck roll represented 20%, while short ribs and blade made up 18% and 12% of total chilled beef exports, respectively (DAFF).

The strong presence of Australian chilled beef in the Korean market could be attributed to the steady growth in the Korean retail sector and growth in consumer demand for better quality products.

Cattle markets strong for May

7/05/2010

Cattle markets continue to show unusual resilience for this time of the year. Current cattle indicator values have only been visited once before in May - in 2006.

A combination of pre-winter culling and drop in cattle quality and restocker interest often causes a price low in May/June, particularly for young cattle and cows. However, this year improving export demand is maintaining firm to stronger prices. Values rose for Japan ox, medium steers and cows this week, reflecting continued rises in export prices to the US and Japan and a fall in the A$.

The global beef price recovery is being largely driven by low global beef stocks and falling competition from the US and South America, which also explains why the main rise has been for manufacturing grade beef and cheaper cuts into Russia, Japan and the US.

Lamb values remain at record levels for May, and 30-50% above the five-year average. Markets also lifted this week, led by finished categories, as total lamb numbers remained below year ago, and export and local demand is strong.

Similarly, sheep prices are at record levels and 50% above last year, with a further 10¢ lift this week, to 370¢/kg cwt. The key factor is the extraordinary low numbers, down 55% on last year at MLA's NLRS reported saleyards, and renewed restocker demand.

End of holiday season in Japan

7/05/2010

Beef trading with Japan resumed on Thursday this week after Japan's Golden Week (series of public holidays from 29 April to 5 May), but inquiry was limited as buyers wait for sales assessment during the holiday season. Export prices in improved slightly this week, due to a small depreciation in the A$ against the US$.

Japan continued to implement rigid quarantine measures against the foot-and-mouth disease (FMD) outbreak, but the number of FMD cases has now risen to 35 as at 7 May, all confined in the Miyazaki prefecture (located in the southern region of Japan).

In the meantime, Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) resumed issuing beef export certificates for Hong Kong. The MAFF halted all beef exports following the discovery of FMD on 20 April, and was notified late last week by the Hong Kong authority that it will permit imports of Japanese beef produced outside the disease affected and movement/carry-out restriction areas.

Hong Kong was the second largest export market for Japanese beef (namely high quality Wagyu products) in 2009, valued at 655 million yen (A$8.9 million).

Australian beef exporters optimistic about Korea

7/05/2010

Australian beef exporters expressed optimism regarding the Korean beef market this week as general enquiries increased. In April, Australia exported 26% more beef than the same month last year and 13% more year to date compared with 2009 (DAFF).

While prices for most imported beef cuts remained steady this week, US and Australian short rib prices lifted an average KRW300 (A$0.29) and KRW500 (A$0.49), respectively, on last week. Australia exported 5% less short ribs to Korea in the four months to April this year compared with the same period last year (DAFF).

According to Korean news source MBN, Korea's battle with foot-and-mouth disease has resulted in increased chicken consumption, with large discount stores (E-Mart, Lotte Mart) reporting a 12-30% rise in chicken sales from 8 April to 2 May this year.

Cattle market wrap

7/05/2010

National cattle supply increases

National cattle throughput increased by 20% at MLA's NLRS reported physical sales on last week, with the resumption of Monday markets in most states. Queensland, however, again had no Toowoomba sales, with another long weekend impacting Monday's markets.

Queensland was the only state to record a fall in supply, with most markets across the state registering reduced yardings. Dalby numbers fell 18% and at the Roma store sale supply dropped 27%, resulting in state throughput slipping by 13%. Yearlings made up the majority of Queensland's supply, most of the steer portion going to lotfeeders and restockers, while the heifer portion was split - around 30% was purchased by trade buyers and 44% sent back to the paddock.

NSW had the largest increase in numbers, with an additional 8,000 head cattle yarded. The boost in numbers was predominately caused by the resumption of the Forbes, Tamworth and Wagga markets. Although total yardings were up, most saleyards recorded reduced throughput compared with last week. Casino fell by almost 1,000 head, with good rainfall early in the week restricting the movement of cattle. In the north of the state conditions continue to deteriorate, with many cattle displaying a wintery coat.

First sale held at Muchea

The new Muchea livestock centre in WA held its first sale on Monday. Around 1,300 head cattle were offered which was well below the 3,400 head that can be accommodated, with numbers restricted due to the official opening and presentations. The yarding consisted a large offering of yearling steers, while heavyweight trade cattle and cows were in limited supply.

The light and medium weight yearling steers were mostly purchased by live exporters, with most selling between 185¢ and 190¢/kg lwt. Some better quality certified grain fed consignments met good competition from processors, with heavyweight yearling steers making between 178¢ and 203¢, to average 193¢/kg. Yearling heifers mostly sold to restockers to average around 140¢/kg. D2 cows selling to processors made between 102¢ and 130¢, to average 119¢/kg.

Varied price trend for cattle

With the onset of cooler weather and lack of rainfall in many areas there has been a mixed price trend at MLA's NLRS reported markets this week.

At the close of Thursday's markets, the Eastern states indicators exhibited mixed trends on last week. A general slip in quality and limited numbers of prime finished cattle has caused the trade steer indicator to finish 6¢ lower than last Thursday at 182¢/kg lwt. Despite good numbers suitable to feed continuing to come forward, the feeder steer indicator improved 1¢ to settle at 180¢/kg lwt. After a couple of days remaining unchanged, the Eastern Young cattle Indicator (EYCI) finished Thursday 2¢ higher than last week at 343¢/kg cwt.

Grown steers were strongly contested and recorded a dearer trend, the Japan ox indicator finished at 176¢ to be 4¢/kg lwt dearer than last week. US cows were 1¢ stronger at 131¢/kg lwt on the back of growing demand for grinding beef.

March quarter NZ meat exports

6/05/2010

New Zealand sheepmeat and beef exports were greater in the first quarter of 2010 than the same time in 2009, according to Statistics NZ, however, the value of these exports fell at the same time.

Exports of sheepmeat for the quarter increased 4% year on year, to 127,852 tonnes, while the value received fell by 6%, to NZ$946 million. Sheepmeat exports rose considerably to Hong Kong (up 164% to 5,602 tonnes), and also increased to the US (up 33%% to 7,752 tonnes) and the Middle East (up 23% to 12,998 tonnes). Exports to the EU were back 6% year-on-year to 61,594 tonnes. While lamb prices overseas, especially in the EU, are higher than the same time last year, the strong NZ$ means the price in NZ$ terms is actually down.

Beef exports for the quarter remained steady at 105,086 tonnes, although the value dropped by 9% to NZ$515 million. In a similar vein to the situation for lamb, high overseas beef prices, particularly in the US, were more than offset by the exchange rate.

Cattle exports to Indonesia slow following record first quarter

6/05/2010

Despite record cattle numbers exported to Indonesia in the first quarter of 2010, there are ongoing concerns around the issuing of Indonesian import permits and an oversupply of cattle in the market.

Australian live cattle exports to Indonesia during the first quarter of 2010 reached record levels, at 142,000 head, as total exports to all markets increased 25% year-on-year, to 220,000 head (Australian Bureau of Statistics). Along with Indonesia, shipments for the first three months of 2010 also increased with the reopening of Egypt (taking 16,000 head).

However, while the record shipments to Indonesia during the first quarter of 2010 were largely anticipated, several issues emerged throughout the period which could impact the trade into the middle of the year. The most significant concern continues to be the uncertainty surrounding the allocation of import permits by the Indonesian government, which are not being issued as freely as in previous years. Most importers are receiving permits as required, however, often at reduced volumes.

Despite the increased imports, sales of cattle from feedlots have slowed, leading to some accumulation of animals in feedlots causing oversupply concerns - the result of an increase in boxed beef and offal imports over the period. However, the ongoing impact of this is expected to be short term, live cattle demand is expected to strengthen (assuming import permits are available), as the peak buying period of Ramadan is expected to commence in May.

Additionally, the relatively poor wet season across the Kimberley region has reportedly seen many producers keen to relocate stock, conscious that feed supplies will not be adequate to carry numbers throughout the dry season. In contrast, the excellent wet season across northern Queensland and eastern NT is expected to keep supplies tight.

Given the seasonality in live export prices, the end of the wet season has seen indicative prices fall back to around 160-170¢/kg lwt for light steers ex. Darwin, which is back in-line with slaughter cattle prices. Since the start of 2010, indicative live cattle prices have fall 19%, while in contrast, the "grass-market" throughout Queensland had seen trade steer prices jump by over 20% to the end of April.

McGrowth recorded in first quarter sales

6/05/2010

McDonald's Corporation announced strong results for the first quarter of 2010, delivering increases in comparable sales (represents sales at all restaurants) and growth in guest counts (represents the number of transactions at all restaurants) in each global geographic segment.

Global sales, representative across all McDonald's restaurants for the first quarter of this year, increased 4.2% on the same time last year, attributed to growth across Europe, Asia/Pacific, Middle East and Africa and the US.

Comparable sales in the US increased 1.5%, although McDonald's attribute this to the introduction of value-based beverage offerings which include frappes and the McCafe items, and the new Breakfast Dollar Menu.

McDonald's indicate that April's global comparable sales performance is tracking at least as strong as the first quarter sales.

More broadly, there is now a notable sign of improvement within the US foodservice industry, with the recently released National Restaurant Performance Index for March at 100.5 - the first time since August 2007 the Index has crossed the 100 point threshold. Index values above 100 indicate that key industry indicators are in a period of expansion.

Japan continues to receive more US beef

6/05/2010

US beef exports to Japan continue to grow, with a 41% jump in February on the same time last year, to 8,516 tonnes cwt (United States Department of Agriculture). This is despite the limitation that all US beef products be derived from cattle less than 21 months of age.

A likely premise for higher beef exports to Japan was a lift in US cattle on feed numbers on year ago levels, between September and November 2009. This lift in fed cattle numbers saw a boost in US beef production during November and December on the same time in 2008, increasing fed beef supply eligible for the Japanese market for the beginning of this year.

The outlook though is for US beef supply to tighten over coming months, as US cattle on feed numbers for the past five months (December 09' through to April 10') have declined progressively year-on-year. This will limit the availability of product for export and possibly domestic use - prices have already increased significantly due to supply shortages.

In other global markets, US beef exports to Mexico continue to remain lower on year ago volumes, down 2% during February, to 17,980 tonnes cwt. Economic conditions in Mexico are yet to recover, with the depressed Mexican Peso against the US$ affecting the affordability of US beef.

US beef exports to Canada increased 21% in February on the same time last year, to 11,207 tonnes cwt, as the Canadian dollar strengthened against the US$.

Supply restricts Australian beef exports to Indonesia

6/05/2010

Australian beef exports to Indonesia during April decreased 17% from the previous month to 2,808 tonnes swt, although remained 17% above volumes sent in April 2009.

Beef shipments to the market during the first four months of 2010 decreased 14% compared with the same period in 2009, to 12,163 tonnes swt, due entirely to a fall in frozen volumes. In contrast, the chilled beef trade to the market remained firm, up 1% to 1,246 tonnes swt.

While reduced beef production following limited cattle supply restricted beef exports from Australia during the four months to April, beef demand in Indonesia remained resilient. Indonesia has sourced more beef from New Zealand, with exports from New Zealand during January to March jumping 45% year-on-year to 9,688 tonnes swt, despite the appreciation of the NZ$ against the Indonesian rupiah.

Australian beef offal shipments to Indonesia during January to April soared 39% compared with the same period in 2009, to 4,940 tonnes swt. New Zealand also exported 44% more beef offal to the market during the March quarter, to 4,034 tonnes swt.

Despite tighter supply, offal prices fall in April

6/05/2010

Edible beef offal prices were generally lower in April, falling on both the previous month and a year earlier, with prices subdued despite tighter supplies. The high A$ - averaging 93US¢ in April - continues to keep a lid on prices, and beef offal exports fell 4% over the month, totalling 10,130 tonnes swt.

Despite the beginning of the Japanese Golden Week holidays in May - which in previous years have seen offal prices spike as importers scrambled to build-up stocks - Japanese offal prices were weaker in April. Swiss-cut tongues averaged 13% lower year-on-year at $9.94/kg, while rumen pillars fell 21% to $4.54 (500-700grams). Offal exports to Japan fell 13% year-on-year to 1,940 tonnes.

In contrast, demand from Korea was strong, with volumes lifting 7% on a year earlier to 1,734 tonnes for the month. This helped boost prices, with headmeat rising 7% to average $2.78/kg and tail prices rising 18% to $4.69/kg. Thick and thin-skirt prices were maintained at $3.80 and $3.75/kg, respectively, level with the previous year.

Despite very strong demand from Indonesia, where offal exports rose 55% to 1,488 tonnes swt for the month, prices followed the general market down. Hearts ($1.55/kg) and kidneys ($0.93/kg) both averaged cheaper over the month.

Liver prices benefited from strong Russian demand - with shipments rising 57% year-on-year to 1,046 tonnes swt, lifting average prices 33% to an average of $1.36/kg in April. However, both hearts ($1.53/kg) and kidneys ($0.86/kg) averaged cheaper, falling 8% and 12%, respectively. Tripe prices also fell, averaging $2.08/kg, back 13% on the previous year, due to much weaker buying from Hong Kong, which took 45% less offal than a year earlier at 1,353 tonnes swt.

FMD detected in Japan

Japanese officials have confirmed a suspected outbreak of foot and mouth disease (FMD) in the southern Miyazaki prefecture, the first evidence of the disease in the country in a decade says Rural Press.

The Japanese Ministry of Agriculture, Forestry and Fisheries issued a statement a week ago confirming the detection. MAFF has since established an FMD control response headquarters and implemented a management plan, including strict controls over animal movements.

The report says that a PCR test for FMD returned a positive result for samples taken from a breeding farm, which was located on Kyushu, the southernmost of Japan's four main islands.

The Australian Embassy's agriculture counsellor in Tokyo, David Porritt, says the detection will directly impact Australia's import risk analysis examining Japan's market access request for beef and beef products following the BSE amendments.

Outbreaks rock Asia

The outbreak of FMD in Japan - and a further outbreak in nearby South Korea - has dealt a blow to the Asian livestock industry says Weekly Times and the discoveries have heightened fears the disease is on the move.

For the first time in a decade China, Japan and Korea all have simultaneous outbreaks of the disease and up to 50,000 animals have been destroyed in South Korea since January as officials there try to stem the spread of FMD.

The latest case, found in Chunju a week ago, has already seen 12,600 livestock culled in a three-kilometre radius of the affected farm and the paper reports more animals were expected to be killed.

This is the first case to be reported in the northwest of the country and the most recent culls add to the 30,000 head destroyed at the start of the month although MLA Korean regional manager Jim Lim says there is still no evidence that beef consumption has dropped as a result.

Japan rebuffs US beef bid

Little tangible progress has been made over more liberal US beef market access to Japan following a series of high-level talks in Tokyo between the countries says Queensland Country Life.

Any progress made by the US in hastening the approval process in Japan for access by American beef above the current 20-month limit will have major implications for Australian beef in a more competitive market going forward.

At this stage, however, the view across the trade in Japan is there will be no breakthrough in US access for at least the next 12-18 months, even in a staged process rising from the current 20 months to 30 months.

The paper says that even more complete age-free trade could be still further away, which would extend the period since the US held unfettered access to the Japanese market to an incredible eight years.

Beef bowl giants engage in price wars

Queensland Country Life says a vicious price war between Japan's major beef bowl restaurant chains is symptomatic of the impact the country's current deflationary economy is having on both beef consumers and food service operators.

The paper says that the Gyudon beef bowl chains offer Japanese consumers a quick, tasty meal of thinly sliced, seasoned beef over a bowl of rice - a popular and inexpensive fast-food option.

But in a market where consumers have been working to moderate their expenditure, in the past few weeks the two major competing Gyudon chains have lowered prices to unbelievable levels in a deadly struggle for the fast food dollar.

MLA Japan region manager Glen Feist says the trend towards extreme price competitiveness is evident right across the financially stressed Japanese market, not just in the cheap fast food segment.

Iron chefs set beef promotion challenge

Australia should educate Japanese consumers more about clean and green Aussie beef, particularly how to barbecue it, say two of Japan's best and most popular chefs according to a report in The Land.

Australian beef is often seen by Japanese consumers as an "affordable" option and not necessarily a luxury meal according to Hiroyuki Sakai, made internationally famous by the TV show Iron Chef, and Tsutomu Ochai, renowned in Japan for his Italian-inspired cooking.

The popular chefs, who have been in Australia on a red meat and seafood tour hosted by MLA and seafood wholesaler Toho, say the average Japanese eats less than six kilograms of beef a year.

They say one way to increase consumption is to market the way our cattle are produced, as both chefs were impressed with the large open spaces in which cattle roamed when they visited farms.

Feeder focus for Maydan field day

Optimising the performance of cattle in the feedlot environment will be the central theme behind a progress field day which Queensland Country Life says will be held as part of this month's inaugural Primex Pacific Beef Carcase competition.

Maydan Feedlot, near Warwick, which is feeding the entries in the competition, will host the mid-term field day from 10 am on May 12 and the gathering will provide an opportunity to view the 12 teams of cattle on feed.

Speakers will include MLA livestock supply chain coordinator Mark Inglis, talking on MSA livestock supply; Pfizer genetics Terry Farrell on the expanded GeneStar MVP test; cattle vet Kev Sullivan on respiratory disease and Maydan principal Geoff Willett with an update on performance amongst the competition entries.

The Pacific Beef Carcase competition will form a major component of the beef industry related activity at the Primex beef field days at Casino, which the paper says will be held from June 17-19.

Leucaena rumen bug in demand

A rapidly expanding cattle industry investment in leucaena fodder legume pasture is ramping up the demand for the inoculum containing a rumen bacterium which Queensland Country Life reports can break down a toxin present in leucaena, resulting in better animal performance.

Department of Employment, Economic Development and Innovation technical officer Jo Campbell says that to meet the huge demand for the rumen bacteria, orders can now be lodged at rumenfluid@deedi.qld.gove.au.

Campbell says the online ordering service is another option to calling Brian Pastures direct on 07 4161 3700 to meet the unprecedented demand for the artificially cultured rumen bacterial inoculum.

She says there is now more than 200,000 hectares of leucaena-based pasture growing throughout Queensland, and producers are well aware of the potential impact of leucaena toxicity.

Meat laws hard to chew

Proposed mandatory reporting of food bacteria in South Australia's new Public Health Plan could be extremely costly for the meat industry according to a report in the Stock Journal.

The paper says that as part of the plan, all producers, processors and wholesalers within a food industry will have to report all micro-organisms found in their products to a public health officer.

But according to Flinders University professor of public health microbiology, Richard Bentham, it will be the State's, and the nation's red meat industry which will be the hardest hit.

Bentham says all food is known to have "normal flora" or microbial contamination to some degree, but raw meat is more susceptible, and it is well established meat gets contaminated but it doesn't necessarily mean a public health risk.

Beef price hike as US grinding supply falters

A combination of supply factors is still driving imported grinding meat prices dramatically higher in the US, with Stock Journal reporting the overall trend continues to be up almost 40 pc since October.

Analysts say some manufacturing meat lines, such as insides and flanks, jumped 35 US cents in the past few weeks as US end-users struggle to secure available supply, sparking a bullish mood in the market.

MLA North America region manager Scott Hansen says the situation is being compounded by demand from strongly emerging markets such as Russia, which are sucking significant volume out of tradition suppliers such as Uruguay.

US industry analyst Steve Kay says there has been a remarkable rally in US cattle prices, because of the shortage of supply, with cash live cattle prices hitting their highest level since 2008.

Production, FMD a global issue says UN leader

Disease, environmental and social concerns with the world's burgeoning livestock population are not being appropriately addressed by political leaders and need "urgent" attention from a united voice world animal health expert Keith Sumption has told Rural Press.

He says the European Commission secretary for the Food Agriculture Organisation of the UN says policy makers need to support small-scale farmers as the world's livestock production moves to large-scale commercial holdings to limit production, social, environmental and disease pressures - particularly foot and mouth disease.

Speaking at a recent international FMD symposium in Melbourne, Sumption told delegates that the control of FMD might be integral for exporting countries, but it cuts across health and environmental agendas.

He says about 2.6 billion livestock live in FMD endemic countries, meaning the cost of not controlling the disease needs to be re-addressed and industry should be not just looking at direct losses but the impact on long-term production.

New US beef guide

The North American Meat Processors Association has recently launched the new, and revised, edition of its Meat Buyer's Guide says Stock and Land, revealing strategic initiatives to broaden features beyond the US.

New features in the edition include a two-page Australian Beef User Guide, containing information on Australia's traceability and food safety systems, shelf life of Australian product and how to read labelling information on Australian product.

The paper says that the guide also includes Canadian grading standards, terminology and cut descriptions, as well as new US beef value cuts such as Denver Steak (found in the chuck roll) and Western Griller (the bottom round, outside flat).

It also looks into new US lamb value cuts such as flank steak and boneless pectoral meat. This is the book's sixth edition and it has been endorsed by 20 industry and food service associations in the US.

Beef sectors embrace DNA testing

According to a report in The Land, the DNA testing of bulls - and selecting bulls with better feed efficiency traits - could result in progeny which research shows offering a saving of $1000 or more.

With improvements in DNA cattle testing for feed efficiency, marbling and tenderness, Pfizer's Terry Farrell told this year's NSW Beef Spectacular it is expected the feedlot and commercial sectors will increasingly turn to the technology.

Farrell told participants at the Spectacular about the new GeneStar MVP test, which provides molecular value predictions for these traits, and he says that it has been tested on thousands of cattle in Australia and the US.

"We did the GeneStar test on each of the animals, and then what we do is collect the carcase results and basically just see what was a match, so the animal we said was going to be tender is tender," Farrell says.

Angus on the trait ‘n' narrow

Selection through genetic data is advancing in leaps and bounds for beef cattle producers according to a report in the Weekly Times and the American Angus Association is getting on the bandwagon.

Late last year the paper says that AAA announced a collaboration with an animal health company which allows producers to identify and select 14 traits through an animal's DNA - including marbling and docility.

AAA has teamed up with Igenity, which is owned by animal-health company Merial, to produce genomic-enhanced expected progeny differences using information from a high-density who genome scan with 50,000 markers.

AAA vice president Joe Hampton is in Australia to speak at the Angus national conference at Albury Wodonga and says he a "very excited" about where DNA technology is heading.

Better carcase values?

Better carcase value predictions could, in the future, provide a system where beef cattle producers are paid on the value of each carcase, rather than a mob value according to a report in The Land.

Speaking earlier this year at the NSW Beef Spectacular, Industry and Investment NSW beef cattle officer Jeff House says the problem with a mob average price is that it sends weak signals to producers about what is the right type of carcase.

House told the paper that there is a huge variability within each herd, and profitability can be improved by targeting each animal towards a particular market and this way producers are more likely to meet that market's grid specifications.

He says in the current system, the premiums paid in saleyards of 10 to 15 cents a kilogram for B and B+ muscle score cattle is the only obvious area where increased carcase value is being passed on to the vendor.

Baillieu grazing query

The Victorian government has accused the Coalition parties of promising to restore national park grazing rights against the wishes of its leader Ted Baillieu according to a report in the Weekly Times.

Environment minister Gavin Jennings has claimed Baillieu does not share his Coalition partners' support for returning cattle to the Alpine National Park after the Coalition earlier this year pledged to restore "strategic" grazing if it wins the November election.

Nationals leader Peter Ryan and agriculture spokesman Peter Walsh unveiled the policy for a return to traditional alpine grazing in January - however the Coalition has pledged to only use the cattle as a fire management tool.

At a Rural Press Club of Victoria lunch Jennings was asked if he thought the Coalition could implement its policy without legislation and his response was their real problem was if the Coalition all share the plan.

Foreigners killing it

Four processors dominate 49 pc of Australia's meat processing sector and Weekly Times says only one of them is Australian owned according to a new report, Meat Processing in Australia, released by global industry research firm IBISWorld.

The paper says that the new report shows the 51 pc balance of the local processing industry is made up of a staggering 765 individual operations scattered around the country but concentrated in the eastern states.

Swift Australia, whose parent company is South America's global juggernaut JBS Swift, accounts for 22 pc of the market, while the American-owned Cargill Australia comes second with 12 pc market share.

Next in line is Consolidated Press Holdings, which merged with Teys Brothers in 2002, with a nine pc share, followed by another international owner in Japan's Nippon Meats at six pc.

Beef's Korean calling

Australia must quickly finalise a free-trade deal with South Korea to help fend off the growing challenge from American beef industry in this key market according to a report in the Weekly Times.

The paper says that is one of the main messages coming from the Cattle Council of Australia after its recent fact-finding trip to Korea, where delegates met with beef farmers, retailers and importers.

CCA executive director David Inall says the US import share in the lucrative Korean market has been growing - at the expense of the Australian industry - since the Americans re-entered Korea two years ago after its BSE ban was lifted.

Inall says Korean beef consumers are very loyal to Australia, and have appreciated the quality of our product, but they are tempted by price and the visit shows the American are becoming "very price competitive".

MLA UPDATE

Australia & Chile sign beef MoU

28/04/2010

A Memorandum of Understanding (MoU) between Australia and Chile was signed on 15 April under which Chile recognises the AUS-MEAT language as meeting the aims and objectives of the Chile Beef Grading Scheme.

The agreement to proceed with a MoU was contained in a side letter to the Australia-Chile Free Trade Agreement (FTA) which entered into force on 6 March 2009.

The FTA resulted in elimination of the 6% tariff on beef, lamb, mutton, offal, goat and processed product.

The resultant MoU removes the last remaining barrier facing Australian beef exports to Chile - the cost of employing Chilean beef graders which was necessary in order to market beef in Chile.

The Australian beef industry exported 1,703 tonnes of beef to Chile in 2009.

Demand and lower supply lifts lamb and cow prices

30/04/2010

After easing since the peaks of over $5/kg cwt in February, finished lamb prices rose this week, reflecting both low supplies and strong demand locally and overseas. Lamb supplies in the first four months have been 9% lower than 2009, due to widespread rains. April supply has been further disrupted by the series of short trading weeks, including this week.

Processor and feeder demand was strong again this week, on reduced numbers - with all national category saleyard indicators up 16-23¢/kg cwt on last week.

Cattle price indicators were reasonably steady this week, except for some falls on young cattle and a further lift on cows - driven by Russian, Japan and US demand for manufacturing grade beef.

Restockers are grabbing a higher than normal proportion of cattle sold, adding to the current problems facing meat processors - including lower supplies, sluggish demand on high quality cuts and co-products, rising costs and the high A$.

The big news this week was the release of inflation figures for the March quarter, which again demonstrated that meat retail prices do not immediately reflect saleyard price moves. There was only a 0.6% rise in retail beef prices compared with the December quarter and 3.3% for lamb, which contrasted with rises of 8% and 19%, respectively, in saleyard prices.

Japan FMD update

30/04/2010

Japan confirmed an 11th case of foot-and-mouth disease (FMD) as at 29 April. While the disease has been found mostly in beef and dairy cattle, two of the 11 FMD cases were reported from pig and buffalo farms.

The outbreak has been confined to the Miyazaki prefecture so far (located in the southern region of Japan); with Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) working closely with the prefectural government since the establishment of FMD control response headquarters in the region.

All animals from the infected properties have been, or are in a process of being slaughtered for the epidemic prevention purpose. Over 1,000 cattle have reportedly been slaughtered and buried so far.

Miyazaki is known for high quality Wagyu production, and the third largest prefecture in beef cattle herd numbers in Japan. There has been no report so far that suggests a decline in beef consumption in Japan after the incidents, and the trade is closely monitoring consumer reactions.

Limited trading with Japan

30/04/2010

Golden Week (series of public holidays until 5 May) has started in Japan, resulting in limited activities for both the Australian export and Japanese wholesale market this week. Buyers remained interested in sourcing more trimming products from Australia, while cow meat (85CL) in the Japanese wholesale market averaged 510 yen/kg this week, the highest since October 2008.

The 11th round of Australia-Japan economic partnership agreement (EPA/FTA) negotiations were held in Canberra between 19 and 22 April. Sugar and wheat were discussed among other issues, but the difference in opinions between the two countries remained, according to the JA News. Japan regards wheat, sugar, dairy products and beef as ‘sensitive items', while Australia continues to seek improved market access for these products.

No Korean market impact from FMD

30/04/2010

The spread of the foot-and-mouth disease continues to make headlines in Korea, as another farm in Gangwhado was found infected with the virus on 28 April.

There has been no appreciable impact from FMD on Hanwoo cattle rates as yet, with prices remaining 21% higher than last year. Most prices of imported beef cuts in the Korean wholesale market also remained steady this week. The price of US short rib lifted for the 4th consecutive week - due to a market shortage, as Korean imports of this item has fallen 11% year-to-date compared with 2009 (NVRQS).

However, the Korean meat industry fears that the increase in culling livestock, trade constraints and possible changes in consumer behaviour could impact the foodservice sector next month. In May, Korea's restaurant traffic and sales usually lifts compared with quiet months between Lunar Year (February) and April. Some Korean retailers in affected FMD regions have reported decreasing sales of beef and pork, while demand for chicken has improved (Yonhap).

Australian beef exports from 1-27 April this month totalled a healthy 9,148 tonnes swt, compared with 8,543 tonnes swt in April 2009, with chilled products making up 27% (26% in 2009).

US market bullish despite higher cattle placements

30/04/2010

Cattle placements into US feedlots during March increased 3%, to 1.87 million head (United States Department of Agriculture). The rise should have seen a slightly bearish market outlook, but with pre-report estimates expecting a 6.6% rise in placements the outlook for the fed cattle market is neutral to bullish.

The lower than expected cattle placements is reportedly a reflection of tighter calf supplies due to the 2009 US calf crop being the lowest in 60 years, which will likely implicate placements over coming months. One factor to counteract this is strong cattle prices enticing producers to turn off more cattle, instead of taking a risk to expand their herd.

Cattle on feed numbers (as at 1 April 2010) declined 4% on the same time last year, to 10.77 million head - the fifth consecutive monthly fall.

While cattle marketings for the past five months have increased year-on-year, the lower cattle on feed numbers and placements (during November to January) will tighten US fed cattle supplies over coming months.

High prices drawing out the US cows

30/04/2010

Weekly US cow slaughter since the beginning of March has progressively been higher each week than year ago levels. The rise is reportedly being attributed to producers capitalizing on the high prices for cows and cow meat, in order to offset difficult financial situations rather than expanding or rebuilding operations.

While overall cattle slaughter for 2010 is projected to be lower, the current increase in cow slaughter at the moment is unlikely to offset a decline in fed cattle production. The higher cow slaughter is unlikely to be sustained coming up to the summer months.

Despite higher US domestic cow beef supplies, the drop in imported beef and the continuation of spot trading among US end users has helped to keep manufacturing beef prices in the US well above year ago levels. The imported prices in A$ terms are even higher on year ago levels - the A$ was averaging 72US¢ at the end of April last year and it is now currently averaging at 92US¢.

Deflation challenges Japan foodservice

29/04/2010

Total foodservice sector sales in Japan declined 2% year-on-year in March, but customer numbers were maintained (up 1%) on last year, according to the Japan Foodservice Association.

The results indicate ongoing economizing by consumers and the deflationary climate in Japan, despite the government's view that the economy is "steadily recovering" (monthly economic report by Japan's Cabinet Office).

Among the fast food sector, Japanese style (namely gyudon or beef rice bowl) restaurant sales were down 8% year-on-year during March, while western style (hamburgers) sales also declined 2%. Both are volume users of Australian beef in Japan.

The cold weather in March, however, seems to have assisted sales of warm noodles, outperforming the previous year's sales by 13%.

Beef imports into Japan up in March

29/04/2010

Japan imported 42,782 tonnes swt of beef in March, up 22% year-on-year and the highest March volume since 2006. The strong outcome was largely due to improved supply from Australia (particularly frozen), as well as a continuing increase in beef imports from the US.

According to Japan's Ministry of Finance, 32,854 tonnes of Australian beef were imported into Japan during March, 17% higher than the previous year. Imports from the US grew by 56% to 5,551 tonnes, but only 22% of the pre-BSE 2003 level.

Beef imports from the US totalled 14,867 tonnes during the March quarter (up 45% on last year, but only 22% of 2003). The improved availability of beef from cattle under 21 months assisted the increase this year, as well as the favourable exchange rates for Japanese importers. The A$ appreciated 32% year-on-year against the Japanese yen during the quarter, while the US$ depreciated by 3% against the yen.

China takes more low-priced beef during March quarter

29/04/2010

Beef imports into China during January to March jumped 92% compared with the same period last year, to 3,644 tonnes. Shipments from most suppliers (New Zealand, Brazil and Uruguay) rose during this period; in contrast, imports from Australia registered a lower volume on a year ago.

Low supply from Australia, particularly during January and February, as wet weather reduced production, lowered available supply for China during the March quarter. Total imports of Australian beef into China fell 4% during the period (to 1,085 tonnes), with a 50% drop in chilled volumes, despite a 1% increase in frozen beef.

During the first three months of 2010, China sourced more beef from other suppliers, including a 317% rise in volumes from Uruguay (1,508 tonnes) and a 130% jump in New Zealand product (927 tonnes). Imports of Brazilian beef also increased from zero during January to March last year to 124 tonnes this year.

Thursday daily livestock article

29/04/2010

At Dalby supply eased and there was a wide variation in the quality of young cattle. Vealer steers to feed averaged 196¢, as most were purchased by restockers around 208¢/kg. Heavyweight yearling steers to feed were firm at 185¢/kg. Grown steers to processors slipped 1¢ to 168¢/kg. Heavyweight D4 cows remained steady around 134¢/kg.

A few less cattle were yarded at Casino with a larger percentage of plainer cattle throughout the sale. Vealers slipped 3¢ to 10¢/kg across all categories. Heavyweight grown steers were firm at an average of 164¢/kg. Medium weight cows gained 2¢ to make between 126¢ and 143¢/kg.

At Warrnambool numbers and quality declined. Heavyweight vealer heifers slipped 10¢ to make from 164¢ to 186¢/kg. Yearling heifers to slaughter averaged 166¢ to finish 2¢/kg cheaper. Heavyweight grown steers improved 2¢ to 7¢ to mostly sell around 175¢/kg. Cows improved across all weights and grades with the D4 portion averaging 153¢/kg.

At the finish of Wednesday's markets the Eastern Young Cattle Indicator (EYCI) was 0.5¢ cheaper at 342.75¢/kg cwt. The trade steer indicator gained 4¢ to 188¢, feeder steers settled at 180¢ to be 1¢/kg cheaper. Jap ox lost 1¢ to finish at 173¢ and US cow improved 1¢ to be 130¢/kg.

At CTLX numbers eased and quality was good. Trade weight lambs lifted by 20¢, as the heavy trade portion averaged close to 491¢/kg cwt. Well finished heavy lambs were dearer as most pens sold around 474¢/kg cwt. Merino ewes to slaughter were firm at 388¢/kg cwt, whilst Merino wethers to the trade peaked at $100/head.

Numbers remained simular at Hamilton and quality was varied. Strong processor demand lifted some trade weight pens by up to 28¢, which left most sales from 450¢ to 495¢/kg cwt. Heavy lambs also benefited from the elevated competition, lifting 18¢ to average close to 466¢/kg cwt. Heavy crossbreed ewes to slaughter eased slightly to mostly average 382¢/kg cwt.

After Wednesday's markets eastern states restocker lambs settled at 508¢, easing 7¢/kg cwt for the week. Merino lambs gained 4¢ - to 412¢, while light lambs settled at 440¢/kg cwt. Trade lambs improved 13¢ - to 486¢, while heavy lambs finished 6¢ higher at 464¢/kg cwt. Mutton continued its weaker trend, losing 7¢ to settle at 365¢/kg cwt.

Cattle market alert

28/04/2010

Cattle supply and quality slips

Most physical markets recorded lower numbers with the public holiday on Monday restricting numbers. There were some exceptions however with Roma continuing to grow as the supply out of central Queensland increases.

The quality of the young cattle yarded is becoming plainer as cooler weather and ongoing dry conditions in some northern regions is having an impact. Very few young prime cattle for slaughter were penned with restockers and lot feeders active on the plainer lines of yearlings which dominated many yardings. Some good runs of cows suitable for slaughter were offered along with some lighter grades purchased to return to the paddock.

The combination of a short week, limited supply of prime cattle and generally plainer quality has seen a mixed prices trend, with some markets cheaper and some dearer.

At the close of Tuesday's markets the Eastern Young Cattle Indicator (EYCI) was 4¢ below last week at 341.25¢/kg cwt. The trade steer indicator gained 4¢ to 188¢, feeder steer slipped 1¢ to settle at 180¢/kg lwt. Japan ox remained firm at 174¢ and US cow finished at 128¢ to be 3¢/kg lwt cheaper.