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Mustang Sally Farm
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« Reply #165 on: February 22, 2012, 02:51:37 AM »

Canadian Cattle Statistics February 2012
Canadian cattle farmers had just over 12.5 million cattle on their farms as of January 1, 2012, up 0.5% from the same date a year earlier, in the February 2012 Canadian cattle Statistics.
 

Highlights
 •Canadian cattle farmers had just over 12.5 million cattle on their farms as of January 1, 2012, up 0.5% from the same date a year earlier.
•The inventory of beef cows fell by 1.0% to 4.2 million head, continuing a downward trend that started in January 2006. However, the January 1, 2012 inventory of beef replacement heifers increased by 4.3% to 554,300 head.
•Canadian farmers had about 1.4 million dairy cows and heifers on their farms, roughly unchanged from January 1, 2011.
•In 2011, cattle and calf slaughter totalled 3.5 million head, down 7.5% from 2010 and down 6.5% from 2009.
•There were an estimated 689,300 head of cattle and calves exported in 2011, down 35.2% from 2010 and 35.4% below the level of 2009.
 
Analysis
 
Cattle inventories increased in 2011 as prices improved throughout the year. Canadian cattle farmers had just over 12.5 million cattle on their farms as of January 1, 2012, up 0.5% from the same date a year earlier; the first year-over-year increase in seven years.

The inventory of beef cows fell by 1.0%, continuing a downward trend that started in January 2006. However, the January 1, 2012 inventory of beef replacement heifers increased 4.8% in the Western provinces and increased 1.0% in the East. Overall, inventories of beef replacement heifers rose 4.3%. The increase in replacement heifers indicates that producers are beginning to replenish the herd with younger cows.

Canadian farmers had about 1.4 million dairy cows and heifers on their farms, roughly unchanged from January 1, 2011.

Cattle on feeding operations in Canada were higher by 4.0% at January 1, 2012 from a year earlier. Heifers and calves were seen to have increased by 2.7% and 15.2% respectively, while the number of steers declined 1.2% from a year ago.

In 2011, cattle and calf slaughter totalled 3.5 million head, down 7.5% from 2010 and down 6.5% from the same period in 2009. On average, 3.7 million head were slaughtered in Canada in each of the previous five years. There were an estimated 689,300 head of cattle and calves exported in 2011, down 35.2% from 2010 and 35.4% below the level of 2009.
 






Farm type and number
 
An estimated 95,105 farms reported cattle and calves as of January 1, 2012, down 1.4% from the same date last year and down 4.3% from two years earlier. Beef producers account for approximately 85% of the total number of farms with cattle in Canada.

Beef cattle production takes place mainly on three types of cattle farms. At January 1, 2012 there were 66,595 cow-calf operations, 10,865 cow-calf backgrounding operations, and 2,945 feeding operations in Canada. The bulk of Canadian beef cow inventories (93.0%) were on cow-calf operations.

Usually more than half the heifers for slaughter and steers inventories in Canada, at January 1, are reported to be on feeding operations. The Western provinces had 31.6% of the total feeding operations and accounted for 76.8% of the Canadian cattle inventory on feeding operations on January 1, 2012.

There were 16,270 farms reporting dairy cattle at January 1, 2012 with 85.6% of those operations located in Eastern Canada. Specialised dairy farms accounted for 88.0% of all farms producing dairy products. There were 1,570 farms in Canada that kept both a dairy and a cow-calf (beef) herd on the same operation. The number of operations with dairy cattle that reported veal production was 1,155 at January 1, 2012.
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« Reply #166 on: February 23, 2012, 08:16:42 AM »

Wednesday, February 22, 2012
Canadian Cattle Inventory Up with Improved Prices
CANADA - Canadian cattle farmers had just over 12.5 million cattle on their farms as of 1 January, 2012, up 0.5 per cent from the same date a year earlier; the first year-over-year increase in seven years.


The inventory of beef cows fell by one per cent, continuing a downward trend that started in January 2006. However, the 1 January, 2012 inventory of beef replacement heifers increased 4.8 per cent in the Western provinces and increased one per cent in the East. Overall, inventories of beef replacement heifers rose 4.3 per cent. The increase in replacement heifers indicates that producers are beginning to replenish the herd with younger cows, according to a report by StatisticsCanada.

Canadian farmers had about 1.4 million dairy cows and heifers on their farms, roughly unchanged from 1 January, 2011.

Cattle on feeding operations in Canada were higher by four per cent at 1 January, 2012 from a year earlier. Heifers and calves were seen to have increased by 2.7 per cent and 15.2 per cent respectively, while the number of steers declined 1.2 per cent from a year ago.

In 2011, cattle and calf slaughter totalled 3.5 million head, down 7.5 per cent from 2010 and down 6.5 per cent from the same period in 2009. On average, 3.7 million head were slaughtered in Canada in each of the previous five years. There were an estimated 689,300 head of cattle and calves exported in 2011, down 35.2 per cent from 2010 and 35.4 per cent below the level of 2009.

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« Reply #167 on: February 24, 2012, 03:11:10 AM »

NZ Beef Mid Season Update 2011-12
Beef exports are likely to increase in 2012, whilst excellent seasonal conditions will push cattle weights higher. Farmgate prices are not likely to change much, according to the Beef and Lamb NZ Mid Season Update.


Livestock Numbers
Total beef cattle numbers at 30 June 2011 provisionally 3.88 million head decreased 1.7 per cent on the previous June. The greatest decrease was in breeding cows which decreased 3.2 per cent. The driver of this decrease was high schedule prices that encouraged culling of dry and poor performing breeding cows.

North Island beef cattle numbers decreased 2.3 per cent to 2.77 million head at June 30 2011. Continued demand from the dairy industry for breeding/finishing land within the Taranaki-Manawatu region with dairy grazers being substituted for beef cattle contributed to this decline. Overall, North Island beef cow numbers decreased 2.6 per cent for the year to 30 June 2011.

South Island beef cattle numbers estimated at 1.11 million head were almost static (-0.2%) on the previous June. Ideal climatic conditions resulted in an increase in finishing cattle retentions, particulary in Otago where total cattle numbers increased 7.4 percent. Within this South Island beef cow numbers to 30 June 2011 decreased 4.2 percent.

Dairy cattle at 30 June 2010, totalled provisionally 6.18 million head. This was an increase of 4.4 per cent or 260,000 head on the previous June period. As referred to earlier in this section one of the drivers of the sheep flock decline was the increase in dairy cattle numbers. This was largely driven by an estimated 120 new dairy farms starting in the spring of 2011 along with a recovery in dairy cow numbers from drought particularly on the North Island.

Beef And Veal Exports

In the year ended 30 September 2011 New Zealand beef exports decreased 2.3 per cent to 356,100 tonnes shipped weight. However, beef exports receipts increased 14.8 per cent to $2.1 billion with the price per tonne increasing 15.8 per cent. North America accounted for 49.0 per cent of beef exports but 45.0 per cent of export receipts due to shipments dominated by processing beef.

Total exports to North America decreased 4.0 per cent from the previous year to 175,902 tonnes. Shipments to USA and Mexico decreased 7.0 and 18.0 per cent respectively while shipments to Canada increased 22.0 per cent.

North Asia, the next largest market region, took 26.0 per cent of New Zealand’s beef exports. The main markets in North Asia were South Korea (9.8%), Japan (8.5%) and Taiwan (5.5%) which accounted for 24.0 per cent of beef export receipts and tonnage shipped.

Exports to South Asia decreased 18.9 per cent to 43,900 tonnes shipped weight. The majority of the decrease was to Indonesia (-28.7%) reflecting Indonesian plans to curb beef imports and increase their domestic beef supply.

New Zealand beef exports to the European Union (EU) in the year to 30 September 2011 increased 24.5 per cent. Overall the EU took 3.9 per cent of beef exports but accounted for 8.4 per cent of total export receipts reflecting the high value mix of cuts that New Zealand ships to the EU.

For 2011-12, total FOB receipts for beef products (including co-products) under the USD 0.79 exchange rate scenario are estimated to increase 1.7 per cent to $2.59 billion on the previous year. Beef shipments are expected to increase (+4.5%) on the previous year while the price per tonne is estimated to decrease 2.4 per cent.

Co-products export value are expected to remain almost static (+0.2%) at $473 million even though the associated beef volume increases.

Final data for the year ended 30 September 2011 shows total beef receipts were $2.55 billion, up 13.3 per cent on the previous September year. This reflects a 14.8 per cent increase in beef price while volumes shipped decreased 2.3 per cent.

Beef Price – International Situation

The graph above illustrates the effect of the weaker USD against the NZD on New Zealand beef returns in 2010-11. In 2010-11, the annual average in-market US beef price increased 20.6 per cent compared with the previous year while the same price in New Zealand increased a significantly lesser 10.5 per cent. This was driven by the weaker USD compared with the NZD. The NZD:USD exchange rate averaged 0.79 cents in 2010-11 compared with an average of 0.71 cents for the previous year. In 2011-12 season average in market prices and NZD:USD are expected to remain almost unchanged.

Overview
The global economy remains uncertain with increasing fears of recession in Europe. This is expected to soften consumer demand for high value food products.

United States
As expected the US herd continues to shrink. The January 2012 cattle inventory was down 2.0 per cent on the previous year to 90.8 million head, and the beef cow inventory was down 3.0 per cent. Liquidation has continued due to high feed costs and drought conditions in Texas and surrounding states which account for 40.0 per cent of the US beef cow herd.

In 2011 US beef exports achieved a milestone, with shipments surpassing the volumes that existed prior to the discovery of BSE in December 2003.

US beef exports grew 19 per cent in 2010 and provisional figures for 2011 show an increase of 25.0 per cent. Export accounted for 11.0 per cent of total beef production. Despite high prices for beef in US, these have not been enough to encourage expansion.

The latest USDA forecast is for a 14 per cent increase in beef imports in 2012.

Australia
ABARE reports the Australian cattle herd to increase by 5.0 per cent in 2011-12 to 30.2 million, supported by good weather conditions and pasture growth.

Beef cattle slaughter is forecast to decrease by 2.0 per cent to 7.9 million head, the lowest since 1995-96. Despite the fall in total slaughter, Australian beef and veal production is forecast to remain unchanged at 1.2 million of tonnes because of higher average carcass weights due to the good pasture availability.

Total Australian beef exports are forecast to remain unchanged at 941,000 tonnes although market diversification is increasing. Over the last decade exports to USA, Japan and Korea, the three main markets for Australian beef, accounted for 82.0 per cent of all beef exports. In 2011-12 these are estimated to fall to 68.0 per cent.

North Asia
The Japanese market is not expected to change in 2012 as the market continues to be “fragile” after the earthquake, tsunami and subsequent nuclear reactor breaches in addition to currency issues and a sluggish economy.

Japan is one of the leading export destinations for US beef and import data for the year to November 2011 showed US exports to Japan were up 29.0 per cent in volume and 38.0 per cent in value compared with the same period for 2010.

European Union
Beef output in the EU-17 region is expected to fall by almost 3.0 per cent in 2012 to just over 7.1 million tonnes. This fall is largely attributable to lower production in France, the UK and Ireland. French output is forecast to fall by 4.0 per cent to 1.51 million tonnes on the back of the drought that occurred earlier in 2011 which led to some liquidation of the herd. UK output is expected to fall by 6.0 per cent to 881,000 tonnes with most of this fall occurring in the first half of the year.

Beef Prices – Farm-Gate

The monthly trend for the M Bull, P Steer and Heifer (270-295kg) schedule price to the end of September 2011 is shown in the two graphs above. Three exchange rate scenarios are provided in the 2011-12 outlook to cover possible exchange rate variability. The three scenarios use annual average exchange rates of USD 0.69, USD 0.79 and USD 0.89 and the associated cross rates against the GBP and EUR. At USD 0.79, the estimated average price for M Bull (270-295kg) is 411 cents per kilogram (+0.1%) and for P Steer/Heifer (270-295kg) 420 cents per kilogram (+0.1%).


The 2010-11 average exchange rate was USD 0.79 which is what the majority of New Zealand beef and lamb was traded under. The three exchange rate scenarios shown in the above charts highlight the comparison with last year’s prices and the large leveraged effect the USD has on the New Zealand beef price to farmers, i.e. moving from USD 0.79 to USD 0.69 (-12.7%) increases the beef price 18.9 per cent.
 

Beef Production
Cattle Overall
In 2011-12 cattle slaughter is estimated to increase 1.7 per cent to 2.31 million head. The increase is driven primarily by an expected increase in cow slaughter (+2.2%) linked to the dairy herd expansion. The 2010-11 export cattle slaughter increased 1.2 per cent to 2.28 million. The increase was from cow and heifer slaughter underpinned by the expansion of the dairy herd.

Carcase Weight
Export cattle weights increase an estimated 2.8 per cent to 258.2kg for 2011-12. Slaughter weights increase across all classes of cattle due to exceptionally good seasonal conditions in most regions.

For 2010-11 export cattle weights decreased 2.7 per cent to 251.2kg. This was underpinned by steer and bulls being slaughtered at lighter weights, indicating leaner seasonal conditions and younger stock in the slaughter mix than in some years.

Cow
For 2011-12, the cow slaughter increases 2.6 per cent to 878,000 head, an increase of 22,000 head on last year. This is linked to the increase in dairy cow numbers, the majority of the increase taking place in the South Island.

For 2010-11 cow slaughter numbers increased 4.6 per cent to 856,000 head on the previous year. This was due to increased slaughter in both Islands particularly the South Island (+10.0%) due to the majority of the dairy herd expansion occurring in the South Island.

Bull
In 2011-12 the export bull slaughter is estimated to remain almost static (+0.5%) on the previous year at 436,000 head. This reflects little change in dairy bull beef calves retained in the previous two years. In 2010-11 the export bull slaughter decreased marginally (-0.5%) on the previous year to 434,000 head.

Heifer
For 2011-12, the New Zealand export heifer slaughter increases (+2.4%) to 419,000 head, up 10,000 on last year. The largest change occurs in the South Island (+6.5%) which follows the dairy cow herd increase in recent years. For 2010-11 the export heifer slaughter increased 2.4 per cent to 409,000 head. This was due to a 3.7 per cent increase in North Island heifer slaughter numbers, off-setting a 1.5 per cent decrease in South Island heifer slaughter.

Steer
The steer slaughter for 2011-12 increases slightly (+0.7%) to 581,000 head. This was due to an increase in finishing cattle held over particularly in the South Island following favourable pasture cover in 2010-11.

For 2010-11 steer slaughter numbers decreased 3.0 per cent to 577,000 head. The largest of these changes occurred in the South Island with a decrease in slaughter to 165,000 (-5.8%) head due to an increase in finishing stock retentions.

February 2012
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« Reply #168 on: February 25, 2012, 03:51:30 AM »

Friday, February 24, 2012
Weekly Cattle Summary
AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian state by the Meat & Livestock Australia (MLA).

Queensland
Numbers jump

As the Roma Store sale and Longreach sales returned to the selling roster, supply at MLA’s NLRS reported markets increased a large 55%. The total yarding was the largest since the middle of November last year, as Longreach, Dalby and the Roma Store sales combined to account for almost 70% of the cattle offered. The forecast rain and recent cheaper prices though meant that across most centres yardings were lower on last week with just Murgon, Warwick and Toowoomba Landmark larger.

Young cattle accounted for 63% of the states throughput with yearling steers the single largest category penned. Restockers and feeders continue to underpin the market, purchasing a combined 72% of the young cattle,, leaving just 28% for the trade. Of the grown cattle, cows represented almost 50% while around 32% were grown steers.

The highlight of the Toowoomba Elders market was a run of good quality cattle from the Goombungee Haden Oakey Beef Classic. Overall though quality was varied and this was reflected in the prices achieved. This trend was also evident at other market as all centres had properly finished cattle through to the plain lines.

A cheaper trend was evident for young cattle. The small run of vealers sold to a mixed trend as the bulk were firm to 13¢/kg cheaper. Light and medium weight yearling steers were 10¢ to 20¢ cheaper as the heavy weights lost up to 5¢/kg. The yearling heifers sold to similar trend as the steer portion with the medium weights suffering the greatest falls. Grown steers were also cheaper by 2¢ to 6¢/kg. Cow were the least affected falling market with most categories firm to 3¢/kg cheaper.

Cheaper trend

The small number of calves returning to the paddock reached 250.2¢ as those to the trade sold closer to 199¢/kg. Medium weight vealer steers to the trade sold from 187¢ to 201¢ as the heifer portion averaged 202¢/kg. A large number of light yearling steers returning to the paddock lost 15¢ to 226¢ as the medium weights made close to 199¢/kg. The medium weights to feeders sold from 203¢ to 215¢ as the heavy weights eased 5¢ to 189¢/kg. A handful of medium weights to the trade averaged190¢ with the plainer lines closer to 167¢/kg. Light yearling heifers to restockers lost 15¢ to 207¢/kg. Medium weights to feeders ranged from 190¢ to 195¢ which was 10¢ to 20¢/kg cheaper. The better medium and heavy yearling heifers to the trade sold mostly in the early to mid 180¢/kg range while the plainer lines made from 158¢ to 170¢/kg.

Medium weight grown steers to feeders eased 2¢ to180¢ as heavy C4 steers to export slaughter dropped 4¢ to 180¢ with sales to 192¢/kg. Bullocks made to 190.6¢ with most closer to 182¢/kg. Light D2 cows averaged 121¢ as the D3s in large numbers lost 4¢ to 143¢/kg. Heavy cows made to 174.2¢ as the D4s averaged 158¢ which was 3¢/kg cheaper.

New South Wales
Numbers fall away

Cattle yardings at the physical markets reported by MLA’s NLRS decreased 16%, with several larger selling centres penning a reduced amount of cattle. Supplies are roughly 20% back compared with the same period in 2011. Numbers in the north of the state remain restricted with the wet summer conditions prevailing. Inverell, Gunnedah and Tamworth supplies were all back, while numbers at Dubbo reduced with western regions now affected by the migrating flood waters. Consignments as CTLX were also reduced, as weekend storms meant numbers fell 18%.

Young cattle numbers were back but quality remained fairly similar to the previous weeks, with plenty of secondary lines available. Restocker and feeder orders were strong on the well-bred pens and the mixed quality section mainly sold to weaker demand. Vealers to the trade were in good numbers, with processors especially keen to purchase vealer heifers.

Grown steers carried good weight, with the strong seasonal conditions and mild temperatures generally allowing for solid weight gains. Cow numbers were back, with the softer prices from the processing sector enticing producers to hold onto their breeders. This is despite demand for manufacturing beef remaining high – with the higher A$ eroding the benefits of this to livestock prices.

Direct to works rates over all cattle categories decreased, with processors across the state showing reduced demand. The tough export trading conditions caused by the higher A$ has mainly impacted grown cattle prices, although young cattle rates were also weaker this week. Processors are reporting that cattle are still in excellent conditions, with higher yielding and heavier carcases.

Demand weakens

The only categories to increase in price overall were vealer steers as they gained 11¢ and yearling heifers which were 14¢/kg dearer. Yearling steers tended to be steady while vealer heifers and cows reduced by 7¢/kg. Grown steers and bullock indicators were also down slightly, as export processor demand remained soft.

The medium C2 vealer steers to trade reduced to 225¢ while restockers paid 239.4¢/kg. Restockers paid up to $860/head or 209.5¢ for heavy C2 steers while feeders paid 206.8¢/kg. Heavy C3 feeder steers were unchanged at 192.3¢/kg. The light C2 yearling heifers to feeders were slightly cheaper 192.6¢/kg. The medium C2 yearling heifers were reduced 7¢ to be 186.9¢ while C3 heifers followed suit to be 189.9¢/kg.

Medium weight grown C2 steers were close to firm at 186.5¢/kg. The heavy C3 steers sold firm at 179¢ while C4 were also unchanged at 182¢/kg. Medium D2 cows were reduced 5¢ to sell at 130¢ while the D3 lines also sold cheaper at 139¢/kg. The heavy D3 cows made 143¢ to be 2¢ lower and the D4 cows finished at 147¢/kg. The few light C2 bulls averaged161.5¢ while the heavy C2 bulls made 157¢/kg cwt.

Victoria
Yardings lower

The decline in quality was one of the main factors behind young cattle selling to a cheaper market. This was despite overall supply falling 19% at MLA’s NLRS reported markets, with competition from all buyers noticeably weaker in the eastern states. There was however a dearer trend for some of the vealer pens, with quality contributing also. The Easter Young Cattle Indicator (EYCI) compared to last week has fallen 8.25¢ and at the completion of Thursdays markets was 381.75¢/kg cwt.

Demand was stronger for the better quality vealers which reached a topped of 246¢/kg. There were some highlights for yearling steers and heifers, as the C muscle steers were firm to 5¢/kg dearer. There were some good results for heifers as a supermarket was more active, which aided price increases of up to 7¢/kg for heifers meeting their specifications. Processor demand was mainly firm with direct to works rates unchanged, with a good amount of cattle already consigned for the coming weeks.

Prices for grown cattle were generally better with one export processor returning to more markets after a lengthy break. Grown steer and bullock prices were mostly dearer, although some discounting occurred for excessive weight, and some manufacturing steers lost ground.

Some discrepancies occurred at cow markets. The general trend was firm to dearer, but Camperdown with over 600 cows penned was cheaper by 8¢ to 14¢/kg as competition was reduced. For most sales the extra competition lifted prices 2¢ to 8¢, as the carcass weight price was estimated to be 278¢/kg cwt.

Prices edge lower

Some excellent quality vealers were made between 210¢ and 246¢ as the C muscle vealers ranged from 190¢ to 230¢/kg. The majority of the light and medium weight yearling steers made 185¢ to 210¢/kg. Heavy weights mainly sold between 175¢ and 198¢/kg. Due in part to supermarket competition, a number of yearling heifers sold from 194¢ to 215¢/kg. However, plainer D muscle yearling heifer prices varied from 155¢ to 192¢/kg.

As the supply of grown steers and cows reduced, demand increased as most of the pens were above average in quality. Heavy, well finished grown steers sold from 175¢ to 194¢/kg. Several pens of excellent quality Angus bullocks at the Leongatha market sold from 180¢ to 186¢/kg. However, with prices varying greatly across the state, most prices ranged from 165¢ to 178¢/kg.

The better quality beef cows made 125¢ to 160¢/kg. The heavy end of the dairy cows ranged from 112¢ to 153¢, and the poorer quality lines sold from 60¢ to 132¢/kg. Across the various cows markets, carcass weight price averages were between 249¢ and 292¢/kg cwt. Heavy B muscle bulls topped at 178.6¢ and averaged 7¢ higher on 162¢/kg.

West Australia
End of split sales

Moist continues remain in the far north of the state with a reasonable wet season continuing. There was some moderate rain recordings also throughout the Pilbarra and Gascoyne regions. Further to the south, the Agricultural regions recorded another week of predominately fine and hot weather with some isolated thunderstorm activity realised in eastern parts.

Feed conditions in the traditional cattle growing areas of the south remain solid with no pressure this year from water shortages. This years calving continues with the first of this seasons calves now on the ground.

There were similar supplies of cattle at all physical markets reported by MLA’s NLRS. Muchea had lower numbers, but this was off set by larger numbers at the Great Southern sales. Pastoral cattle supplies were only moderate and lower than those in recent weeks, which would be expected at this time of year. Vealer supplies improved this week due to improved volumes penned at the Great Southern sale.

As has been the trend this year there were only moderate supplies of trade weight yearling steers and heifers were available, while the supplies of all classes of heavy grown steers and heifers remained limited. Cow volumes were lower with weaker supplies of both local and pastoral grades recorded in physical markets.

Processor demand across the majority of slaughter grades remained very buoyant, while feeder and restocker demand became more selective. There was little or no demand in vealer and lightweight bull categories from the live export sector.

Cow market maintained

Vealer quality and weight were far more mixed. Demand from the feeder and restocker sectors was generally recorded at lower levels comparable to the previous week. Medium and heavy weight vealer steer sales were lower by 3¢ to 4¢/kg, but despite this heavy weight vealer grades enjoyed solid local processor competition. Lightweight vealer steer sales remained similar to restockers, while most vealer heifer sales were lower by between 4¢ and 10¢/kg lwt. Trade weight grass finished yearling trade steer and heifer quality was fair. Demand for these from the local trade remained firm with little or no change recorded in average price levels.

The very limited supplies of heavy grown steers and bullocks remained similar in value across both local and pastoral grades. This was also the case in grown heavy weight heifer classes.

Cow quality was maintained. Demand for cows of all weights and condition scores continued to be very strong from the processing sector. Subsequently the values throughout the cow classes remained similar. Heavy weight bull values were again lower with prices generally back between 5¢ to 8¢/kg.

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« Reply #169 on: March 01, 2012, 07:59:16 AM »

Wednesday, February 29, 2012
Farmers Respond to Indonesian Abattoir Abuse
AUSTRALIA - In response to footage shown on Australian television earlier this week, and notification from the Ministry of Agriculture that they are investigating alleged animal cruelty at two certified Indonesian abattoirs, farming organisations express concern.


WAFarmers President, Mike Norton, said WAFarmers members are committed to maintaining the highest animal welfare standards for all animals under their care.

“The Department of Agriculture, Fisheries and Forestry (DAFF) is currently completing an investigation into the supply chains identified in the footage,” Mr Norton said.

“WAFarmers is not aware of all the details and is awaiting the release of the report from DAFF. At this stage, it is unclear whether the cattle depicted in the vision are Australian cattle or if in fact some of the vision is current footage under the new framework.

“As has been noted, the release of this vision has been strategically timed to coincide with the 1 March implementation date for the Exporter Supply Chain Assurance System (ESCAS), in Tranche 1 markets (Kuwait, Qatar, Bahrain and Turkey).”

Mr Norton said WAFarmers was supportive of the implementation of the ESCAS, which the Australian Government established last year as a new regulatory framework for the export of livestock.

The ESCAS framework incorporates a process for the investigation and management of any instance of non-compliance. ESCAS holds individual exporters and supply chains responsible for animal welfare practices.

Queensland farm lobby group, AgForce also supports a full Federal government investigation.

AgForce Cattle president Grant Maudsley said grass-roots cattle producers remain firmly committed to improving animal welfare standards here and overseas.

“What we saw on our TV screens is unacceptable to the cattle industry and we want to send a very clear signal to the Australian public that such practices need to be investigated and if necessary appropriate action taken,” Mr Maudsley said.

“The footage raises questions that can only be answered by a thorough review so let’s allow that review to take place.”

Mr Maudsley said since the new Exporter Supply Chain Assurance System (ESCAS) system was introduced last year, private exporters and the government have made strong progress in improving animal welfare standards in approved Indonesian abattoirs.

“The live export industry has never pretended it could transform the processing practices employed in a foreign country overnight and there would be challenges,” Mr Maudsley said.

“We appreciate the ongoing support of the Federal government, Agriculture Minister Joe Ludwig and the general public in allowing us the time to effect real change.

The DAFF report, when released, will identify any non-compliance and take corrective action with the supply chain as required.

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« Reply #170 on: March 02, 2012, 01:34:53 AM »

Monday, February 27, 2012
Fewer Farms, Less Land but Greater Production
ANALYSIS - The US agriculture industry appears to be contracting and consolidating with fewer farms, less land devoted to agriculture and a drop in livestock numbers, writes TheCattleSite editor in chief Chris Harris.

Despite the latest cattle inventory report from the USDA, which predicts a 1.4 per cent increase in heifer numbers being held back as replacement for the national herd, the report on farms, land and land in farms from the USDA NASS shows a drop in the total number of cattle operations of one per cent.

And further investigation shows that the number of heifers being retained this year, estimated at 5.21 million, is the lowest since 1986.

This sight rise in the number of heifers that it is believed will be held back could be the start of a rebuilding of the herd, but the NASS figures appear to indicate that the trend is for the opposite to happen because the number of cattle businesses is falling.

Last year there were 922,000 cattle operations with 734,000 beef businesses, down by one per cent and 60,000 dairy farms, down by four per cent.

In the pig farming sector, the number of operations has remained fairly flat standing at 69.100 farms. The vast majority of these farms, 87 per cent, are large scale operations with more than 2000 head.

The total number of farms is down slightly at 2.2 million and although the average size of each farm has risen - up by on average an acre to 420 acres - the amount of land devoted to agriculture and farming in the US has fallen by 1.87 million acres to 917 million.

The drop in the number of farms appears to be in the middle sized farms, with the small farms the very large establishments growing in numbers and the largest farms growing in size dramatically.

The number of farms valued at more than $500,000 grew by 5.9 per cent last year and the amount of land on these farms has grown by 2.5 per cent, while the land in the small and medium scale farms fell by 3.5 per cent.

Against this backcloth of a drop in the amount of land on farms, production is rising, with beef production up and more corn expected this year, indicating a rise in yields and potentially improvements in production systems.

This is all despite there being fewer cattle numbers and lower year stocks of wheat and feed grain.

The World Agricultural Supply and Demand Estimates report recently recorded that "despite expected tight fed cattle supplies, cow slaughter is expected to remain relatively strong during the first quarter and carcass weights are forecast higher" A similar picture has been drawn for pig meat production.


Chris Harris, Editor-in-Chief
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« Reply #171 on: March 03, 2012, 03:10:59 AM »

Friday, March 02, 2012
Weekly Cattle Summary
AUSTRALIA - AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian state by the Meat & Livestock Australia (MLA).

New South Wales
Rain holds back supply
Cattle yardings at the physical markets reported by MLA’s NLRS fell 6%, with a mixed trend recorded between the regions. Heavy, and at times flooding rain, disrupted southern sales later in the week as up to 100mm of rain fell. Seasonal prospects during autumn look excellent, with graziers state wide having a good fodder base and ample water storages heading into winter. Numbers in the north of the state were generally higher, with producers moving cattle after wet weather prevailed for most of February. Cattle supplies in central NSW were firm to higher, with CTLX and Dubbo providing the most cattle.

Competition increased as numbers contracted in the eastern states, with buyers lifting prices in a bid to secure enough supplies. Processors orders were noticeably stronger, with trade and export cattle prices increasing. The rain will also have a twofold effect – firstly by holding up supplies and secondly by ensuring that restocker demand remains prominent. Feeder prices continued to show a slightly softer trend as demand for grain fed meat remains and suitable cattle are in good numbers.

Export processors were prepared to pay more to secure cow supplies, as the higher demand stemmed the current record prices for global manufacturing meat.

Quality is still well above average, with the majority of young and grown cattle showing the benefits of the wet and mild summer conditions. Yearling drafts are showing good weight for their age, whilst the best trade cattle are crop finished or supplementary fed.

Higher prices
Vealer steers selling to restocking and backgrounding orders mainly ranged from 237¢ to 245¢, and were up to 9¢/kg dearer. Medium vealer heifers returning to the paddock were in smaller numbers and averaged 226¢/kg or $528/head. Vealer heifers to domestic trade orders ranged from 220¢ to 229¢, and prices were 3¢/kg higher. Light yearling steers to restockers sold between 215¢ and 230¢, while the pens to feed were on 210¢/kg. Medium feeder steer prices fell 4¢ -to 203¢, while the C3 heavy pens to feed averaged 195¢/kg. Heavy trade steers topped at 220¢ and were 4¢ higher on 197¢/kg. Light yearling heifers were a shade dearer, selling from 190¢ to 201¢/kg. The better quality pens to slaughter generally sold from 187¢ to 199¢, as prices improved by up to 10¢/kg.

The better covered grown steers topped at 196¢ and made 188¢, while the leaner types were 5¢ dearer on 184¢/kg. Bullocks were strongly supplied as prices topped at 195¢ and averaged around 188¢/kg or $1,202/head. Both lean and well covered cow prices showed a dearer trend, as the medium weight pens made from 135¢ to 147¢/kg. The D3 heavyweights were 3¢ higher on 146¢, as the D4 pens averaged 153¢/kg.

Queensland
Supply dips again
Supply across the physical markets reported by MLA’s NLRS fell 34% week-on-week. This reduction was the result of the rain affecting cattle movement which also meant the Longreach sale had to be cancelled. Only Dalby, Mareeba and Roma Prime were able to offer greater numbers this week. When compared to the corresponding period in 2011 supply was down 39%.

The total February yarding at markets reported by MLA’s NLRS for this year was just under 56,000 head which was down 30% on the same period last year. Most of the reduction year on year was due to the Roma Store market able to only hold two sales this February as a result of the flooding.

After a slow start to the year, all processors operated last week, as cattle slaughter reached the highest level since late November. However when compared to the five year monthly average, February 2012 was slightly less.

Quality continued to be mixed and some of the plainer lines were discounted by all buyers with the light end of the young cattle most affected. The properly finished lines including export cattle were able to sell to improved prices. There was a reduction in the number of young cattle offered, yet they still accounted for 57% of throughput. Vealers were in small runs as most young cattle were yearling steers. Similar to last week, restockers and feeders remain the main purchases of young cattle with just 28% secured by the trade. Slightly less grown steers were offered while cows again represented around half of the grown cattle yarded.

Light cattle cheaper
Around three quarters of the vealer steers offered were medium weights returning to the paddock around 230¢ which was almost 20¢/kg cheaper. The medium weight vealer heifers to restockers suffered a similar fall to average 206¢ as those to the trade gained 10¢ to sell at 212¢/kg. Large numbers of light yearling steers to restockers eased 4¢ to 222¢ as the plainer lines made closer to 189¢/kg. Medium weights returning to the paddock ranged from 208¢ to 218¢ as those to feeders made from 190¢ to 200¢/kg. Some heavy weights to feed made mostly in the early 190¢ range with a small number to the trade averaging 195¢ to be 7¢/kg dearer. The medium weight yearling heifers to slaughter jumped 19¢ to average 201¢ as heavy weights gained 5¢ to 189¢/kg.

Limited numbers of medium weight grown steers were offered with most purchased by feeders. The heavy C3 and C4s to slaughter were 8¢ to 14¢ dearer in ranging from 182¢ to 188¢ after topping at 194.2¢/kg. Bullocks lifted 7¢ to average 189¢/kg. Around half the cows offered were medium weights which gained 6¢ to 8¢, as the D3 pens sold closer to 151¢/kg. Heavy D4 cows topped at 176.2c to average 164¢/kg.

South Australia
Similar numbers
A slightly smaller yarding at the SALE started the week in very mixed quality runs of local and pastoral bred cattle. These generally attracted a dearer trend from the usual trade and export buyers. Feeder and restocker buyers were active as they sourced well bred yearling steers at much dearer levels.

After a hot weekend overall quality slipped at Naracoorte and sold to steady trade and export competition. There was an additional Adelaide wholesale order present and an interstate feedlot also sourcing steers and heifers.

Mt. Gambier’s slightly smaller yarding sold to strong competition from the usual SA and Victorian buyers, with some exceptional prices being paid for lightweight vealer heifers. Plain quality cows were keenly sourced by a Deniliquin (NSW) order and a Victorian processor to put out, as heavy rainfall in many regions could see supplies tighten.

Millicent had a larger yarding for its now fortnightly sale, with the Wattle Range Council holding a meeting in a fortnight to discuss the viability of the yards. Only limited numbers of vealers were penned. They attracting spirited bidding up to 235¢ for the steers, and 258¢/kg for the heifers. Most light and medium weight yearling steers finished with feeder and restocker orders, with the heavy weights to processors being dearer. Yearling heifers were also generally dearer to the trade. Grown steers tended to remain basically unchanged despite the small numbers offered. The cows that featured many 1 and 2 scores sold mainly to restocker activity at dearer levels, with processor purchases also at improved levels.

Prices lift
It was a generally dearer week as smaller numbers and some heavy rainfall sparked some intense bidding at times. Vealer steers to the trade sold from 190¢ to 235¢ to be 3¢ to 9¢/kg dearer. Feeders and restockers purchased B and C muscled light and medium weight steers from 168¢ to 232¢ at prices up to 14¢/kg more. Vealer heifers attracted strong demand between 180¢ and 258¢, to be unchanged to 3¢/kg more with isolated sales much dearer. Yearling steer C3 and B muscled sales were from 165¢ to 213¢, or 6¢ to 20¢/kg dearer. Feeder and restocker orders sourced C2 and C3 steers between 165¢ and 220¢/kg at much dearer levels. Yearling heifer C3 and C4 medium and heavyweight sales ranged from 160¢ to 202¢, to be 1¢ to 14¢/kg dearer.

Grown steers sold generally from 174¢ to 198¢ to be basically unchanged, and mostly 310¢ to 350¢/kg cwt. The 1 and 2 score cows to restocker activity sold from 125¢ to 142¢, with processor purchases of 2 to 6 score medium and heavy beef cows from 110¢ to 162¢, or 275¢ to 310¢/kg cwt. Friesian cows sold from 115¢ to 150¢/kg, also at dearer levels and averaged 275¢/kg cwt.

Victoria
Throughput lifting
Numbers at MLA’s NLRS reported physical markets increased 8% with most of the gains in early week markets. The rain over a wide area of the state has meant that processors are expecting numbers to tighten which aided the start of price increases. Rain was heavy at times, with several districts receiving well above average rainfall. However, rainfall in the Western Districts was not as widespread, with the dry seasonal conditions prevailing.

Quality continues to be mixed with some good quality being penned, but there were also plain condition lines available. There were some excellent quality vealers offered, particularly in Gippsland markets. Given the large variations in our weather conditions over the past couple of weeks, dressing percentages are reportedly slipping, further compounding the dearer prices for processors. Grown cattle yardings were slightly lower and competition picked up, with strong global demand for manufacturing beef translating to the dearer cow prices.

As the week progressed, prices climbed between 3¢ and 12¢/kg, although some sales were noted to be even higher. Receiving the greatest gains were grown cattle as all export processors and some wholesalers were actively seeking supply. Feedlots and restockers matched this strong demand in order to ensure they secured sufficient supply, with plenty of suitable cattle available. Following the good falls of rain, it is expected that restocker demand will continue. This trend has also been evident in store sales held over the past week as producers are eager to secure cattle in order to utilize the exceptional seasonal conditions.

Dearer trend
There was a fair percentage of heavy B muscle vealer steers that made from 212¢ to 249.6¢/kg. Secondary lines made mostly between 175¢ and 225¢/kg. The B muscle vealer heifers mostly made around 220¢ as the C muscled lots ranged from 204¢ to 217¢/kg. Some medium weight yearling steers to restockers made from 181¢ to 196¢ as heavy weights to feed averaged 194¢/kg. There were some supplementary fed yearlings to the trade that made between 220¢ and 235¢/kg. Aided by strong supermarket demand, the best heifers sold from 192¢ to 210¢ with most others from 170¢ to 195¢/kg.

Grown steers and bullocks were 4¢ to 12¢/kg dearer. Heavy steers mostly made around 193¢ after selling to 202.6¢ as the bullocks generally traded in the mid to late 180¢/kg range. Restocker activity on cows was stronger, particularly on dairy cows. Medium weight D1 dairy cows gained 7¢ to average 118¢ as the plainer E1s made closer to 111¢/kg. Heavy dairy cows mostly ranged from 122¢ to 143¢/kg. Medium weight D2 and D3 beef cows were 6¢ to 10¢/ dearer in making from 136¢ to 142¢/kg. The heavy D4 cows lifted 6¢ after making to 178¢ to average 152¢/kg. The carcass weight price average was estimated to be 292¢/kg.

Western Australia
Reasonable numbers continue
Warm and predominately fine conditions were recorded in the southern corner of WA. There was some isolated thunderstorm activity, while there were light rainfall bands seen across the south coast and south eastern regions. Forecasts have predicted another week of warm to hot and generally hot weather with temperatures again tipped to rise to very hot levels mid-week. Feed levels remain reasonable but there was been an increase in supplementary feeding in many areas as would be expected in southern WA at this time of year. Early calving continues in the south and is on the increase. Bull sales in the south are now nearing the end for this year and sales thus far have been encouraging with good averages and clearances having been seen. Conditions in the north of the state remain reasonable.

Saleyard numbers remained reasonable this week with the Great Southern sale at Mt Barker returning to a one day sales format with last week seeing the end of the official vealer selling season. Muchea’s yarding continued to have solid supplies of pastoral cattle, while the southwest and Mt Barker yardings were also reasonable for this time of year. Heavy weight steers and heifers continued to be seen in only limited supply, as were trade weight yearlings. Vealer supplies although lower were also fair, while the supplies of cows dipped slightly this week. Trade competition remains solid, while restocker and feeder demand were solid and a feature at all markets.

Vealer demand rises
Vealer quality and weight remain fair but very mixed as we see the end of the sell off of last year’s calves. The end of the two-day sale saw an increase in both feeder and restocker demand throughout all the classes, with all recording higher price levels in favour of the vendor. This week also saw a large line of well bred heifers sold in the Great Southern market. All of these were purchased for breeding by restockers at prices between 244¢ to 268¢/kg. The quality of trade weight yearling steers and heifers remained mixed on the tight supplies available. Local trade and retailer activity and demand remained strong in both heifer and steer classes with grass finished sales firm to slightly dearer comparative to the previous week.

The tight supplies of heavy weight steers, bullocks and mature heifers followed a similar trend as their trade weight counterparts with tight supplies remaining in place. The cow market eased in early weekly sales, but this trend was reversed by the end of the week, where trade demand increases to similar levels seen during last week. Heavy weight bulls recorded a slightly stronger demand this week with increases of up to 8¢/kg.

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« Reply #172 on: March 03, 2012, 03:12:04 AM »

Friday, March 02, 2012
Decline in French Cattle Numbers in 2011
FRANCE - French cattle numbers in November 2011 were down three per cent year-on-year, with both dairy and beef herds back one per cent and two per cent, respectively, reports Meat and Livestock Australia (MLA).

MLA states that a four per cent increase in adult cattle slaughter between January and November 2011 contributed to the decline.

Total cow slaughter increased nine per cent in the 11 months to November 2011, largely due to the culling of beef cows as a result of drought in the spring and lower profitability. The number of heifer replacements aged over two years was down seven per cent, indicating a further decline in cow numbers in 2012. The Institut de l’Elevage has predicted that female beef production is forecast to decline five per cent in 2012.

Male cattle numbers decreased four per cent, and consequently male cattle slaughter is likely to drop in the first half of 2012, with male beef production for 2012 forecast to fall by as much as six per cent year-on-year.

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« Reply #173 on: March 03, 2012, 03:14:18 AM »

Friday, March 02, 2012
Panel Suggests Renewing Beef Exports in India
INDIA - A working group report on animal husbandry and dairying for the 12th Five Year Plan, has recommended lifting a ban on beef exports from India.


The working group on animal husbandry and dairying (2012-17) recently submitted a report to the Planning Commission on the present performance of the livestock sector and its contributing factors including development programmes and policies pursued in the recent past.

It suggested a road map for achieving the targeted rate of growth during the 12th plan while ensuring its sustainability and inclusiveness, reports The Times of India.

Sukanya Kadyan, the United Nations (UN) affiliated International Organisation for Animal Protection's (OIPA) event director in India, flayed the recommendation in the report which says: "There is an existing ban on beef exports. Therefore, it is necessary to revise the EXIM policy to allow beef exports."

The OIPA and even local NGOs like Sukrut Nirman Charitable Trust and People for Animals (PFA), Nagpur, have demanded the report be withdrawn and government should apologize to the nation before 'religious and nationalist people' pour out into the streets in protest.

"Export of beef will not only butcher cows but will also amount to murder of the Constitution and dharma, on which country's foundation has been based," said Naresh Kadyan, India's OIPA representative. The report was more inclined to slaughtering animals rather than protecting them. The matter has been taken up with the President and plan panel, he added.

Quoting directive principles under Article 48 of the Constitution, Kadyan said these clearly prohibit slaughter of cows and calves and other milch and draught cattle. "We cannot tolerate slaughter of cows or its family at any cost," he remarked.

Kannubhai Savadia, chairman of Sukrut, said his NGO has been sending representations to the Planning Commission for the past four years against meat exports, but strong lobby of traders backed by politicians appears to have prevailed upon the government.

Meat exports were basically to boost foreign exchange but now that the country has sufficient forex reserves, why promote such exports, Mr Savadia asked.

"Allowing beef export would lead to massive slaughter of cows, which is already being carried out clandestinely. Our agriculture ministry is supposed to protect and promote cows instead of slaughtering them," Mr Savadia added.

"The government should stop playing with the religious sentiments of the people. The recommendation exposes double standards. On one hand, cows are revered and students are taught about its importance and protection, while on the other promotion of beef exports is spoken about," said Karishma Galani, city chief of PFA.

Allowing beef exports would lead to farm and food crisis. As per the cattle census conducted in 2007, cattle population has already dwindled. "So why is a need being felt to promote beef exports?" Mr Galani asked.

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« Reply #174 on: March 03, 2012, 03:18:29 AM »

Friday, March 02, 2012
Does NZ Dairy Pose a Threat to the US Markets?
ANALYSIS - This week, leaders from nine countries are meeting to discuss the Trans-Pacific Partnership (TPP) free trade agreement (FTA) in Melbourne, Australia. And for the first time in two years access to dairy markets will be on the table.

For the US this could be an issue. Last year President Barack Obama backed full and comprehensive opening of markets in TPP talks, however in the dairy industry there is some resistance to this.

Only last week the US Dairy Export Council sent a letter to US Trade Representative Ron Kirk and US Secretary of Agriculture Tom Vilsack. Despite supporting the TPP, the letter cited concerns about pervasive anti-competitive practices by the New Zealand dairy industry.

The US dairy industry claims that New Zealand has a "smothering domestic monopoly and aggressive pricing in foreign markets".

New Zealand does have a dominant role on global dairy markets, accounting for 35 per cent of global dairy exports. Over the last year, New Zealand dairy exports of milk powder, butter and cheese increased 25 per cent. The US accounts for 12 per cent of global trade in major dairy commodities.

The US Dairy Export Council believes that because of New Zealand's dominant role, it policy allowing anti-competitive practices imposes negative impacts on global competitors. "Such a dominant role affords it unfair advantages over its competitors and distorts international trade in dairy products."

Fonterra, a New Zealand owned co-operative maintains around a 90 per cent market share of NZ produced milk.

The US industry has also said that is will oppose major non-tariff measures that negatively impact the US's ability to fairly compete both at home and abroad.

Simon Tucker, from DairyNZ said that shutting NZ dairy exports out of the US will not help US dairy prospects.

The US is a major player on global dairy markets, and so restricting access to its domestic markets will have effect their access to foreign markets in the long term.

With NZ focusing their dairy marketing efforts on South East Asian and Chinese markets, it seems unlikely that they will dramatically increase sales of dairy products to the US.

Earlier this year, the New Zealand Ministry of Agriculture (MAF) announced proposed changes to the Dairy Industry Restructuring Act (DIRA). Looking at raw milk regulations, MAF has proposed that Fonterra increase the volume of raw milk it makes available to independent processors.

Still under consultation, the proposals hope to increase competition at the farmgate and ensure that sufficient regulated milk is available for dairy food and beverage companies who process raw milk but do not have their own supply.

Fonterra Chairman, Sir Henry van der Heyden, said that the proposal would impose nearly NZ$200 million of additional costs over the next three years alone and work against the co-operative's efforts to reduce the price of milk in New Zealand.

With European dairy quotas being lifted in 2015, an additional nine billion litres of milk is expected to come onto the global market. Kevin Bellamy, senior global dairy analyst for Rabobank, has said that New Zealand has little to fear from this. "Continued strong medium-term growth in world demand for dairy is set to absorb the additional supply."

Charlotte Johnston


Charlotte Johnston, Editor
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« Reply #175 on: March 06, 2012, 08:07:38 AM »

Monday, March 05, 2012
Cattle Outlook: Fed Cattle Prices at New Record High
US - Fed cattle prices set new record highs this week. Sales volume was moderate, writes Ron Plain.
 
Ron PlainThrough Thursday, the 5-area average price for slaughter steers sold on a live weight basis was $128.92/cwt, up $2.45 from last week, up $16.08/cwt from the same week last year, and $1.02 above the old record high set the week ending December 2, 2011. Steer prices on a dressed basis averaged $205.02/cwt this week, up $3.88 from a week ago, up $24.69 from a year ago, and up $1.70 from the previous record also set the week ending last December 2.

The beef cutout value, for both choice and select carcasses, also reached new record highs this week, breaking the old records set just last week. On Friday morning, the choice boxed beef carcass cutout value was $197.83/cwt, up 57 cents from last week. The select carcass cutout was up $1.30 from the previous Friday to $194.71 per hundred pounds of carcass weight.

The choice-select price spread, $3.12/cwt this week, is the tightest since August 19 of last year. The spread is often small at this time of year. The spread was over $10/cwt from mid September until early January, and at times in October and November was above $19/cwt. A small choice-select price spread is sometimes an indicator of weak beef demand.

This week’s cattle slaughter totaled 621,000 head, up 4.9% from the week before, but down 3.7% compared to a year ago. The average dressed weight for slaughter steers for the week ending on February 18 was 854 pounds, down 1 pound from the week before, but up 20 pounds from a year earlier. Weights have been above year-earlier for six straight weeks. Year-to-date beef production is down 4.9%.

Feeder cattle prices were mostly steady to $5 lower at auctions across the country this week. Oklahoma City prices were steady to $2 lower on feeder cattle with the ranges for medium and large frame #1 steers: 400-450# $200-$210, 450-500# $185-$199.50, 500-550# $184.50-$197, 550-600# $178-$196.75, 600-650# $167.50-$182.50, 650-700# $160.50-$171, 700-750# $156.25-$162.75, 750-800# $152.75-$157, 800-900# $138-$155.50, and 900-1000# $135.25-$142.25/cwt.

The April live cattle futures contract settled at $129.95/cwt today, up 45 cents compared to last Friday. The June contract closed at $127.27/cwt, down 48 cents for the week. August fed cattle settled at $129.65 and October at $134.32/cwt.

Feeder cattle futures contracts had modest gains this week. The March contract ended the week at $158.10/cwt, up 43 cents from the previous Friday. April feeder cattle settled at $161.32, up $1.05 for the week. May was 90 cents higher this week ending at $162.85/cwt.

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« Reply #176 on: March 08, 2012, 12:36:54 PM »

Wednesday, March 07, 2012
Kenya Opts for Ayrshire Genetics Over US Holstein
US and KENYA - US cattle genetics producers and exporters will likely experience declining demand and market share in Kenya consistent with the declining farm size of small-scale farmers. Kenyan small-scale farmers, many of whom have one or two dairy cows and a small plot of farmland appear to be opting with greater frequency for Ayrshire genetics.
 

Most analysts expect that the transition away from the Holstein breed will be very slow and correlated to retiring farmers dividing their farms to the benefit of their children.

Government of Kenya (GOK) statistics indicate that cattle producers own about 14 million indigenous (Zebu) and three million dairy cattle.

More than 650,000 small-scale producers own 80 per cent of the dairy cattle, the most vibrant sector for animal-genetics through artificial insemination.

Small-scale producers depend in large part on rain to water and feed for their dairy cows. Reportedly, Kenyan small-scale dairy producers have begun buying Ayrshire genetics, because the breed generally exhibits strong body structure, foraging adroitness and good milk production even during periods of dryness, and good longevity. These advantages become even more important as small-scale farmers divide their plots into even smaller plots.

Anecdotal evidence seems to reinforce Kenyan dairy industry data indicating that these small-scale farmers produce much of Kenya’s milk. During the raining seasons when fodder becomes readily available, Kenya’s countryside and cities overflow with milk.

Milk prices to small-scale dairy farmers plummet. Farmers give their milk away and even retail outlets reduce consumer milk prices. During these periods, schemes that would increase milk processing or otherwise increase consumption appear and then the dry periods return.

As a result of the above mentioned transition to smaller farms, many local analysts expect slightly declining import prospects for US genetics in the Kenyan market (see table below).

Other prominent suppliers to the market, some of whom have strong Ayrshire genetics, include

South Africa, Canada, and the Netherlands.

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« Reply #177 on: March 08, 2012, 12:39:52 PM »

Wednesday, March 07, 2012
CME: Cattle Feeders Looking at Severe Losses
US - The profit pictures for the cattle feeding and farrow-to-finish pig production sectors for this year could hardly be more different, write Steve Meyer and Len Steiner.


Cattle feeders — at least when one considers full yardage and feed markup costs — are looking at severe losses this year while hog producers are looking at their third profitable year in a row. The chart below shows projected breakeven costs through July courtesy of the Livestock Marketing Information Center. As we mentioned, these estimates include full yardage and feed markup costs and thus over-state the cash cost situation of yardowned cattle. But they are still an accurate portrayal of long-run costs and they imply some serious deficits for cattle this summer, especially with the $4-$5 selloff we have seen in recent sessions.

The column chart below paints a very different picture for hog producers. Continued strength in Lean Hogs futures and moderating costs have left expected returns near $20 per head this summer. We say “moderating” costs because they are not expected to be significantly lower for the year than they were in 2011. Our estimates, using closing corn and soybean meal futures prices for Tuesday, are for Iowa farrow-to-finish operations to see breakeven costs of $86.06/cwt carcass in 2012. That is just $0.57/cwt lower than last year. Similar costs and, at least according to Lean Hogs futures prices, slightly higher hog prices should provide profits roughly $2.40 per head higher than in 2011. Our current estimate is for average profits of $7.35/head this year.

Why the difference in performance — especially given record -high fed cattle prices? The answer is found in the intermediary feeder cattle market. Cattle feeders buy virtually all of the animals they feed where farrow-to-finish producers simply transfer pigs internally. The need to buy feeder animals leads to behavior that frequently torpedoes cattle feeding profits as yards chase feeder cattle to the point of bidding away all profits. That is true in spades this year as feeder cattle supplies are very tight. Oklahoma City 600-700 pound feeder steers topped $170/cwt the week of February 24 and remained at $169.61 last week. 400-500 steer calves have eclipsed the $200/cwt. mark the past two weeks in OKC.

Of course, not every hog is produced in a farrow-to-finish enterprise. A substantial number of pigs are traded each week as either weaned pigs (10-14 pounds, roughly 21 days old) or feeder pigs (40-50 pounds, roughly 8 weeks olds), moving from specialized farrowing operations to feeding operations. USDA’s Agricultural Marketing Service reported prices for 5.1 million weaned pigs and 1.2 million feeder pigs last year but more (number unknown) were traded through private treaty and not reported to USDA. A good portion of these pigs are formula priced on spot markets or on deferred Lean Hogs futures with current or deferred corn and soybean meal prices frequently factored in as well. But the spot-traded pigs are subject to the same forces as feeder cattle. Weaned pig prices have been near record high in recent weeks, driven by expected summer profits and, to some degree, death losses related to porcine reproductive and respiratory syndrome (PRRS). These losses have been large this year but whether they are greater than in years past remains to be seen.

ERRATA — Our comment in yesterday’s DLR regarding the capacity impacts of a potential closing of Tyson’s Denison, Iowa beef plant was in error. We misread Tyson’s statement which said “ . . . the Dakota City plant . . . will be able to increase the number of cattle it harvests for processing. However, the change is not expected to increase Tyson’s overall beef slaughter capacity.” The Dakota City plant has, for many years, processed more carcasses than it has produced. Many of those extra carcasses have come from the Denison plant which has very limited, if any, capabilities for carcass fabrication. So, according to the Tyson statement, “The Dakota City plant will no longer need a supplemental supply of beef carcasses from the company's satellite beef plant in Denison. This means that the Denison facility. . . may close sometime in 2013.” Tyson’s statement says its total capacity “is not expected to increase” but the company never says its capacity will actually decrease. The statement regarding carcass shipments seems to indicate that the two changes will more or less offset each other. If that is the case, overall industry capacity will remain the same, maintaining the current over-capacity in the beef processing sector even if the Denison plant is closed in 2013.

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« Reply #178 on: March 09, 2012, 08:07:52 AM »

Thursday, March 08, 2012
2011/12 Cattle Slaughter Figure Adjusted Upwards
EU - The 2011 and 2012 cattle production, slaughter and stock figures are adjusted to a higher level than anticipated in the Annual Livestock Report.


A revision of official census and slaughter numbers in 2010 is the basis for higher estimates of the calf crop and ending inventories in 2011 and 2012, in the USDA GAIN: EU-27 Livestock and Products Semi-annual report.

Slaughter is also revised to a higher level as a result of increased feed costs and high carcass prices throughout the EU.

The 2011 cattle export figure has been adjusted upwards by more than 100,000 head as Turkey lowered the import tariff for live cattle countering the higher Turkish import tariffs for beef.

The 2011 and 2012 beef export figures are adjusted to a lower level accordingly.

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« Reply #179 on: March 10, 2012, 01:08:12 PM »

Friday, March 09, 2012
Weekly Australia Cattle Summary
AUSTRALIA - AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian state by the Meat & Livestock Australia (MLA).

New South Wales
Consignments fall

Cattle supplies at the physical markets reported by MLA’s NLRS dropped 23 per cent, as southern regions experienced heavy rain and widespread flooding. The flooding even led to the cancellation of the Wagga cattle sale, while Forbes agents only penned 100 head. Markets that managed to proceed in the Central West were also limited due to the rain, while yardings in the Northern Tablelands were adequate given the wet weather. The rain also had the effect of further boosting restocker demand, with the rain fostering further optimism in livestock producers.

The seasonal conditions are looking solid heading into autumn, with the mild temperatures allowing pastures to hold on and the rain has meant dams remain full. Producers in some areas will no doubt be looking forward to some clear weather, while others will take time to clean up after the flooding across the Riverina. Cattle quality and weight was generally good, with supplementary fed grown cattle in the best condition. Graziers continue to offer a high level of store young cattle, with the prices paid by restockers seemingly too good to refuse. Prime yearling cattle were in solid supplies, with several heavy yearling steers and heifers included.

Competition in the physical markets increased throughout the state – with southern processors competing strongly in the wake of the cancelled Wagga market. No changes were observed in direct to works rates, with processors hoping supplies begin to open up next week. Feeder buyers remain active, buying a good amount of suitable cattle to place onto feed as the colder months approach.

Prices dearer

Vealer steers returning to the paddock sold in smaller numbers and prices strengthened, with most of the medium weight drafts selling from 247¢ to 265¢/kg. The better covered vealer steers and heifers to the trade were firm to 3¢ dearer as the C2 lines averaged from 223¢ to 232¢/kg. Large samples of lightweight yearling steers to restock were slightly cheaper on 216¢, while the medium weights averaged 214¢/kg. Heavy yearling steers to feed sold at 199¢, and the medium weight pens to feed were dearer on 214¢/kg. The best heavy yearling heifers to the trade sold at 215¢, while the C3 pens averaged 196¢/kg. Restockers secured the lion’s share of light pens at 198¢/kg.

Grown steer prices were upbeat, with export processors and feeders keen to secure supplies. Medium weight pens to feed averaged 187¢, as the heavy C3 pens made 185¢/kg. The better quality C4 drafts topped at 196¢ and averaged 187¢, and the few bullocks retuned 183¢/kg or $1,165/head. Medium weight cows were firm to 4¢ dearer, with the D3 section topping at 161¢ and averaging 148¢/kg. The heavy pens were a shade dearer, with the D4 lines mainly selling at 157¢ and the few exceptional quality C3 pens averaged 162¢/kg.

Queensland
A lift in supply

The supply of stock at physical markets reported by MLA’s NLRS climbed 38 per cent. The return of Longreach into the selling program combined with a lift of 45 per cent at the Roma store sale as the flow of Western cattle returned numbers to normal after the recent flooding across a wide area of inland Queensland.

Quality across most markets was generally fair to good, and buyer representation was excellent with increased numbers of northern New South Wales restocker buyers present in the buying gallery at the Roma store sale. Improved competition from restockers and feeder operators lifted prices on lightweight yearling steers across all markets by 3¢/kg. Vealer heifers experienced a cheaper trend at early week sales, however as the week progressed average prices at Dalby improved 9¢/kg. The stronger feeder support combined with better quality lifted medium weight yearling steers by close to 20¢/kg. This trend also flowed onto the heavy weight yearling steers to feed with one large consignment of 230 head making 195¢/kg, and despite a good supply average prices generally improved. Restockers were very keen to lift breeder numbers and a large selection of lightweight yearling heifers averaged 24¢/kg dearer.

Heavy grown steers and bullocks to export slaughter generally maintained the improved prices of the previous week, however extra Queensland export processor competition at the end of week markets lifted bullock prices slightly. Cow values varied from centre to centre with medium weight lines unable to maintain the improved rates of the previous week. Nevertheless good heavy cows generally attracted strong competition across all markets and remained close to firm.

Feeders dearer

Calves returning to the paddock made to 257.2¢ to average 229¢, and a good sample of vealer steers returning to the paddock also averaged 229¢/kg. Vealer heifers to local and southern processors improved 1¢ to average 213¢ with some to local butchers at 228¢/kg. A large selection of light yearling steers sold to restockers 3¢ better at 225¢ with sales to 246.2¢/kg. The better end of the medium weight yearling steers to feed generally sold in the 220¢/kg range with some to 229.2¢/kg. Heavy yearling steers to feed averaged 1¢ better at 192¢ with a few sales to 200.2¢/kg. The largest numbers of lightweight yearling heifers returned to the paddock at an average close to 220¢ and sold to 244.2¢/kg. A good selection of slaughter classes averaged 200¢ and made to 218.2¢/kg. Medium weight yearling heifers to feed averaged 5¢ dearer at 198¢ and sold to 210.2¢/kg.

Heavy steers to export slaughter averaged 187¢ and sold to 198.6¢, while the bullock portion mostly sold around 190¢/kg. Full mouth bullocks improved in price to average 183¢ and sold to 186.2¢/kg. Medium weight 2 score cows averaged 3¢ cheaper at 132¢ and a large selection of 3 scores averaged 1¢ less at 149¢/kg. Heavy 3 scores averaged 153¢, and the better 4 scores averaged 163¢/kg.

Victoria
Larger yardings

Large rain events affected at markets reported by MLA’s NLRS. However, it was not as expected with a number of markets offering larger supplies as producers looked to take advantage of the improved prices. Overall supply increased 24 per cent. The Goulburn Valley is suffering flooding, and despite this Shepparton still offered a slightly larger yarding. In Gippsland, markets were 20 per cent to 40 per cent larger.

Across all markets saw plainer quality all round. The only exception to this was vealers, particularly in East Gippsland. Parts of East Gippsland have received up to 200mm of rain in the past eight days, which influenced the top quality Cann River vealers to come in two weeks early. Many of these were carrying plenty of weight and topped at 265¢/kg. Dollar per head prices were to $1,200/head, while most sales were closer to $1,000/head.

It is so wet in East Gippsland, that Elders have postponed their annual mountain cattle weaner sales scheduled for next week and moved them to after Easter.

Overall, prices varied greatly and once away from vealers, prices were ranged from 8¢ cheaper to 12¢/kg dearer. Most affected were grown steers and cows. Due to the rain and subsequent flooding in NSW, a number of markets including Wagga were cancelled as transport was impossible, or not allowed. This was a reason behind better competition. Even though some abattoirs in NSW did not operate early in the week, and some feedlots were reluctant to buy because of the rain, prices were still very good.

Mixed trends

All vealer sold exceptionally well. The top quality B muscle lines sold from 220¢ to 265¢, as sales of light C muscle vealers ranged from 215¢ to 255¢/kg. Light and medium weight yearling steers sold to 235¢ with most sales of C muscle steers were from 195¢ to 225¢/kg. Heavy yearling steers sold between 192¢ and 212¢, and most of the better quality heifers ranged from 180¢ to 215¢/kg. After several days of hot weather, and now cool and extremely wet conditions, it was very noticeable the fall in quality. Prices for a range of D muscle cattle, and plainer 2 scores were from 160¢ to 195¢/kg.

Early in the week prices for grown steers and bullocks excelled reaching 208¢/kg. This resulted in a much larger penning at Leongatha, but the quality was notably plainer. Despite this most sold between 184¢ to 198¢/kg. Bullock prices ranged from 162¢ to 190/c, only the best quality and lighter weights selling to the strongest demand.

Cow prices varied between 8¢ cheaper and 6¢/kg dearer. Most sold from 125¢ to 160¢/kg. Carcass weight prices were very comparable to the previous week at an estimated 296¢/kg.

South Australia
Increased yardings

A slightly smaller mixed quality yarding at the SA LE greeted the usual trade and export buyers that also included an additional Victorian order. Feeder and restocker orders were also to the fore on suitable vealer and yearlings at basically unchanged prices. Increased numbers of vealers were yarded, with feeders purchasing most steers, and the trade sourcing all the heifers. Most light and medium weight yearling steers finished with feeders, while the C3 medium and heavyweights were purchased by the trade at much dearer levels. Most yearling heifers finished with the trade at improved prices. The smaller yarding of cows were dearer as processors sourced all available.

Naracoorte had a larger yarding for the first combined sale this year. The saleyards are also undergoing a transition of a new roof and weighbridge. Overall quality was mixed and generally led to a fluctuating priced sale as the usual trade and processor buyers picked their way through. The mixed quality yarding of cows failed to maintain last Friday’s momentum and generally sold at lower levels. With virtually no rain south of Keith and Bordertown over the past few days, supplementary feeding is becoming a must in the mid and lower South East.

Mt. Gambier’s increased numbers sold to steady competition from the usual buying contingent, albeit with a couple very selective with their purchases. Feeder and restocker orders were quite active at generally lower levels. A few lightweight B muscled vealers attracted spirited bidding despite most being generally cheaper. Good quality runs of grown steer and a mixed quality yarding of cows tended to lose ground.

Fluctuating demand

It was a week of fluctuating demand due to not all buyers operating at optimum levels. Vealer steers to the trade sold from 196¢ to 240¢ with a single at 262¢ to be 4¢ dearer for the B muscled, and 5¢/kg cheaper for the C muscled. Feeders and restockers sourced increased numbers from 165¢ to 215¢, with C2 lightweights 4¢ dearer and the medium weights 5¢/kg less. Vealer heifers to the trade sold between 181¢ and 251¢ with isolated sales dearer and the balance generally 4¢ to 15¢/kg cheaper. Feeder and restocker purchases were mainly from 158¢ to 215¢/kg on C and D muscled lightweights. Yearling steer C3 sales ranged from 180¢ to 228¢ with the medium weights 4¢ cheaper and the heavyweights 9¢/kg dearer. Yearling heifer C3 medium and heavyweights sold from 174¢ to 222¢ to be 3¢ to 5¢/kg dearer.

Grown steers and bullocks sold between 170¢ and 197¢ to be unchanged to 3¢ cheaper, and generally 310¢ to 350¢/kg cwt. Most medium and heavy beef cows to processors sold from 125¢ to 160¢/kg. The 2 scores were dearer due to restocker activity and the balance unchanged to 3¢/kg cheaper, and generally 260¢ to 300¢/kg cwt.

West Australia
Long weekend impacts

The southern Agricultural districts suffered a return to very hot conditions with temperatures across the weekend forecast to hit 40 degrees. The hot weather has been accompanied by fine weather with no rainfall recorded over the past seven days. Feed conditions in the south remain solid for this time of year with only limited supplementary feeding activity currently being under taken. The majority of the northern and eastern pastoral regions continue enjoy reasonable seasonal conditions with further thunderstorm activity recorded throughout these regions over the past week.

Physical market numbers were lower and impacted by the public holiday Monday. This resulted in the Muchea’s sale being moved to the Tuesday and the subsequent cancellation of the south western sale, which happens in these circumstances. Muchea’s numbers were considerably lower, while the Great Southern sale at Mt Barker saw its volumes remained similar to recent week’s levels.

Muchea’s smaller yarding had very healthy percentages of mixed quality ex-pastoral cattle that continue to be consigned from southern agistment areas, rather than being consigned direct from pastoral runs. As has been the case in recent times the supplies of prime heavy and trade weight steers and heifers remained tight. Cow numbers remained fair, while there were again reasonable volumes of vealers recorded. Quality at both markets was very mixed throughout the classes. Generally processor demand remained buoyant in most classes with restockers and feeders also remaining active in the market.

Cow market falls

Despite being lower than what was offered during last month there was once again a reasonable supply of vealers available. Quality remained fair with a reasonable spread of numbers still recorded throughout the classes. Heavier steer and heifer vealers enjoyed a slight increase in feeder demand that lifted price between 2¢ and 4¢/kg. Medium and light weight classes struggled to maintain their previous price levels due to a more subdued restocker demand on a more mixed and generally plainer quality in these grades. The numbers of prime trade steers and heifers continued to be limited with quality mixed. Prime better muscled drafts received solid and firm local processor competition, while mixed quality grades recorded discounting with most averages in line with the previous week’s quotes.

Heavy weight steer and bullock prices remained similar on limited supply, while heavy weight grown heifer sales were considerably lower due to a weaker processor demand. This was also the case in cow classes whereby processor inquiry dropped sharply and continuously as the week progressed. This was also the case in heavy weight bull classes, while lightweight received some live export interest.

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