World Cattle News:

[Mustang Sally Farm]

Live Export Debate - What's Best for Animal Welfare?
11 October 2012


ANALYSIS - Pressure is mounting in Australia to end the live export trade, but would this have an ever more devastating effect on animal welfare, asks Charlotte Johnston, TheCattleSite editor.

This trade brings in A$1.8 billion annually to the Australian economy, but also creates over 13,000 jobs.

The increase in support for a live trade ban has been fuelled by a number of welfare issues in importing countries.

The situation began, when in April 2011, undercover footage of Indonesian slaughter houses showed severe mistreatment of Australian cattle.

Earlier this year, a combined industry and government effort developed the Exporter Supply Chain Assurance System (ESCAS) - which demands exporters supply evidence that livestock will be handled in accordance with internationally accepted World Organisation for Animal Health (OIE) standards.

Despite this, unrest amongst the public continues.

In the last week, hundreds of the public have gathered across the country to protest against live exports, after video footage showed Australian sheep being inhumanely killed in Pakistan.

Thirty thousand cattle have been held in an Egyptian feedlot for almost two months after some were found to have hormone growth promotant implants. This week, Egyptian authorities have now decided that cattle without implants can be processed immediately, and those with implants can be slaughtered 60 days after the implants have been removed.
 
“Forcing Australia out of the live trade would be counter-productive, cutting off a valuable source of protein to the world and undermining attempts to improve animal welfare standards in these developing nations,” said Victoria Farmers Federation Livestock President, Ian Feldtman.

 However, the World Society for the Protection of Animal has called on the federal government to back the immediate construction of a large processing plant in North Australia in a bid to reduce live exports.

A report due to be released by the animal welfare organisation is expected to focus on the benefits for cattle producers and local communities in switching to an industry centred on producing frozen and chilled "boxed" beef for export.

 Whilst animal welfare groups, the public and politicians call for a live export ban, the larger part of the Australian cattle industry is standing firm. AgForce General President, Brent Finlay, said despite some isolated incidents in the Middle East, Australia was helping to ensure positive welfare outcomes for exported stock and must be involved in the trade to continue this work.

“Destructive behaviours aimed at shutting down the industry will only end in countries with little regulation filling market requirements, ultimately creating broad scale animal welfare disasters.”

The debate is a tricky one, is the job Australia is doing of improving animal welfare good enough? If they weren't to do, who would, and would the prospects for animal welfare deteriorate?






Charlotte Johnston - Editor

[Mustang Sally Farm]

CME: World Beef Output to Increase
19 October 2012

 

US - USDA’s Foreign Agricultural Service released its semiannual Livestock and Poultry: World Markets and Trade circular on Thursday. This report refreshes FAS’s outlook for production, consumption and trade of meat and poultry products and provides FAS’s first estimates for 2013, write Steve Meyer and Len Steiner.

 The report can be found at http://www. fas.usda.gov/livestock_arc.asp. Some highlights are:
 
World beef output will increase by 0.6% in 2013 to 57.525 million metric tons (MMT). This is the second straight year for a slight increase in beef production. It is driven by significant growth of India’s beef output.

India will have an estimate 327.3 million cattle within its borders on January 1, swamping number two Brazil’s 203.715 million and the 89.7 million that will be in the U.S. on that date.

The U.S. will remain the world’s largest beef producing country in spite of an estimated 3.3% decline in output. FAS predicted that U.S. production in 2013 will be 11.273 MMT, a figure that is over 7% lower than the most recent peak of 12.163 MMT in 2008. Brazil will stay in the number two position with its output rising 1.8% to 9.375 MMT in 2013.

?? India is the fourth largest beef producer but the largest exporter of beef in the world. FAS cites “Rising demand for low-cost product fueled by many smaller, emerging and price sensitive Asian and Middle Eastern markets” as the driving force behind India’s export success. India’s 2013 production is forecast to be 4.168 MMT, up 14% from 2012 and up an astonishing 63% from 2008. The country will export over half of that total (2.16 MMT) in 2013, a figure that represents nearly 25% of all world beef trade. India will become the world’s largest beef exporter this year and extend that leading position next year, according to FAS.

U.S. beef exports are forecast to decline again in 2013. This year’s expected 1.124 MMT is down 11% from last year’s record high. FAS predicts we will export 1.111 MMT next year, 1.1% less than in 2012.

U.S. beef imports are forecast to grow in ‘13 by over 11% to 1.188 MMT. That level would represent 10.5% of total U.S. beef consumption next year. FAS predicts we will import 9.2% of total beef consumption this year.

Global pork output is forecast to grow by a modest 0.3% to reach 104.7 MMT in 2013. That figure, though, is nearly 7% higher than in 2008 in spite of significantly higher feed costs.

China, with nearly half of the world’s total pork production, is the main driver of the global increase. It’s output is expected to increase by 1% to 52.0 MMT. FAS points to “relatively” slow economic growth, high costs and tight producer margins as the reason for the “anemic growth.” It follows increses of 5.8%, 4.4% and 3.8% in 2008, 2009 and 2011. China’s output dropped 3.1% in 2010 due to death losses from disease and natural disasters. That reduction was a major driver in China’s larger 2011 imports.

U.S. pork production is forecast to decline by 1.3% in 2013 to 10.440 MMT. The U.S. will remain the second largest porkproducing country. The EU-27, of course, produces more pork as a block than does the U.S.

EU output is projected to fall marginally (0.5%) next year. FAS notes that more stringent EU animal husbandry regulations are “resulting in a restructuring of the industry with the most inefficient commercial farms exiting production.” Look for more from the FAS Circular in Monday’s DLR.

[Mustang Sally Farm]

All Cattle Price Categories Slide
26 October 2012




 
AUSTRALIA - All cattle categories declined this week, with restockers being very selective in their purchases, as overall quality at markets continues to wane, according to Meat and Livestock Australia.

Feeder buyers have also been subdued, as good numbers of plain heavier lines continue to enter the market in the south, while the north has seen quality slip over the past few weeks. Processors in Queensland remain active across the grown cattle categories, paying higher prices to secure finished cattle.
 
The national trade steer indicator was back 8¢ on last week, averaging 348¢/kg cwt, while medium steers dropped 11¢, to 319¢/kg cwt at the close of Thursday’s markets. Heavy steers were unchanged on 335¢/kg cwt, as cows fell a further 2¢ on last week, averaging 273¢/kg cwt. Feeder steers slipped 3¢, to finish the week averaging 184¢/kg lwt.

[Mustang Sally Farm]

Friday, November 02, 2012
Strong Opportunities for US Beef Exports to Russia
RUSSIA - Russia’s demand for US meat is very strong, with US beef imports increasing eight per cent compared to last year's figures.
 

Thad Lively, USMEF senior president for trade access says that Russia has imported nearly 117 million pounds of beef this year, with a value of $214 million.

Pork exports were 30 per cent higher than a year ago in volume (140.4 million pounds) and up 22 per cent in value ($183 million).

Russia has invested heavily in its pork industry, with the stated objective of reaching self-sufficiency in pork production in the near future. But Mr Lively noted that controlling African swine fever (ASF) is one of many challenges making this an elusive goal.

Mr Lively said that Russia made significant market access concessions for US beef and pork as part of its negotiations to join the World Trade Organisation (WTO), including a larger tariff rate quota for US beef muscle cuts and reduced duty rates for pork imports. But he says WTO membership has not eliminated all barriers facing US meat as it enters Russia, so significant work continues on approval of US processing plants, consistent application of veterinary standards and other key issues.

[Mustang Sally Farm]

Beef Showcase in Hong Kong
13 November 2012




 HONG KONG - Secretary of State Owen Paterson is leading a delegation from the British beef industry to Hong Kong next week as work continues towards the "normalisation" of trade with the UK.
Centrepiece of the trade trip will be a reception at the Hong Kong Jockey Club on November 16 to celebrate a historic agreement earlier this year allowing greater meat trade between the nations.
 
And it will be used to showcase British beef to potential importers.
 
The agreement, signed some months ago but now translating into sales on the ground, much of it in the hotel and foodservice sector, allows beef rib cuts and other specified bone-in products, except vertebral column cuts, from cattle less than 30 months. Boneless beef from cattle of all ages is already exported there. The import of ground boneless beef, excluding offal from cattle less than 30 months old, resumed in June 2009, after exports from the UK were banned in 1996.
 
"This reception is an acknowledgment of the level of co-operation we have received from the Hong Kong authorities, the first destination in the Far East to make such a move," said Peter Hardwick, head of trade development with EBLEX, which organised the delegation.
 
"It is also about connecting potential importers in Hong Kong with our industry and showcasing the quality beef we produce here in Britain.
 
"Our ultimate aim in the normalisation of the beef trade between Britain and Hong Kong and this is an important step. The Secretary of State leading the delegation is an indicator of how much we value the support we have had from the Hong Kong authorities and the importance we attribute to this market."
 
During the visit, the Secretary of State will meet Hong Kong officials involved in the negotiations and learn more about the market potential in Hong Kong. There are significant additional opportunities, for instance in Fifth quarter products, if trade in additional cuts can be licensed.
 
On his way to Hong Kong, the Secretary of State will attend the FHC Food and Drink event show in Shanghai to support British food exports.

[Mustang Sally Farm]

Canadian Beef Supplies Remain Tight
29 November 2012

 
CANADA - Beef supplied are down on for the period 30 September to 3 November by nearly 50 per cent on the same period a year ago, reports Meat and Livestock Australia.

Canadian beef supplies are expected to remain very tight, particularly in the short term, with cow slaughter for the period 30 September to 3 November totalling just 28,208 head - 48 per cent lower than the same period a year ago and 24 per cent below the five-year average (Steiner Consulting).

Cow slaughter rates have declined sharply, as reportedly good pasture conditions have allowed producers to retain females, accentuated by very strong North American calf prices.

 Additionally, Canadian October cattle on feed inventories (246,390 head) are 22 per cent below year ago levels (as a consequence of high feed grain costs), with steers (164,960 head) slipping 12 per cent, and more strikingly, heifers (81,430 head), falling 37 per cent year-on-year.

 The combination of a lower cow slaughter and reduced heifers on feed indicates substantial herd rebuilding activity across Canada.

 Consequently, Canadian traders continue looking off shore to maintain supply, with total imports for the first ten months of the year 29% greater than the corresponding period last year, totalling 35,652 tonnes swt. Canadian issued permits to Australia as of 23 November are up 47 per cent year-on-year to 13,056 tonnes swt.

[Mustang Sally Farm]

Beef Sales Hoped to Strengthen through Ranchers Project
05 December 2012


CANADA - The Highway 16 region has seen the launch of a Beef Value Chain Initiative that hopes to give ranchers more opportunity to showcase their quality beef in the marketplace.

The Beef Value Chain Initiative comes from the 'Beyond the Market Project' and is a pilot project that will provide ranchers in the region the opportunity to finish, process, and market their beef locally, resulting in more dollars into their business and into the local economy.

 To support this, the initiative will develop a practical local value-added business model for the beef industry across the Highway 16 region.

“The beef industry is a complicated one,” says Program Coordinator Jillian Merrick.

 “There are dozens of steps involved in producing beef before it ever reaches your plate. From breeding, to birth, to weaning, then backgrounding, finishing, processing, butchering, packing, transportation and finally marketing and sales – the system adds more value and complexity each step of the way.”

Jillian Merrick is confident that the opportunities are real. “The region’s ranchers produced over 30,000 beef cows last year. Our pasture lands are incredibly rich and productive. We have three provincially inspected meat processing facilities in the Highway 16 region and a butcher shop in almost every town. At the same time, we have restaurants, resource camps, specialty retailers, fishing, hunting and skiing lodges, and cafeterias all across the region that use beef."

 "What is needed is a major shift in the business practices and the establishment of direct rancher-to-buyer relationships. We aim to assist with that process.”

 “The Beef Value Chain Initiative will strengthen the industry and benefit our hard-working ranchers and processors,” said Bob Zimmer, Member of Parliament for Prince George-Peace River and Member of the Standing Committee on Agriculture and Agri-Food, on behalf of federal Agriculture Minister Gerry Ritz.

“It increases the industry’s ability to provide Canadian families with quality beef to serve at their tables.”
 

[Mustang Sally Farm]

MLA Report Higher Prices and Numbers Tuesday
11 December 2012




 
AUSTRALIA - Tuesday saw backgrounders prices lift slightly with light yearling heifers 12¢ a kilo up at Toowomba with fat cattle prices unchanged making the Eastern Younng Cattle Indicator (EYCI) relatively unchanged at 331.25¢/kg cwt.

Throughput at Toowoomba was relatively steady with the usual buyers operating across all categories, reports Meat and Livestock Australia.

 Calves to restockers topped at 209¢ to average 198¢, while light yearling steers to feed were 12¢ dearer on 191¢/kg. Light yearling heifers to slaughter generally sold from 172¢ to 187¢/kg. Heavy grown C4 steers averaged 184¢, up 5¢ on average, while heavy D4 beef cows topped at 162¢ to make 159¢/kg.

 Numbers at Wagga increased with quality mixed across all secondary grades. Medium weight C2 vealer heifers slipped 3¢ on average making 162¢, while heavy yearling steers to feed topped at 178¢ to make 173¢/kg. Medium yearling heifers to feeder orders averaged 2¢ higher on 162¢ while heavy C3 lines to slaughter were relatively unchanged on 155¢/kg. Light C4 grown heifers sold from 142¢ to 172¢, while heavy D4 cows topped at 138¢ to finish on 129¢/kg.

 Consignments at Tamworth lifted slightly, with good numbers of yearlings offered. Light yearling steers returning to the paddock were 5¢ dearer on average making 194¢, while the heifer portion generally sold from 140¢ to 160¢ for light weight restock orders. Heavy grown steers were relatively unchanged on 175¢, while C3 light grown heifers to slaughter were steady on 155¢/kg. Medium D2 cows to slaughter topped at 132¢, averaging 115¢, while heavy D4 lines slipped 2¢ on average to make 137¢/kg.

 At the close of Monday’s markets the Eastern Young Cattle Indicator (EYCI) was relatively unchanged on 331.25¢/kg cwt. Trade steers slipped 2¢ on 182¢, while feeder steers were up 1¢ to make 178¢/kg. The medium steer indicator finished on 170¢, up 2¢, while heavy steers fell 1¢ to finish on 175¢/kg. Medium cows were unchanged on 127¢/kg.

[Mustang Sally Farm]

CME: Lower Feedlot Cattle and Sow Slaughter Numbers Steady
20 December 2012

 

US - Analysts expect USDA’s December Cattle on Feed report, due out on Friday afternoon, to continue to pattern of the past few months, indicating lower cattle numbers in the surveyed feedlots, write Steve Meyer and Len Steiner.

 As has been the case with the last several reports, most attention is likley to focus on the placement number given the U.S. pasture and range conditions and progressively smaller calf crops. Relative to recent months, analysts expect this month’s number to be closer to the 2012 level.






Should the analysts’ average prediction of 93.4 per cent of year-ago level be true, it would imply the smallest year-on-year reduction in both actual numbers and percentage since June.

For some time, we noted that this year’s numbers were being compared to unusually large numbers last year but it is important to note that last year’s placements in both October and November were VERY close to the 5-year average, meaning they, though large, were not unusually so.

 Further, the range of the analysts’ estimates is not large — at least for this number, which sometimes sees widely divergent predictions — suggesting some degree of consensus for November placements. The estimate range implies placements of 1.7 to 1.8 million head.

Should the average estimate for year-on-year change in feedlot inventories (93.4 per cent) be true, the December 1 number will be 11.259 million head, the smallest December number since 2002. And, where placements got closer to year-ago levels October and are expected to do so again in November, the feedlot inventory is getting farther and farther from the levels of both last year and the 2006-2010 average.




The reason, of course, is that the inventory of cattle in these lots is the cumulative result of these smaller placemnts. It is important also to note that the first of those smaller placements versus one year earlier occurred in July and those cattle will not, for the most part, be in the slaughter mix until January or later. Bottom line: We still haven’t seen the impacts of these lower feedlot numbers in steer and heifer slaughter.




Look for a recap of the Cattle On Feed report in Monday’s DLR. Where is the U.S. swine breeding herd headed? That is a question on many minds as we approach the next quarterly Hogs and Pigs report on December 28.

 The 2012 drought and sharply higher feed costs had many expecting a significant liquidation last summer but the data certainly do not suggest a large shift and may not suggest much of a change at all relative to September 1 or next year.

Chicago-based analyst Kevin Bost, in his excellent weekly Meat Markets Under a Microscope letter (Click here to see samples) pointed out that sow slaughter as a percentage of the breeding herd was quite high in September, moderated in October, basically matching the five-year average for the month, but then fell to its lowest November level since 2008. “Wonder of wonders, this pattern coincided with the hog market’s price performance,” wrote Bost. And we heartily agree.

As cash hogs and Lean Hogs futures recovered from the “get them off feed” supply flood of August and September, producers’ outlook for the future improved — as well it should have with a number of 2013 months turning profitable and forecast losses getting as low as $1.54/head.

That figure has gotten less favorable in recent weeks but this is usually the worst of cash hog prices and as cash improves so will futures. Bost goes on to say he expects the breeding herd to be down 0.3 to 0.4% in the December report.

 We think that is a pretty reasonable number at this point. USDA called Dec-Feb farrowings at 98.5 per cent of last year, a figure that Bost thinks looks reasonable. But will a Dec 1 herd only slightly smaller than last year result in farrowing reductions that large from March forward? That seems a stretch and, should litters continue to grow 1-2 per cent/year, there may be plenty of pigs next fall.

[Mustang Sally Farm]

Superbug MRSA ST398 Found in British Cattle
27 December 2012


 UK - The Soil Association is calling for the government to investigate British farm animals carrying MRSA (Methicillin-resistant Staphylococcus aureus) and act to stop the overuse of antibiotics in farming.

This follows new research from the University of Cambridge revealing the first cases of MRSA ST398 have been found in UK livestock.

First found in pigs in the Netherlands in 2003, MRSA ST398 has since become epidemic in European and North American pig populations and has spread to poultry and cattle.

It has not been found in British food animals before. However, very little testing has been carried out compared to other EU countries.

The superbug can cause serious and occasionally deadly infections in humans and is becoming a cause of mastitis in cows.

The high level of antibiotic resistance makes the infection difficult to treat, and the Cambridge scientists say their finding is therefore ‘of significance to both veterinary and human health’.

Scientists tested 1,500 samples of bulk milk and found seven cases of MRSA ST398 in milk from five different farms in England, Scotland and Wales.

Although there is no direct threat to human health from consuming milk, because pasteurisation will kill the bacteria, research from other countries has shown farmers, vets and abattoir workers are at increased risk.

In the Netherlands, ST398 now accounts for 39 per cent of human MRSA cases.

 Although this study only tested bulk milk, it is thought likely many calves on affected farms will also carry MRSA ST398.

According to recently published Defra research, over three quarters of British dairy farms feed waste milk containing antibiotic residues to calves.

This is milk produced during the withdrawal period, after a cow has been treated with antibiotics, and is legally unfit for human consumption.

 The Department of Environment, Food and Rural Affairs (Defra) showed that 21 per cent of waste milk samples contained residues of cefquinome, a modern cephalosporin.

Modern cephalosporins are the antibiotics most suspected of favouring the growth of MRSA ST398. Waste milk can also contain residues of other antibiotics associated with MRSA spread.

 If calves are affected, then any meat from these animals may also be contaminated.

The emergence of MRSA ST398 in cattle could also lead to British pigs and poultry becoming affected, if this is not already the case.

Defra has refused to test British poultry becoming affected, if this is not already the case.

The Soil Association said that Defra has refused to test British poultry for MRSA, despite the Soil Association calling for such surveillance since 2007.

 Richard Young, Soil Association Policy Adviser said; “This should be a wake-up call for Defra. The European Food Safety Authority recently called on all Member States to carry out regular monitoring of poultry, pigs and dairy cattle for MRSA, but unlike other countries, the UK continues to ignore this request."

"Defra must also urgently deal with the problem of waste milk containing high levels of antibiotic residues being fed to calves. There is strong evidence this has contributed to the spread of other superbugs, like ESBL E. coli, and it is also likely to make the MRSA problem on dairy farms much worse," said Mr Young.

 Mr Young added that much stricter controls on modern cephalosporins is required.

These antibiotics are 'critically important' in human medicine as classified by the World Health Organisation, yet they continue to be used routinely on many cattle and pig farms.

 A 400 per cent increase in the use of these antibiotics on British farms over the last decade and similar increases abroad have been linked to the growing MRSA problem in livestock.

Recent Dutch research has shown that people living in rural areas of high livestock density are also at increased risk of becoming carriers of MRSA ST398. This found that a doubling of the density of cattle increased the odds of being a carrier by over 75 per cent. Occasional hospital or nursing-home outbreaks of MRSA ST398 have also occurred in the Netherlands, showing that the bacteria can spread from person to person.

 Although Cambridge scientists had previously found a different type of MRSA in British cattle, the emergence of MRSA ST398 has potential to spread far more widely in British farm animals, based on what has occurred abroad.

 This is partly because the ST398 strain has the ability to acquire much higher levels of antibiotic resistance than most other MRSA strains, and the seven cases found in this study were resistant to between three and five families of antibiotics. Cases abroad have been resistant to up to 11 families of antibiotics.

 A small number of cases of MRSA ST398 infections in humans in Scotland have already occurred, and earlier this year it was revealed in the minutes of a Defra meeting that human cases have also occurred in Northern England, but no details were provided.

 Although MRSA ST398 can cause serious infections in humans, it is currently considered to be less virulent than ordinary hospital MRSA.

 However, scientists have warned that it has a greater ability than most strains for acquiring new virulence genes, which would make it a greater threat to humans, and very recent American research has found the first-ever cases of MRSA ST398 in pigs with the highly virulent PVL (Panton-Valentine leukocidin) gene.

 PVL MRSA can sometimes cause necrotising fasciitis, a flesh-eating disease, which can require infected tissue to be cut away.

[Mustang Sally Farm]

Animal Welfare Reforms to Cover 100 per cent of Australia's Livestock Trade
31 December 2012


AUSTRALIA - The world’s most stringent live export regulations will apply to all exports of Australian livestock for slaughter from tomorrow.

Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig, said Australian exporters will have to meet Exporter Supply Chain Assurance System (ESCAS) requirements in all existing and new live export markets.
 
The introduction of ESCAS to the third and final tranche of live export markets on 1 January is on schedule and in line with the Government’s commitment to reform the trade and forge a strong future for the jobs and communities it supports.
 
“From tomorrow, one hundred percent of Australia’s live feeder and slaughter export markets will be covered by the Governments reforms, cementing Australia’s reputation as a world leader in animal welfare,” Minister Ludwig said.
 
“The introduction of ESCAS across our entire live export trade means exporters will be required to ensure all animals exported for slaughter purposes are treated in line with international standards.
 
“That means better animal welfare outcomes as well as a sustainable long term future for the billion-dollar-a-year livestock trade and the livelihoods that rely on it.”
 
ESCAS strictly regulates the treatment of livestock and sets a benchmark that requires exporters to take responsibility for the welfare of animals throughout their supply chain.
 
Before an export company is granted permission to ship livestock for slaughter purposes overseas, it must demonstrate livestock will be treated at, or better than, internationally recognised animal welfare standards.
 
“ESCAS ensures transparency in the live export trade. The Government can hold exporters to account for the welfare of the livestock, and take action if required,” Minister Ludwig said.
 
“The blanket introduction of ESCAS from New Year’s day sends a strong message about how the Australian industry and community expects exported livestock to be treated now and into the future.
 
“We have made important progress since these reforms were first introduced. Our ongoing involvement in the trade gives us an important opportunity to help improve animal welfare in importing countries”.
 
Since the introduction of ESCAS, over 1.3 million sheep, 530,000 cattle and 11,000 goats have been exported.
 
Regular publishing of the independent audit report information on the Government’s website allows all Australians to see how the industry is performing. Following the implementation of the new ESCAS regulations in Indonesia in July 2011, ESCAS has been introduced in three tranches throughout 2012. The first on 1 March saw 75% of the trade covered, and the second from 1 September saw 99% of the trade covered.

[Mustang Sally Farm]

Monday, January 14, 2013
Poland Bans Ritual Slaughter of Animals
POLAND - As of 1 January, 2013, Poland banned the ritual slaughter of animals without prior stunning.
 


The ban stems from the Polish Constitutional Court decision that the existing regulation regarding ritual slaughter is contrary to Animal Protection Act and Polish Constitution.

The Animal Protection Act requires the stunning of animals before slaughter and does not allow for any exception to this rule.

The 2004 Regulation allowed for the ritual slaughter of animals by bleeding without prior stunning. As a result of the court’s ruling, the challenged Ministry of Agriculture regulation expired as of 31 December, 2012.

[Mustang Sally Farm]

Australia - Record beef exports

21 Jan 2013


Department of Agriculture, Fisheries and Forestry (DAFF) figures confirm a two per cent increase on 2011 figures breaking the record set in 2008 (957,482 tonnes swt), according to market analysts at Meat and Livestock Australia.

 

 




While 2012 ended up as the largest volume year on record, the final result was largely in contrast to the very tough trading conditions for exporters throughout the year.




The high A$, weak consumer demand in Japan and Korea (especially for the first half of the year) and increased competition in many markets impacted export returns, especially for chilled beef.

 

However, there were also several high points for the trade, including historically high global prices for manufacturing beef, a 33 per cent year-on-year increase in shipments to the US (224,007 tonnes swt), along with record shipments to China (32,905 tonnes swt, up 324 per cent), Taiwan (38,281 tonnes swt, up 4 per cent) and Singapore (14,087 tonnes swt, up 46 per cent).




On the supply side during 2012, a surge in slaughter and beef production during the final three months of the year facilitated an increase in beef exports, assisted by lower cattle prices – largely due to the rapid drying off in seasonal conditions.

 

Illustrating the fast finish to the export year, this year had the highest December on record, at 86,229 tonnes swt – 5 per cent higher year-on-year.




Despite contracting 10 per cent year-on-year, to 308,537 tonnes swt, Japan easily remained Australia’s largest beef export market, taking 32 per cent of all beef exported.

 

The weak Japanese economy, faltering consumer demand, the high A$ and increased competition from the US all combined to affect Australia’s trade throughout 2012.




While the US was the second largest market for the year, at 224,007 tonnes swt, the 33 per cent year-on-year increase was off a very low 2011.

 

Putting 2012 in context, Australian beef exports to the US between 2000 and 2010 averaged 312,000 tonnes swt, peaking at a record 397,678 tonnes swt in 2001 (when the A$ traded around 50US¢).




The rise in Australian exports to the US in 2012 was largely due to a reduced supply of manufacturing beef in the US, record high prices (in US¢/lb terms) and reduced buying from Russia (for manufacturing beef).




After a very slow start to the year, Australian beef exports to Korea finished the year at strong levels. Exports for the year totalled 125,957 tonnes swt – down 14 per cent year-on-year, after being down as much as 32 per cent after the first six months of the year.




The combination of increased Korean beef and pork production, competition from the US and a slowing Korean economy impacted demand for Australian beef throughout the year.




A 4 per cent increase in exports to Taiwan throughout the year, to 38,281 tonnes swt, saw it move back to being Australia’s fourth largest export market in 2012.

 

However, its move up the rankings was largely due to significant declines in exports to Russia (34,954 tonnes swt, down 37 per cent) and Indonesia (27,096 tonnes swt, down 32 per cent).




The fall in exports to Russia was primarily due to a loss of price competitiveness of Australia beef, as currency movements resulted in Brazilian beef being much more attractive for Russian importers.

 

The 32 per cent decline in beef exports to Indonesia for the year was largely due to the limited availability of import permits.




Rising very quickly throughout 2012 to challenge Taiwan and Russia, and surpass Indonesia, in terms of volume, was China.

 

Assisted by strong demand and reportedly tightening local supplies, Australian exports to China exceeded all expectations during the final five months of the year, bringing the 2012 total to 32,905 tonnes swt – up 324 per cent on the previous year.




An increase in access for Australian grainfed beef contributed to a 16 per cent rise in exports to the EU for the past year, totalling 14,087 tonnes swt. Despite a 3 per cent year-on-year decline, exports to the Middle East largely consolidated on the growth of previous year, totalling 31,325 tonnes swt.




Overall, Australian beef exports for the year continued the trend of the past five years, with a record percentage and volume of beef going to markets other than the big three of Japan, the US and Korea.

 

In 2012, 31.7 per cent of total exports, or 305,277 tonnes swt of beef went to markets outside of the big three, compared to 30.8 per cent in 2011 and only 8.6 per cent (78,115 tonnes swt) in 2005.

[Mustang Sally Farm]

MLA: Daily Cattle Market Summary
24 January 2013




 
AUSTRALIA - Prices were up overall as the Cattle Indicator lifted to 313.75¢/kg cwt on Wednesday, write industry analysts at Meat and Livestock Australia.

Casino
 
Numbers at Casino increased with more young cattle yarded than last week. Medium weight vealer steers to slaughter ranged from 168¢ to 190¢, while light vealer C2 heifers were relatively unchanged on 185¢/kg.

 Medium weight heifers generally sold from 170¢ to 189¢, while yearling steers and heifers were too few to quote. Heavy C3 grown steers lifted 5¢ on average making 168¢, while medium D3 cows generally sold from 122¢ to 140¢/kg.
 
Warrambool
 
Throughput at Warrnambool eased with the usual trade and export buyers present. Heavy B3 vealer steers to process orders were unchanged, averaging 172¢, while medium C3 vealer heifers lifted 2¢ on last week making 143¢/kg.

 Heavy C4 grown steers sold 6¢ dearer on 156¢, while the heifer portion generally sold from 143¢ to 153¢ for the better quality lines. Medium D2 dairy cows ranged from 82¢ to 90¢, back 5¢, while heavy C3 beef lines topped at 125¢ to make 120¢/kg.

Dalby
 
Consignments at Dalby slipped by 17 per cent with the majority of the yarding consisting of secondary lines. The C2 calves to restock sold 3¢ dearer on 182¢, while medium vealer heifers topped at 181¢ to make 175¢/kg. Light yearling steers returning to the paddock sold from 178¢ to 207¢, while medium weight lines to feed was relatively unchanged averaging 179¢/kg for C2 muscle lines.

 Light yearling D2 heifers sold 7¢ cheaper averaging 149¢, while medium weights to feed topped at 172¢ to make 167¢/kg. Heavy bullocks averaged 172¢, back 4¢ on last week, while the bulk of the better quality grown heifers sold 7¢ cheaper on 155¢/kg. Heavy D4 beef cows sold from 134¢ to 145¢/kg.

Market Conclusions
 
At the close of Wednesday’s markets the Eastern Young Cattle Indicator (EYCI) lifted 1.5¢ to 313.75¢/kg cwt. Trade steers were up 1¢ on 166¢, while feeder and medium weight steers were unchanged on 168¢ and 154¢/kg respectively. The heavy steer indicator lifted 3¢ making 166¢, while medium cows settled o 124¢/kg.

[Mustang Sally Farm]

Trade Appointment Causes Live Export Concerns
04 February 2013

AUSTRALIA - Appointing Kelvin Thomson as Trade Secretary will have a detrimental effect on Australia’s live export industry, Western Australian Farmers Federation has said.

Long opposing the live trade, Mr Thompson has led backbench revolts against the Gillard government’s support of the industry.

WAFarmers Meat Section President, Jeff Murray, said WAFarmers was very familiar with Mr Thomson’s stance on live export and would continue to lobby for the expansion of the live export trade out of Western Australia.

“The live export trade is not only important to producers in the North West of Western Australia but also to the sheep and cattle producers in the agricultural region,” Mr Murray said.

“WAFarmers has been working with industry and the Federal Government for the last 18 months to ensure the continuation of the live export trade and we will be doing everything within our power to ensure this new appointment does not cause a set back the trade.

“Trade Minister, Hon Craig Emerson, has been very supportive of the industry and we will look for him to continue that work and not hand any responsibility for live exports to Mr Thomson, who is on the record as being opposed to the live export industry.”

Mr Thomson represents an inner city Melbourne electorate and has repeatedly demonstrated his lack of understanding of the importance of live export to Western Australian producers.

“Australia does more work in foreign markets to improve animal welfare than any country in the world and the fact is, live exports and the welfare of animals will be worse off without Australia’s leadership and experience.

“Mr Thomson now has some very serious responsibilities which directly affect the farmers of Western Australia and we will be contacting him to get an understanding of where and what he may be responsible for,” Mr Murray concluded.

 WAFarmers is committed to a strong, viable live export trade and will continue to work with government, industry and exporters to ensure the continuation of the trade.