Farm export fall of 7.7 pc tipped

A report in the Weekly Times says the value of Australian farm commodity exports is expected to fall 7.7 pc this financial year, and according to the ABARE report Australian Commodities exports will drop a further 1.3 pc next financial year.

However, the report says forecast lower world indicator prices in 2010-11 for wheat, coarse grains and sugar are expected to be largely offset by expected higher prices for oilseeds, cotton, wool and dairy products.

Extra competition in Australia's key beef export markets - Japan and Korea - is expected to lower the price of beef and veal from 296 cents in 2008-09 to 292 cents in the next financial year.

The report says lamb prices will remain "relatively high in real terms", increasing three pc in 2010-11 to 450 cents a kilogram while the saleyard price of pigs is predicted to decline as imports increase.

Rules lay waste

According to a report in the Weekly Times, importing beef from the US risks bringing chronic wasting disease and mad cow disease to Australia a respected NSW government body claims.

The paper says that new rules came into effect last week, allowing the importation of beef into Australia from "mad cow" affected countries despite ongoing and widespread opposition from the industry.

And now a letter from the Livestock Health and Pest Authority to Federal Agriculture minister Tony Burke says chronic wasting disease (CWD) poses a real health risk to humans as well as cattle.

He says the risk of importing CWD - which is "notorious for cross-species contamination and is carried by deer in North America where co-grazing between deer and cattle is "common" - is "real".

DSE will obey - Coalition

The Victorian Coalition has vowed that it will sack public servants who refuse to implement its election policy to restore cattle to the Alpine National Park according to the Weekly Times.

The Coalition's pledge to reintroduce beef cattle to the park as a management tool to reduce the region's bushfire risk, should it win government on November 27, has been labelled hollow by the State government.

In 2005 the Bracks government legislated to ban grazing, which has been carried out in the area since the 1800s, by removing the licensing system under which Victoria's mountain cattlemen took stock into the park each summer.

The paper says that while the Coalition is promising to revive park grazing it will not do so by legislating to restore the licensing system. Instead it says expressions of interest will be sent to graziers seeking entry to the park.

Breed's posh name is minced meat

Everyone is doing it these days according to Weekly Times. Selling Angus-branded beef products that is. And not high-end premium products but their poorer cousin, the humble hamburgers.

The paper says that fast-food chain McDonald's really got the ball rolling in the middle of last year when it launched two "premium" burgers endorsed by Certified Australian Angus Beef.

Sales exceeded even McDonald's expectations, soaring 20 pc just a month into the campaign and with food provenance a growing concern among urbanites, it seems knowing where your food came from - or at least the breed - is hot right now.

While branded Angus prime cuts are making headway into swanky restaurants it is the burger which is really raising the profile of the breed - with supermarkets the latest to jump on the Angus bandwagon with Coles now launching Angus burgers to complement its CAAB snags.

How now, mad cow?

When BSE broke out in the US and UK in 2003 and 2004, Australia immediately enforced a blanket ban on all beef and beef products from the two countries according to a report in Weekly Times.

Other trading partners (notably Japan) enacted similar policies, while Australia cashed in on its BSE-free status in the absence of American and British competition there was a hitch - any case here would see all local beef removed from shelves.

But last year the Cattle Council of Australia and Federal government agreed Australia's opposition to importing beef from BSE-affected countries will end and the controversial changes came into effect last week.

Rural politicians and industry leaders have found themselves at each other's throats, with the issue heated by our lax labelling laws which will not identify if beef is from a BSE-affected country and others claim the move will end our marketing edge in Japan and Korea.

Clear road to historic sales

All roads will be leading to East Gippsland's high country this week when Elders celebrates the 70^th anniversary of its famed mountain calf sales according to a report in the Weekly Times.

The paper says Elders will sell 9500 weaner calves in a series of four sales - at Omeo, Ensay and Benambra - and the top drafts will be similar to last year's weights boosted by many vendors having an easier run up to the sales this year.

Elders Omeo manager David Hill says the sales kick off this year with the Omeo Black Sale when 1600 Angus and Angus-cross steers and 1300 of their heifer sisters will be on offer.

The remainder of the 3000 steers and 2600 heifers will go under the hammer in the following three sales and Hill says with seasonal conditions and the amount of grass across Victoria and further north "we have had interest from far and wide".

Productivity the key to success

The message from MLA during its annual projections in Sydney has been that productivity gains will be pivotal to the success of southern Australian beef producers says Weekly Times.

Despite beef cattle prices languishing, and input costs remaining high, the paper reports that MLA analysts confidently believe there are still plenty of gains to be made in productivity.

MLA research adoption manager Jane Weatherley says modelling average southern beef production systems has found most cattle producers, during non-drought periods, use an average of just 35 pc of their overall feed base.

"So there is significant scope for improvement," Weatherley says. Over the past 22 years Victorian beef producers have boosted their productivity by - beef produced per hectare - by only 2.1 pc.

Good season triggers three-day sickness alert

Three-day sickness has continued its march across the State in the past fortnight with The Land reporting cases are now being diagnosed as far southeast as Orange, Condobolin, Forbes and Wagga Wagga.

It has also reached as far east as Scone and Guyra as its spread is encouraged by the recent spate of warm, wet weather across the State, along with northerly winds which helped the carrier insects move south.

Also known as bovine ephemeral fever (BEF), the virus has crossed Queensland and spread through NSW and Livestock Health and Pest Authorities Riverina district vet Gabe Morrice has reported a suspected case north of Narrandera.

Heat stressed, heavier-framed, and cattle in more forward condition are among those at highest risk and experts say the virus is hitting harder than 2009 as this year's outbreak has coincided with warmer weather.

Indonesia proves a shining light

Indonesia, one of our nearest northern neighbours, is one of only a few markets forecast by MLA to record an increase in beef orders this year, bucking a 3.9 pc decline in our production and expectation of a high dollar says The Land.

The paper says Indonesia's resilient economy, expanding population and falling local beef cattle supplies will prove to be a big bonus for Australian beef cattle producers throughout the year.

Last year Indonesia was the bright star for Australian beef exports, taking a record total of 51,800 tonnes (shipped weight), which was a staggering increase of 57 pc on the year before.

Shipments are this year tipped by MLA to increase another 10 pc to about 57,000 tonnes, shipped weight. Most of our business with Indonesia last year was manufactured beef; some competition from other markets will have a major influence on volumes shipped in 2010.

Tech savvy carcase competition

The Land says a cutting-edge grainfed domestic carcase competition aimed at helping producers learn how their cattle perform under feedlot conditions and in chillers has been launched in association with this year's Primex Field Days at Casino.

With $10,000 in prizemoney up for grabs, the Pacific Beef Carcase Competition is designed to give forward-thinking commercial producers access to leading technologies in everything from genetics to meat quality.

The paper says that producers will have access to extensive performance data on their entries, including figures on growth rates and the health of their cattle, through the 70-day feedlot program.

They will also have feedback on compliance to market specifications such as saleable meat yield and eating quality, with cattle processed at Northern Co-operative Meat Company and judged under Meat Standards Australia's ABCAS grading system.

More meatworks closures on cards says T&R

T&R Pastoral livestock manager Paul Leonard has warned of further regional closures of meatworks as high sheep prices, reduced cattle and sheep numbers and the soaring dollar continue to squeeze profit margins says Stock Journal.

Leonard is predicting "more rationalisation" during the next 12 to 18 months and the advent of the "super processor" capable of meeting the high-quality supply demands of the global food sector.

"The day of the abattoir is well and truly over," Leonard told delegates at the recent Cleanskin Sheep Symposium in Adelaide. "Fully-integrated food processing facilities are the way of the future."

He says abattoirs which have not recently invested in their plants had become "antiquated" as freezing capability has become a must for long-term survival and while smaller works struggle to cover costs, T&R has sunk $40 million into upgrading its plant, including four new beef and sheep chillers in SA.

How live exports drive beef prices

Live exports cannot be blamed for recent hardship experienced within the red meat processing sector as has been claimed in recent weeks according to a report in the Queensland Country Life.

Processors recently suggested live exports, operating under a lower-cost and less regulated environment are competing unfairly for available cattle in northern Australia and are a factor in recent plant closures and production cutbacks.

However, other industry stakeholders have interpreted the current push for stock by live exporters into North Queensland as simply a part of the ebb and flow of supply and demand between the sectors.

They point to the reverse applying at different times when processors  have held the upper hand but Australian Live Exporters Council chief executive Lach McKinnon says the more competitors active the better the prices will be for producers.

Sustained recovery for Australian beef

While the impact of the best summer season in a decade in many cattle areas will help ease pressure on beef producers, Queensland Country Life says the bigger issues which hampered meat and livestock markets in 2009 remain largely unchanged.

The industry will continue to struggle under the burden of an uncompetitive exchange rate, cattle supply shortages and subdued demand in key export markets in the year ahead says MLA.

Delivering a "cautiously optimistic" 2010 Beef Industry Projections forecast, MLA economist Tim McRae points to come positive signs of a sustained recovery over the next 12 months.

The paper says that the immediate impact of rain will be to deliver slaughter cattle in better condition, drive higher market demand for store cattle and spark a move towards herd rebuilding.

MLA UPDATE

Cattle herd to slowly rebuild - ABARE

5/03/2010

The Australian cattle herd is forecast to slowly rebuild towards 28 million head over the next five years, underpinned by favourable conditions in northern Australia and improved incomes for cattle producers, according to the Australian Bureau of Agricultural and Resource Economics' (ABARE) Australian commodities, released this week.

However, over the coming year, ABARE expects the high A$ and increased competition from US beef in Japan and Korea to continue to pressure saleyard cattle prices, which are forecast to average 6% lower in 2009-10 and 3% lower in 2010-11. According to ABARE, cattle prices will start to improve from 2011-12 onwards, rising steadily through to 2014-15.

Stronger competition from US beef in Japan, along with sluggish beef demand and a high A$ will result in exports to Australia's largest export beef market contracting 6% in 2009-10, to 341,000 tonnes swt. Additionally, a 4% decline in beef production for the year will also constrain the amount of beef available for export. According to ABARE, the main impact on Australian beef of the return of US beef in Korea will be in the 2010-11 fiscal year, with Australian shipments forecast to decline 6%, to 110,000 tonnes swt.

For the US, Australian shipments in 2009-10 are forecast to fall to 240,000 tonnes swt, before increasing 8% in the following year, to 260,000 tonne swt. According to ABARE, Australian shipments to the US are expected to steadily increase through to 2014-15, to 295,000 tonnes stw, as the US cattle herd enters a rebuilding phase, constraining beef production and raising demand for imported product.

For the Australian live cattle export industry, ABARE has forecast a further expansion in exports through to 2014-15, reaching 1.04 million head. The steady rise in shipments will be primarily underpinned by strong demand from Indonesia, along with further herd growth across northern Australia.

Flooding rains in the north

5/03/2010

Heavy rainfall this week was concentrated in southern Queensland and the NT, while the majority of WA, SA, Victoria, NSW and Tasmania remained comparatively dry.

In Queensland, large farming areas of the Darling Downs received crop-saving falls of 80-150mm, while widespread flooding occurred around Charleville and Roma.

(continued from page 1)... In the seven days to Thursday, areas of western NSW, such as Hay (50mm), Finley (34mm) and White Cliffs (58mm) received good follow up rain, while in the NT, regions around Alice Springs and the Barkly district recorded over 150mm.

Rainfall since December has provided the best seasonal break in years to cattle and sheep producers across central and eastern Australia, with above average summer rainfall for the majority of Australia, after a number of increasingly desperate seasons. Rain depressions brought by ex-tropical cyclones Lawrence and Olga in December and February and a number of low-pressure systems resulted in many regions witnessing their highest summer rainfall totals in years.

Late rainfall has provided an ideal boost to late-sown summer crops and given hope to improved yields for winter cropping rotations. Rainfall has also provided a boost to cattle prices - with export conditions remaining difficult due to the high A$ and subdued export demand - allowing producers to hold onto stock, and driving restocker demand. The EYCI has now lifted 66.75¢ since reaching a low in December last year to 344.50¢/kg cwt this week.

Southern and western Queensland have seen particularly high falls. The rain event this week, which caused widespread flooding in the Warrego and Maranoa regions, is likely to further disrupt cattle movements for the next few weeks.

Further rain fires grass market

5/03/2010

Heavy rain across the NT, western and southern Queensland (now moving to inland NSW) has again boosted demand for young restocker cattle, calves, cows and ewes.

The EYCI reached 344.5¢/kg cwt, up a further 5.75¢ on last week, and a rise of 24% since December's low. Similarly, cow prices have lifted 23% since December, to 276¢/kg cwt. Part of this week's rises have been caused by the difficulty in moving cattle to market, with Queensland yardings at MLA's NLRS reported yards halving this week, and the national total down 22%.

Mutton sheep prices jumped a further 12¢ this week, to a record 345¢/kg cwt - again matching the EYCI.

In contrast, trade and heavy lamb prices fell 3-5% this week, with a rise in yardings, lift in quality and the closure of Castricums. Lamb prices may yet have an unusual decline this autumn, as some of the lambs retained over the past three months (particularly male lambs) come back to the market (in good condition and at heavier weights).

If at least average autumn rains are received in southern states (as is now being predicted), many more ewes and ewe lambs are likely to be retained for breeding purposes. If the good summer breeding season is followed up with good autumn pastures and water supplies, the long and rapid sheep flock liquidation could end this year.

Cattle market wrap

5/03/2010

Weekly cattle throughput varies

Cattle throughput across the nation's saleyards continues to be dictated by seasonal conditions.

In Queensland this week, yardings were down 66% on last week as monsoon conditions brought stock transportation to a near standstill. Both Roma prime and store sales were cancelled and moved to a smaller combined sale on Friday, with flood waters encroaching the town on Wednesday. The Dalby and Moreton sales also saw reduced yardings due to rain, falling 90% and 37%, respectively.

NSW has also seen supply tighten with numbers at Casino, Gunnedah, Inverell and Wagga all dropping significantly. The good seasonal conditions have not only seen a reduction in numbers at yards, but have increased demand from restockers looking to rebuild after an extended period of drought.

These factors, along with strong competition and higher prices at physical markets have seen a number of processors and lotfeeders head south to secure suitable lines of cattle. Some processors in Queensland have been forced to operate at reduced capacity due to road closures preventing transport of stock. Supply is expected to remain tight for the coming weeks. When numbers begin to pick up, it is expected those presented will be in excellent condition.

Despite lower numbers in the north of the country, Victoria and SA saw an increase in throughput this week in the anticipation of the public holiday next Monday. In the south of WA, numbers continue to dwindle as the season remains hot and dry and most of the season's vealers have been sold.

Prices still on the up

The Eastern Young Cattle Indicator (EYCI) finished Thursday's markets at 344.5¢, a rise of 5.75¢/kg cwt on last week. The driving force continues to be tighter supplies and strong competition from restockers motivated by an improved seasonal outlook.

Most of the other eastern states indicators also continued to improve. Trade steers rose 3¢ to 181¢/kg lwt. US cows finished at 134¢, a gain of 3¢/kg, with Japan ox the only indicator to fall for the week, down 1¢ to 175¢/kg lwt.

Western Australia hot and dry

Cattle numbers presented at WA markets have fallen in recent weeks as most of this seasons vealers have been sold, subsequently Great Southern returns to a single combined sale this Thursday. Seasonal conditions continue to deteriorate, with feed conditions severely worsened by hot and dry weather along with diminishing dam levels.

Prices remain mixed as the number of young cattle slips. A number of orders from the south of the state have headed east for restocking purposes in addition to reasonably sized live export consignments.

Despite strong competition on some consignments of trade cattle, quality remains a limiting factor. Vealer steers to restockers at Midland this week topped at 175¢/kg lwt to average 160¢, while those going to lotfeeders averaged 152¢ to make between 145¢ and 160¢/kg lwt.

At Midland on Tuesday the supply of cows was limited, resulting in strong competition. Lighter conditioned cows saw strong competition with those to processors up 5¢/kg lwt.

Traders struggle to satisfy Korean beef demand

5/03/2010

Australia's beef traders reported on solid demand and strong prices from Korea this week, but were at times unable to capitalise on this demand due to the lack of beef supply. This resulted in low beef trading among Korean wholesalers.

While Korean beef importers are demanding large quantities of clod, chuck and point end brisket, Australia's traders commented that the low beef supply and strong interest for trimmings in other markets in recent weeks is diminishing the offering of these items.

Beef exports from Australia to Korea totalled 7,505 tonnes swt in February with 2,325 tonnes swt consisting of chilled beef products. The lack of Australian grassfed beef has triggered improved interest in grainfed beef in Korea - increasing 33% on last month and by 47% in the calendar year to February compared with 2009.

UAE food spending to increase by 3%

4/03/2010

Food spending in the United Arab Emirates (UAE) is expected to rise by 3% in 2010 and then by 4-5% annually between 2011 and 2014, according to Business Monitor International. This follows a 2% increase in 2009. The food market in the UAE is currently valued at US$6.78 billion.

The UAE's consumer confidence index lifted in the last six months of 2009 to 86.1, up from a low of 29.6 points in the first half of the year. News of this overall improvement comes on the back of the international food show, Gulfood 2010, at which MLA hosted a record contingent of 22 exporters. A consistent theme at the MLA trade stand was Australia's supply constraints in 2010. This has further encouraged the trade to re-think carcase utilisation and the development of more cuts-based supply programs.

Australia's food safety and Halal certification programs are highly regarded in the Middle East region, with food security and integrity remaining key factors driving demand for Australian red meat.

Beef exports down to South East Asia

4/03/2010

Australian beef exports in February to the South East Asia and Greater China region were back 12% year-on-year to 8,781 tonnes swt. This was consistent with overall Australian beef exports during the month which were affected by a lack of supply.

The three largest export destinations in the region for Australian beef are Indonesia, Taiwan and the Philippines, and of these, only the Philippines recorded a year-on-year increase, up 24% to 1,390 tonnes swt. Exports to Indonesia and Taiwan fell 34% to 2,986 tonnes swt and 8% to 1,922 tonnes swt, respectively.

Beef exports to Japan remain subdued in February

4/03/2010

Australia shipped 26,581 tonnes swt of beef to Japan in February, down 11% from the same period in 2009 (Department of Agriculture, Fisheries and Forestry). While interest from Japan, and some prices, for Australian beef improved during the month, the extensive rain across the eastern states kept cattle supplies very tight, limiting processing volumes.

The buoyant A$ - averaging 37% higher against the US$ from February 2009 - also challenged Japanese importers who were under pressure from the deflationary market. As a result, both chilled and frozen exports fell 12% to 12,798 tonnes, and 9% to 13,783 tonnes, year-on-year, respectively.

Supply constrains February beef exports

4/03/2010

Australian beef and veal exports contracted significantly during February, as the combined impact of the high A$ and very limited supply, on the back of excellent rain across Queensland, had processors remaining at reduced operations. Exports for the month totalled 62,138 tonnes swt - 22% below the corresponding period in 2009 and the lowest February volumes since 1997 (Department of Agriculture, Forestry and Fisheries).

Shipments to the US dropped 48% year-on-year, to 14,481 tonnes swt despite higher US import prices and constrained US beef stores. Volumes were also back 11% to Japan (26,581 tonnes) and 10% to Korea (7,505 tonnes), primarily due to supply, even though there was a reported increase in buyer interest from both markets. Exports to Indonesia declined 34% (3,986 tonnes) and 8% to Taiwan (1,922 tonnes).

Despite easing somewhat throughout February, the buoyant A$ still remains a major constraint upon export demand - averaging 37% higher year-on-year against the US$, as well as 34%, 28% and 10% higher, respectively against the Japanese Yen, Euro and Korean Won (Infoscan).

However, with prices increasing from last year's lows after recent heavy rainfall across eastern Australia - particularly throughout Queensland - many producers are expected to retain stock into the second quarter of 2010. This is likely to exacerbate already tight cattle numbers and flow through to lower beef export supplies for the coming months.

Tight supply limits Japan beef imports in January

4/03/2010

Japan imported 28,563 tonnes swt of beef during January, a decline of 22% compared with the same period in 2009 (Ministry of Finance, Japan). The decline in imports was largely due to a tight supply of beef from Australia, combined with the high A$ (up 37% from 12 months ago) and Japan's stagnant economy.

Frozen beef imports from Australia dropped 31% year-on-year during the month, to 11,773 tonnes, while chilled imports declined 7%, to 10,486 tonnes. Imports from the US increased 108 tonnes (or 3%) on last year, to 3,916 tonnes, with reduced chilled volume (down 14% to 1,703 tonnes) being offset by the increase in frozen (up 21% to 2,213 tonnes).

Despite some increase in supply from the US, frozen beef inventories have been reportedly low in the market, particularly manufacturing beef.

Renewed optimism for US restaurant sector

4/03/2010

For the first time in nine months, the US restaurant industry signalled its expectation for improved sales growth over the coming six months, even though sales currently remain sluggish.

The results were from the latest US National Restaurant Association (NRA) survey.

The monthly tracking Performance Index (based on current sales) fell to 98.3 in January - 0.3 points lower than the December survey, indicating softer sales and reduced customer traffic in the US restaurant industry for the month. An index below 100 indicates a contraction in the industry. The Performance Index has remained below 100 for 27 consecutive months.

The NRA's Expectations Index rose to 100.1 in January, up 0.2 points from December, with restaurant operators confident about sales growth over the next six months amid an expectation of improved economic conditions. Again, an index above 100 indicates an expansion in the industry.

The NRA expects US restaurant industry revenue to reach US$580 billion in 2010, up 2.5% on 2009. This is positive news for Australian red meat exporters and US meat producers who in 2009 saw a dramatic slump in Prime and Choice beef prices due to the downturn in foodservice sales and customer traffic.

At the end of February 2010 the US Choice boxed beef cutout value reached 148.54US¢/lb, up 12% on the same time last year.

Korean consumers' preference for domestic beef

4/03/2010

The Korea Rural Economic Institute (KREI) has revealed the findings of a beef satisfaction survey among 450 Korean consumers. Of those surveyed, 72% indicated they were satisfied with the safety of domestic beef (Hanwoo), while 91% and 85% of respondents were satisfied with the taste and quality of Hanwoo beef.

The satisfaction level of Korean respondents in regards to Australia's beef safety stood at 38%, while taste and quality reached 47% and 42%, respectively. Only 4% stated they were satisfied with US beef, while 18% and 15% of respondents were satisfied with the taste and quality of beef from the US.

The article reported that these results were attributable to the Hanwoo meat differentiation policy, beef traceability system and food origin labelling regulations. Unfortunately, the article did not report on region surveyed or respondents' demographics.

Tight Argentinean beef supplies affects European menus

4/03/2010

Scarce supplies of Argentinean beef in the EU (Argentina's highest value export market) are increasingly being replaced by other suppliers' products. The tighter supply from Argentina is due to the significant reduction in the number of export certificates issued by the local government.

Argentinean beef has generally been a well marketed product across European steakhouses, taking advantage of its characteristic 'parrilla‘ (barbeque) style among EU consumers and its 28,000 tonne High Quality Beef quota.

However, the image of Argentinean product has diminished in recent years, particularly over recent months, as product availability tightens, supply becomes unreliable and prices become increasingly expensive as cattle prices soar (Infocampo).

As a result, importers and restaurants, which have built their supply chains and menus around Argentinean product, are now looking for other more consistent and reliable suppliers.

Rain dampens beef supply for Japan

4/03/2010

Australian beef exporters noted ongoing interest from Japan, but product availability remained very limited this week, confined by recent rains in Queensland. Export prices of frozen briskets and CL items continued to lift in both US$ and A$ terms, reflecting low stock levels in the market.

The US Meat Exports Federation (USMEF) is aiming for 100,000 tonnes of US beef to be exported to Japan in 2010. It also revealed during a press conference in Tokyo this week that the organisation will place a stronger emphasis on promoting yakiniku (Japanese/Korean style barbeque) and gyudon (beef rice bowl) items in the market. Japan imported 69,193 tonnes swt of US beef in 2009.

Brazilian state aims to improve FMD status

4/03/2010

The Agriculture State Secretary of the southern Brazilian state of Paraná has requested to the Ministry of Agriculture to cease foot and mouth disease (FMD) vaccinations in the state, with the objective of acquiring ‘FMD free without vaccination' status. If achieved, Paraná would be the second state in Brazil to obtain this status after neighbouring Santa Catarina.

According to the World Animal Health Organisation (OIE), countries or regions need to remain free from vaccination and record no FMD outbreaks for one year, among other requirements, in order to apply for ‘FMD free without vaccination' status. The state is aiming to cease vaccinations before the June 2010 vaccination campaign.

The Brazilian government has stated though there is always a risk of an FMD outbreak while ceasing vaccinations, there are mechanisms to rapidly control an outbreak (which will be assessed in a forthcoming audit). In addition, the state has boosted its sanitary control procedures (especially with neighbouring states and Paraguay) in recent years, in partnership with the cattle industry.

However, local analysts have suggested that ceasing vaccinations would be a risky strategy, given the poor animal husbandry and disease status of neighbouring Paraguay and Bolivia (AgraFNP).

Mixed results from Japan foodservice

4/03/2010

Western style fast food (hamburger) outlets in Japan recorded strong sales in January, while yakiniku (Japanese/Korean style barbecue) and gyudon (beef rice bowl) outlets suffered from sluggish sales.

According to the Japan Foodservice Association, the western style fast food sector increased its sales by 6% year-on-year in January. The foodservice giant, McDonald's Japan, largely contributed to the growth, with its successful ‘Big America' campaign (American themed burgers with Australian beef patties) since last December.

Other major users of Australian beef - gyudon and yakiniku operators - reduced sales by 5% and 10% from 12 months ago, respectively. Price cutting among gyudon chains negatively impacted sales revenue. Yakiniku sales have been declining year-on-year since May 2009.

Industry hits back in beef import fight

Beef industry leaders say they are not being sidelined by the Federal government and will now be allowed input into new rules governing imports from BSE-affected countries according to Stock Journal.

Peak councils representing the beef industry say following an urgent meeting in Canberra they now have a commitment from Agriculture minister Tony Burke that farmers will be part of the process to design food safety protocols for applications to bring beef to Australia.

But it still seems Canberra won't commit to a Risk Import Analysis process to scrutinise new imports for any threat to animal health, with the only assessment process relating to human safety alone.

The government does argue, however, that the import of any beef products "has been and always will be covered by robust import quarantine conditions specific to the country of export".

A beef with deputy PM

Protestors at a North Coast demonstration staged outside a Lismore attended by Deputy Prime Minister Julia Gillard have told The Land opening the floodgates on beef imports is the biggest threat in the industry's history.

Some producers say that for a long time they have been in the position where they could make more money from selling their farms and banking the money than they can from producing beef.

The paper says that their message to Ms Gillard, backed up by a petition handed to her, was clear: Australia produces enough beef and there is no good reason to import more - but plenty of reasons not to.

A rally spokesman says diseases such as BSE had virtually wiped out overseas beef industries (witness the disaster which struck the US early last decade) and added the double standards at play in demanding Australian farmers have a traceback system but not insisting on the same for imports is incredibly unfair.

Macquarie Pastoral crowned new cattle king

An increasing Asian demand for protein, primarily beef and lamb, is seeing Macquarie Group quietly become one of the country's largest private landholders and cattle and sheep producers in less than three years says Stock Journal.

Having launched an agricultural version of its classic investment funds in 2007, Macquarie is looking to add several more specialist vehicles targeting the farm sector following the rapid-fire success it has experienced.

With landowners such as the Packer family and sharemarket groups such as Great Southern either selling down or collapsing during the past year, Macquarie Pastoral Fund has taken advantage of lower land prices to amass a large portfolio.

The fund now owns 16 properties - of which six were acquired last year - totalling 2.9 million hectares and running more than 300,000 cattle and sheep. It is also in the Top Ten landowners in Queensland with its string of beef cattle properties there.

Protecting us from FMD

The consequences of an outbreak here of foot and mouth disease (FMD) would be a disaster of unprecedented proportions for Australia's livestock industries - particularly cattle and sheep - says Stock Journal.

According to the paper, it is estimated a worst-case FMD incursion would have an initial cost between $8 billion and $13 billion and CSIRO is now undertaking a range of activities to better support decision and policy markers.

Bring prepared to respond to an outbreak of this magnitude, and early recognition of the problem, are critical and could significantly reduce the impact on the Australian economy and our rural communities.

Researchers are working with live FMD virus in countries where the disease is endemic and Australia is also helping its affected near neighbours to better manage their own FMD threat.

Mighty minds build red meat demand

A clever nutrition campaign from Meat and Livestock Australia aims to have consumers reaching for red meat to prevent tired brains and low energy and concentration levels says Queensland Country Life.

The paper says that the next phase of the highly-successful "Red Meat: Amazing food" campaign follows on from its initial launch in July of last year, starring Sam Neill and Dennis the orang-utan.

The program links the benefits of five critical nutrients in red meat - iron, zinc, B12, omega-3 and amino acids - with everyday brain function and highlights the adverse effect of low iron levels on mental performance for daily function.

The latest campaign started on St Valentine's Day and runs until March 14, with Sam and Dennis back in their starring roles, backed up by a swag of point-of-sale material, online and radio spots.

Too much bang from our buck

MLA has used the 2010 Beef Industry Projection in Sydney to focus on the crisis facing the Australian processing industry and Queensland Country Life says the Australian dollar is at the top of the hit list.

MLA economist Tim McRae says there might be a basketful of reasons behind the squeeze hitting processors but with the dollar appreciating a staggering 35 pc in the past 12 months it is not hard to find the biggest problem.

With three small but significant regional abattoirs closing in the past few weeks the unusual confluence of the high dollar, livestock shortages and poor demand and prices in key export markets are being tagged as the "biggest influences in the current perfect storm" being ridden out by processors.

The impact of the global financial crisis on demand in key markets such as Japan and the US, successive droughts and a shift to live export have also been listed as significant contributors to the squeeze being faced by the industry.

Processors weigh in on live-ex debate

Major red meat processors are now backing calls for a closer scrutiny of weight limits on live export cattle leaving our northern ports for Indonesia according to a report in the Queensland Country Life - with more heavy animals leaving Australia live.

The encroachment of the live export industry into Queensland cattle production areas traditionally serviced by abattoirs is increasingly being linked to the hardship being felt within the sector at present. Indonesian imports call for an upper limit of 350 kilograms but there are now grids for slaughter-type animals up to 600 kilograms.

Overall, live exports rose nine pc last year to almost one million head, driven in part by increasing the trade with cattle sourced out of Queensland, and industry forecasts suggest this could grow another five pc this year.

Teys Brothers managing director Brad Teys says it is not drawing too long a bow to suggest recently closed plants in southern Queensland and NSW were affected by the expansion into live export activity further north.

NLIS herd data boosts bottom line

An on-farm Central Queensland extension project now in its final stages is using NLIS  technology to enable producers to better manage the productivity of their cattle herds says Queensland Country Life.

Department of Employment, Economic Development and Innovation industry development officer Lindy Symes is overseeing the three-year Producer Demonstration Site (PDS) project.

Symes has told the paper that the PDS objective has been to demonstrate to how producers could incorporate NLIS technology into their day-to-day operations to improve herd management and profitability.

CQ BEEF Bileola Group members Megan and Gavin Muller have successfully hosted the NLIS project using weaners bred on their Ubobo district breeding block and grown out and finished on their Bileola property.

Beef Expo cements position

The NSW Beef Spectacular and Trade Expo has cemented its position as the largest beef cattle show and trade expo in NSW outside the Royal Easter Show in just four years says a national Rural Press report.

The NSW Beef Spectacular will this weekend see close to 700 head of cattle on display and more than 30 trade displays - ranging from fencing material and cattle equipment through to superannuation options.

There will also be a three-day "Meating the Markets" cattle producer seminar, which will present some of the country's leading speakers in their fields at the Dubbo Showgrounds from Thursday March 4 until Saturday March 6.

For beef cattle enthusiasts there will be 27 breeds on display - from stud cattle to commercial competitions and a highlight will be the presentation of the feedback steer trial at the Cargill Beef Australia barbecue.

Young cattle moving up

The cattle yard bidding isn't quite as dramatic as the scene over at sheep pens, but according to a report in The Land prices for yearlings are starting to make significant headway at a steady pace.

The paper says that the consistent small daily lifts in the price of the Eastern Young Cattle Indicator (EYCI) are tangible proof of the improving robustness of the beef cattle market.

At this time last year the EYCI was hovering below the 300 cents a kilogram (carcase weight) but by the end of February had moved up to around 335 cents a kilogram and shows no signs of stopping.

Part of the reason behind the gradual improvement in values has been the limited number of cattle available for slaughter with National Livestock Reporting Service figures showing although the number of cattle in saleyards is increasing; the number of those selling for slaughter is going down.

Double take on bovine illness threat

Animal health experts want livestock operators to be aware of the differences between the deceptively similar flu-like Sporadic Bovine Encephamyelitis (SBE) and Bovine Ephemeral Fever (BEF) says The Land.

The two bovine illnesses have a history in the north west of NSW; however the current illness which has broken out in that region as a result of the Christmas flooding has been diagnosed at BEF - or three-day sickness.

Livestock afflicted with BEF will often recover with merely a few days of rest whereas SBE will present as similar flu-like symptoms but can cause dramatic weight loss which, if untreated, may take a beats months to recover from.

BEF is a viral and (anecdotally) mosquito-borne disease while SBE is caused by the simple bacteria Chlamydia. BEF usually strikes heavily-conditioned animals (more than two years old) hardest but this year's cases seem focused on large volumes of stock aged between 12 months and three years.

Cruisier ride for our exports

Australian livestock export company Wellard is celebrating the maiden voyage of its newest vessel, the MV Ocean Swagman, which The Land says sailed from Fremantle to Jakarta carrying 5500 cattle.

The paper says that the ship is the newest, and most technologically advanced, livestock vessel in the world and sets new welfare and safety benchmarks for both livestock and crew.

Drydocks World of Singapore, which built the vessel, is also in the final stages of constructing a sister vessel, the MV Ocean Outback, which is scheduled to be launched later this year.

The Swagman has the capacity to carry 6000 cattle or 25,000 sheep and took four years to build, costing $40 million and using about 7000 workers and Wellard managing director Steve Meerwald says the ship will be a regular fixture at ports around Australia, adding 180,000 head annual capacity to export routes.

MLA UPDATE

US cattle on feed numbers defy expectation

26/02/2010

Cattle on feed in the US have surpassed US industry expectations, despite US cattle on feed numbers (as at 1 February 2010) declining 3% on the same time last year, to 10.99 million head, according to the latest United States Department of Agriculture (USDA) figures.

Despite difficult weather conditions across many feeding areas in the US, cattle placements into US feedlots were only 2% lower than February 2009, at 1.83 million head - analysts were expecting placements to decline almost 5%. The higher than expected cattle placements may pressure the fed cattle market, particularly when demand has not fully recovered from recession.

US beef production has so far this year been 3% lower than the same time last year, with the USDA forecasting beef production to be 1% lower for 2010, to 11.57 million tonnes cwt. Average cattle carcase weights during January have been approximately 2% lower than last year, due to wet weather conditions during summer downgrading the quality of corn feed which has affected carcase yields.

Currently, the 5-market Choice Steer indicator is tracking 4% higher than year ago levels.

Korea demanding more Australian beef

26/02/2010

Most beef exporters in Australia reported increasing enquiries and stronger prices this week. This surge in demand has resulted from low Korean stocks after Lunar New Year celebrations and Australia's limited supplies.

Australia exported only 5,729 tonnes swt of beef to Korea from 1-22 February, with chilled beef totalling 1,776 tonnes swt. The limited supply from Australia could result in opportunities for competitors in the imported beef market in Korea.

Korea's National Veterinary Research and Quarantine Service reported that a total of 17,256 tonnes swt of beef was imported in January this year. Australia accounted for 46% of total imports, while the US strengthened its presence, supplying 39%. The remainder was imported from New Zealand (14%) and Mexico (1%).

Fast food the winner during 2009

26/02/2010

A key trend emerging in the Australian foodservice sector the past two years was a move down the ‘dining ladder' by Australian consumers as a result of the increased financial stress caused by the economic downturn.

In 2009, although the Australian economy held up well, consumers favoured lower priced and higher valued foodservice options, with the main beneficiary being fast food chains (an emerging trend over the past two years). It appears consumers moved to them from restaurants, cafes, and independent takeaways. Fast food chains tapped into this trend during the year by offering more restaurant style menu options and broadening their range and offering premium versions of existing products.

The latest foodservice results collected by Penfold Research on behalf of MLA in November 2009 support many of these trends. Total meat consumption by core foodservice outlets averaged 241.2kg per outlet a week, 12% higher than a year ago, but remained historically low - being 3.5% below the survey average of 250kg. All meat categories recorded higher consumption compared with a year ago, led by poultry (up 19%), pork (up 12%), beef (up 5%), and lamb (up 9%).

Respondents were also asked whether their business was ‘thriving,' ‘doing OK' or ‘slow/struggling' compared with a year ago. Overall, the results showed improvement. However, there were several ‘pockets' of underperformance -particularly restaurants, fast food independents and Sydney outlets generally.

Most outlets described themselves as ‘doing OK' (58% versus 56% previously), while a healthy 27% were ‘thriving' (24% previously) and 15% were ‘slow or struggling' (18% last time) indicating that foodservice operators (as a whole) were generally in a healthy and stable state that improved during 2009.

Great start to 2010...but mixed autumn rainfall outlook

26/02/2010

After a great start to 2010, the rainfall outlook for the autumn months in southern Australia is somewhat mixed, ranging from a below average outlook for southern WA through to above average in SA and western NSW, according to the latest three month rainfall outlook from the Australian Bureau of Meteorology (BOM).

For March to May, the chance of exceeding median rainfall throughout Eastern Australia (including SA and NT) lies around 50%, with the possibility increasing to 60% into western SA. On the back of above average falls during February across many regions, which in some instances followed excellent January falls, average falls throughout autumn should enable excellent planting conditions for the upcoming winter crops.

So far for February, excellent falls have been recorded throughout Queensland, NSW and eastern Victoria. Falls in Queensland have ranged from in excess of 400mm around Townsville and the central coast, to 155mm at Emerald, 219mm at Charleville, while across the Darling Downs falls have been more variable, ranging from 40mm to in excess of 200mm. For NSW, many regions in the central and southern parts of the state recorded their best fall is many years during February, including over 200mm at Parkes, 146mm at Cowra, over 80mm across the Riverina, while parts of the south coast between 300-500mm.

However, even with the better falls throughout January and February, many regions will still be hoping for above average falls in autumn, most notable throughout southern NSW. Many water storages remain at historically low levels after several consecutive years of drought.

For WA, the rainfall outlook is variable, ranging from a 55-70% chance of above median falls across central WA, to only 30-40% into the south western corner. After a very hot and dry February, the outlook for drier conditions in the south west into autumn points to the possibility of below average seasonal conditions to start the winter cropping program for 2010-11.

In contrast to the wet eastern states, many regions of southern WA have had little, to no rain throughout February, as maximum temperatures exceeded 40 degrees. While falls throughout summer are usually limited in southern WA, the hot and dry conditions are in stark contrast to the significant improvement in seasonal conditions across the eastern states.

Japan gears up interest

26/02/2010

Following the upward price trend in chilled beef, frozen Australian beef prices in the Japanese wholesale market are also firming this month.

Items such as briskets and trimmings have increased in value faster than others, largely due to short supply. Cow meat 85CL averaged 480 yen/kg, up 30 yen/kg from a month ago and the highest since October 2008. Frozen briskets have also been in strong demand, averaging 530 yen/kg for Australian navel-end (30 yen/kg higher than last month) this week.

In the beef export market, the trading environment was similar to last week - strong interest from Japan and a limited supply of products (particularly frozen). CL items attracted firm bids from Japanese, domestic and US buyers, resulting in a lift in export prices.

Spot buying pressures US prices

26/02/2010

US processor lean beef supplies fell to low levels in late February, pushing imported manufacturing beef prices up. Prices continue to push higher both in US$ and A$ terms - a testament to stronger demand for lean manufacturing beef in the US, as the A$ continues to remain above the 87US¢ mark. Very high pork trimming prices are also contributing to the beef price rises.

CIF prices for Australian 90CL moved up 4US¢, averaging 158.5US¢/lb CIF, while FAS prices in A$ terms gained 11.9A¢/kg over the past week, to 362.3¢/kg FAS. Looking back at 2008, where prices reached a record of 190.5US¢/lb CIF in July, prices in late February were averaging around 140US¢/lb CIF.

Considering the recent shortage in lean manufacturing beef supplies and prices continuing to rise, there will be incentive for imported beef supplies to remain in store so as to hedge against further shortfalls in supply.

Monsoon rains returns

26/02/2010

Monsoon rains are forecast to return to northern Australia in the coming week, with some heavy falls already starting to be recorded through central and southern NT and into western Queensland. Alice Springs has already recorded close to 100mm in recent days, with much more expected over the next week. The wet weather is anticipated to move east, with the possibility of heavy falls again throughout southern and central Queensland.

A$ still hovering around 90US¢

26/02/2010

The A$ has continued to trade at uncomfortably high levels during the first two months of 2010, maintaining the very difficult trading conditions being faced by Australian exporters and processors.

So far in 2010, the A$ has averaged 90.1US¢ - 35% above the corresponding period last year and 14% above the 2009 calendar year average of 79.3US¢.

The A$ has traded between 86.6US¢ and 93.1US¢ so far in 2010, with the decline to below 88US¢ in early February assisting with an increase in returns to Australian exports.

Since the start of 2010, indicative 90CL manufacturing imported beef prices in US¢/lb terms to the US have increased 15%.

According to a number of Australia's leading financial institutions, the outlook for 2010 will continue to see the A$ trading between 85-95US¢, with some having the A$ rising slowly throughout the year, to peak in the mid 90's.

Rain keeps numbers low

26/02/2010

With another major rain event unfolding across the NT, and due to drift into southern Queensland over coming days, livestock turnoff remains low across all species, causing major problems for abattoirs and exporters.

Many cattle abattoirs have been running on fewer shifts so far this year, and three mixed species works have closed recently. The extent of the problems posed for small stock operations was illustrated again this week, with the announcement of a three-month closure of Castricum Brothers in Victoria, a major lamb processor/exporter.

Rarely have all livestock species been in low supply at the same time, but so far this year, weekly cattle slaughter has averaged 16% below last year, calves 14%, lambs 17%, sheep 30%, goats 15% and pigs 3% (MLA's NLRS).

Cattle, lamb and goat supplies can be expected to rise substantially in autumn, as many of the animals retained so far this year are brought to market - mostly in top condition. This could see an unusual autumn price correction, especially if the A$ remains around 90US¢, or moves higher.

Japan ox prices lifted a further 7% this week, and the EYCI rose to 339¢/kg cwt, both are now 7-8% above the same time last year. While trade and heavy lamb prices eased, they remain around 20% higher than a year ago. Sheep prices rose to a record 333¢/kg cwt, up 73% on last year.

Argentinean Hilton beef exports slump

26/02/2010

The Argentinean beef industry is concerned that their 28,000 tonne "Hilton" High Quality Beef quota will not be filled in 2009-10, as a result of government delays in distributing the allocations among exporters.

During the period from July 2009 to January 2010 only 5,647 tonnes swt, or 20%, of the total quota was filled. During the period July to October 2009, there was no Hilton beef exported from Argentina to the EU.

The government has been assigning the quota to the industry through small batches of 2,800 tonnes (10% of the quota) throughout this financial year. The main concern comes from the fact that 60% of the quota has not been distributed, and there is little more than three months left to ship product (considering that containers must leave Argentina in early June).

In addition, the Argentinean government's restrictions on the issuing of export certificates for all exports (including non Hilton, in an attempt to increase domestic beef supply) has contributed to a 30-40% fall in processor activity.

Brazilian producer margins continue to decrease

25/02/2010

Brazilian cattle production costs fell in 2009 as lower oil prices affected a range of input costs and producers cut spending on construction, servicing and calves. Despite this, margins continue to decrease, as steer prices dropped by a larger percentage.

Between January and December 2009, average operational cost for beef in Brazil decreased 3%. The main inputs to decrease were mineral supplements and fertilizers, both closely related to oil prices.

During the same period, the average heavy steer price decreased by a larger 7%, mainly due to lower demand from export markets and a low US$, which made processors reluctant to pay higher prices.

Lower margins also affected producers in 2008, during the period January to December 2008, the total weighted operational costs soared 26%, while the price for a heavy steer indicator only increased 12%.

The input registering the highest price rise during 2009 was pasture seed, which rose as producers focused on pasture maintenance and renewal. Forecasts indicate an improved cattle price in the near future, as demand recovers and supply remains tight.

Indonesia planning to ban offal imports

25/02/2010

The Indonesian Agriculture Ministry last week announced that it plans to ban imports of beef offal as part of its' move towards beef self-sufficiency. The move comes soon after the announcement of a Rp 2 trillion (A$240 million) spending plan to increase domestic beef production to reach self-sufficiency by 2014 (Jakarta Post).

According to the article, the government expects that with imports no longer being used to meet demand, local producers will increase domestic production. Importers in Indonesia have objected to the plan, saying that the fall in supply will lead to higher prices in the domestic market.

The process of banning imports involves notification to the World Trade Organisation, at which point other countries are able to make objections.

NZ beef starts 2010 strongly

25/02/2010

New Zealand (NZ) beef and veal production rose 12% in January to 62,738 tonnes cwt, with slaughter rising 9% over the same period to 223,741 head (Statistics NZ).

Production in the North Island rose 26% for the month to 50,227 tonnes cwt, with increasingly dry conditions in parts of the Island forcing producers - mindful of previous year's drought affected prices - to quit stock in large numbers. In contrast, South Island production fell 22% to 12,510 tonnes cwt, with ample rainfall allowing producers to increase stocking rates.

Prices have fallen accordingly, aided by the high NZ$ - 32% higher year-on-year at 72US¢ (Infoscan). Over-the-hook rates for steers, cows and bulls averaged 11%, 18% and 14% less, respectively, in January than a year earlier.

With widespread rainfall throughout February reportedly providing good grass cover, NZ beef production can be expected to move back in coming months, this will be encouraged by poorer schedule prices (NZX Agrifax).

Taiwan push for US beef referendum beef moves forward

25/02/2010

The Consumers' Foundation in Taiwan has moved to the second phase of its proposed referendum to ban some US beef imports. This follows discontent among the opposition and consumers with the government's decision last year to allow US bone-in beef, ground beef and bovine offal and spines to be imported after a lengthy ban due to Bovine Spongiform Encephalopathy (BSE).

Having obtained the required 86,000 signatures (0.5% of voters in the last election) to pass the first phase of the referendum approval process, the Foundation is now looking to collect the signatures of 5% of eligible voters (860,000) by the deadline set for August 10, 2010 (http://www.etaiwannews.com).

The Foundation hopes the public, by showing their support for the referendum, will send a message to the US government about their fears of BSE in US bone-in beef.

Firm sales of imported beef at Japanese supermarkets

25/02/2010

Japanese retail food sales declined by 2% in 2009 year-on-year (the Japan Chain Stores Association), largely due to constrained spending by budget-conscious consumers, but also because of retailer price competition. Imported beef did relatively well during the year compared to other food products, according to the association's monthly reports in 2009.

The reduction in retail prices - between 5% and 20% below the previous year - seems to have stimulated an appetite for Australian beef among Japanese consumers.

US beef also increased its' presence at Japanese retail in 2009, with major supermarkets now carrying US beef regularly. However, Japanese retailers are still cautious about US beef as supply continues to be limited under the current import protocols (all US beef must be sourced from cattle under 21 months of age).

Despite some signs of Japan's economic recovery, the downward trend continued in January 2010, with food sales falling 4% year-on-year. Imported beef was reported as one of ‘healthy sales' items during the month by the association.

Win-win with methane control

Reducing methane emissions is a win-win for livestock producers according to a report in Stock Journal, helping them improve the efficiency of their herds and flocks and also meeting any future targets in greenhouse gas emissions.

That was the message from Victorian Primary Industries research scientist Dr John Graham, who is based in Hamilton, when he addressed the Upper South-East Beef Group carbon forum in Naracoorte.

Agriculture is Australia's second largest producer of greenhouse gas emissions at 16 pc - largely made up of methane and nitrous oxide - and burping cows are accused of being amongst the worst culprits.

But between six and 10 pc of energy gained from livestock grazing is lost through methane production but Graham says the more productive and fertile a herd, with animals finished off pasture sooner, the better for the producer and the environment.

Furore over ‘double standards'

Beef imports from countries which have had BSE will not be subject to the usual import risk assessments which import bans are eased in just a few weeks according to a report in Stock and Land.

And the paper says that the Australian beef industry will also have no say on the protocols which will be used to set the new rules for importing beef from these countries and onto our retail shelves.

This is despite industry leaders having said that they would be involved in developing the protocols when the controversial decision was made in October last year to lift the BSE ban.

Industry groups are accusing the government of double standards because the government is ignoring Biosecurity Australia's import risk analysis requirements and won't be announcing its protocols - without industry input - until March 1.

Industry wants in on protocols

Cattle Council of Australia president Greg Brown says the beef industry will insist on being involved in the drawing up of beef import protocols and product traceability will be paramount in these demands says The Land.

News that no import risk assessment (IRA) has been included in the Federal government's plan to allow imports from nations with BSE has shocked beef industry leaders, who have said they were under the impression they would be contributing to the new import program.

Brown told the paper that for Canberra to not insist on traceability or livestock identification is a double standard as far as the industry is concerned and "something we do not want to be part of".

"We have put a lot of effort and money into the development of our own industry traceback and to now allow people in with lower standards is, in my opinion, utterly ridiculous," Brown says.

Quota breakthrough opens UE, Russian beef markets

Some deft manoeuvring by Australian negotiators in both Europe and Russia has substantially broadened export opportunities for the beef industry - for both this year and beyond says Stock and Land.

In the EU market Australia now has access to a brand-new 20,000 tonne multi-country quota for the high-quality, grainfed beef market - reportedly the first new quota category in 30 years for the EU.

In the emerging market of Russia, Australia appeared likely to be locked into a miserly 10,000 tonne quota until its position was recently renegotiated into another shared allocation of about 448,000 tonnes.

The new EU quota is hedged about with strict criteria: beef must be 100 days grainfed to Aus-Meat standards and must meet additional age, diet and days-on-feed requirements over and above existing accreditation schemes here and in Europe.

60 pc black hided

CAB's ongoing success has contributed to more than 60 pc of US cattle being black hided, with Angus bulls selling at healthy premiums according to a report in the Stock and Land.

The paper says that around 14.1 million head of cattle were identified for CAB evaluation last year but only 2.8 million were certified - which is still an eight pc increase on the previous year, while acceptance rates lifted 19.8 pc.

Meanwhile the mirror success of CAAB in Australia has created a new position for a supply relationships co-ordinator - to be based in the South-East of Queensland - for the program.

The position involves working with stakeholders in the technical and marketing areas as well as auditing the production of Angus beef for the various Angus programs which are verified by CAAB.

Feedlots get green tick

Research showing the positive environment aspects of beef cattle feedlot production has been welcomed by the Australian Lot Feeders Association (ALFA) according to a Stock and Land report.

Conducted by the University of NSW, the research addressed the widespread misconception that beef cattle feedlots are resource and energy intensive and worse for the environment than organic or grassfed beef production.

The report used a life-cycle impact assessment and concluded that beef from feedlot cattle had between 38 pc and 50 pc lower methane emissions per kilogram of hot standard carcase weight compared with organic and grassfed beef production.

ALFA president Jim Cudmore says the news has come at a good time as the industry celebrates increased access to the EU grainfed market - news he describes as the right "tonic" for the feedlot sector in difficult times.

Red meat not to blame for CO2

Stock and Land says accusations that "less meat means less heat" implying cutting back on livestock production is a panacea for global warming are wide of the mark according to the Australian Farm Institute (AFI).

AFI executive director Mick Keogh points to some of the flaws in the way livestock emissions are accounted for in several life-cycle analyses (LCAs) being used to make the case against red meat production.

A WorldWatch report released last year attributes 51 pc of all manmade greenhouse emissions to livestock production but did so in its LCA partly by including the CO2 exhaled by livestock.

"As a large number of other authorities - such as the UN Food and Agriculture Organisation and Intergovernmental Panel on Climate Change - have pointed out, CO2 exhaled by livestock is derived from plant matter that has grown by fixing CO2 from the atmosphere, and is therefore effectively emissions neutral," Keogh says.

Fence waterways cattle owners told

Environmentalists in the alternative-thinking mecca of Nimbin on the State's Far North Coast are pushing to have cattle farming declared a "key threatening process" under the NSW Fisheries Act says The Land.

Their intent is to force producers to fence off all river frontages on cattle properties, saying other commercial business ventures are already subject to strict controls about what they allow into the water.

If successful, cattle access to waterways would be officially included alongside broad-scale vegetation clearing, weeds such as lantana and pest animals such as rabbits and foxes, which are categorised as key threatening processes.

According to the paper the campaigners are saying that protecting the health of the State's waterways needs to be considered both a start-up and ongoing cost of doing business in the livestock sector.

Contamination examination on Beef Spectacular Agenda

Many beef producers might be losing out on potential benefits - and profits - through a lack of awareness of diseases and contamination in their herds according to a report in The Land.

That is one of the key messages which will come from the Industry and Investment NSW (I and I) seminar which will be staged at this year's NSW Beef Spectacular and Trade Show at Dubbo from March 4-6.

The paper reports that Gunnedah-based I and I animal biosecurity technical specialist Belinda Walker says not only could these problems cost individual enterprises, they could also hurt the wider industry through lost market access.

Walker says this could particularly occur when contaminated food enters the food chain and says there is not a month which goes by that her department does not receive notification for lead poisoning - just one alarming example of what she sees as a serious issue.

Pittsworth, Killarney works close

The future of the Pittsworth and Killarney multi-species abattoirs on Queensland's Darling Downs - and that of their 200-plus employees - remain in limbo following the sudden closure of both plants two weeks ago by owner Leitch Pastoral Group according to Queensland Country Life.

About 230 production staff have been stood down and a company spokesman was due to issue a further directive over the longer-term future of the plants last week but was already stressing that the company is not in receivership and that neither plant is on the market.

The paper says rumours about the financial position of the Leitch Pastoral abattoirs have been circulating through the industry since last August but the company has continued to trade at a reduced level of activity since.

Operations manager Rob Doro says a combination of factors have placed the business in financial difficulty, including the ability to source suitable stock and bad debts putting significant pressure on the cashflow.

Deepest cut as numbers hit abattoirs

Australia's abattoirs will not be able to find the millions more animals they will need to process this year according to a national Rural Press report, and instead face tough consolidation or closure decisions before winter.

Two hundred meatworkers on Queensland's Darling Downs had their work suspended more than a week ago while another 300 are searching for work after losing their jobs with the Burrajong meatworks at Young going into receivership.

The report suggests that at least a further five NSW and Queensland abattoirs have already cut staff and amalgamated shifts since this time last year and even Halal goat abattoirs are feeling the squeeze.

Thousands of meatworkers who cut up and pack will not be needed this year as it is forecast Australia will slaughter far fewer cattle as a result of live export passing one million head and climbing while sheep/lamb throughput will dip nine million head.

Roma Saleyards head for court

The fate of the proposal to construct a second set of saleyards at the key marketing centre of Roma will be decided in Brisbane's Planning and Environment Court next month says Queensland Country Life.

According to the Maranoa Regional Council some 15 days have been allocated for the hearing of the matter, which the paper says is not likely to begin proceedings until late in the month.

In December 2007 local graziers David and Suzanne Bassingthwaighte filed an appeal against a Roma Town Council decision to refuse their application for a 40-hectare cattle saleyard on the Warrego Highway on the western outskirts of Roma.

Maranoa Regional Council was required by law to take on responsibility for seeing the case through after amalgamation and its planning and environment director Robert Hayward anticipates the related legal costs will chew up at least $100,000 of ratepayer cash.

Indonesian live export cattle figures soar

The extraordinary dominance of trade with just one customer country - Indonesia - is in clear evidence in calendar year live cattle export figures just released according to Queensland Country Life.

Overall cattle exports last year reached 948,240 head - a 10 pc increase on the previous year and the highest since 2002, with Indonesia remaining Australia's largest market with a record 768,133 head last year.

The paper says that is a staggering 81 pc of Australia's overall live cattle export business and in 2009 the value of all cattle exports reached a record high of $661 million, making it a major player in the beef market.

MLA Livestock exports manager Michael Finucan says that it is encouraging to see that the demand for high quality, healthy and disease-free Australian cattle remained strong in 2009 while many other industries decreased significantly as a result of the global financial crisis.

MSA expert: Why older beef is still good eating

Labelling meat from eight-tooth cattle as "low grade" makes no sense and will only cause confusion on retail shelves for beef consumers according to a report in the Queensland Country Life.

Victorian beef producer Rod Polkinghorne, hailed as the architect of Meat Standards Australia (MSA), has no qualms about making that assessment from years of seeing what works, and doesn't work, when it comes to marketing table beef for retail sale.

As Polkinghorne, a strong critic of the JR McDonald-led Torbay labelling legislation in NSW, told a Senate inquiry last year: "A grading system becomes relevant when it conveys a clear, simple cooked result to a consumer".

He says this is what Torbay misses. Consumers do not buy carcases and do not care what the animal looked like and age and dentition are no predictors of eating quality, which is all he says consumers want.

MLA UPDATE

Limited Australian supply impacts Korean beef stocks

19/02/2010

Widespread rain throughout Australia's eastern seaboard may further impact Australia's beef supply to the Korean market, as cattle traffic and processor activities remain subdued.

Reportedly, the Korean wholesale beef market is slowly increasing its trade activity, but overall, prices of imported beef are steady. As Lunar Year sales have passed, retail demand for imported beef has increased as stocks are restored - however, limited supply from Australia may benefit other beef suppliers.

Australia exported 4,197 tonnes swt of beef to Korea from 1-16 February this year, a drop in volumes compared with the 8,306 tonnes swt exported in February last year.

Chilled wholesale prices creep up in Japan

19/02/2010

With lower beef exports from Australia in January (down 18% year-on-year), wholesale prices of Australian beef in Japan have started to move upward this month, particularly chilled items. Chilled grassfed fullest prices averaged 790 yen/kg this week, up 6% from a month ago, or 17% higher year-on-year. The Japanese trade is aware of the strong A$ and short supply of cattle in Australia, and anticipates the prices to firm further.

In the beef export market, Japanese buyers remained interested in various items this week, but a shortage of product, competition from other markets, and the robust A$ continued to be a challenge. Trimmings have attracted particularly good attention, according to Australian exporters.

Another challenging year ahead for beef

19/02/2010

Australian cattle producers and beef exporters can expect another year of subdued prices and lacklustre export demand - but the low-point in prices should have passed, according to Meat & Livestock Australia's (MLA) 2010 Cattle Industry Projections, released this week.

Cattle prices are expected to post only modest improvements in 2010, led by cows and young cattle. Prices for heavy export cattle categories are likely to be the most constrained due to low import demand, the high A$ and increased competition faced from US beef in Korea and Japan.

On the back of the recent rainfall, and a smaller cattle herd due to previous poor branding years, cattle slaughter is forecast to tighten 4.5% in 2010, to 7.4 million head - the lowest since 1996 - and beef production by 4%, to 2.05 million tonnes cwt.

With tighter supplies, a continued high A$ and intense competition from the US, Australian beef exports are expected to fall 5.7% in 2010, to 875,000 tonnes swt. These factors, plus tenuous economic conditions and higher Korean beef production, is expected to see Australian beef exports to Korea fall 18%, to 95,000 tonnes swt, and to Japan by 7%, to 330,000 tonnes.

Despite an expected supply-induced recovery in US beef and cattle prices, the high A$ and lower Australian supplies are expected to limit the recovery in shipments to the US market to only 3%, or 260,000 tonnes swt.

For 2010, Indonesia is expected to continue expanding both beef and live cattle imports, while exports to smaller markets, including the Middle East, the EU and CIS are also expected to hold firm or expand.

After a jump in total consumption in 2009, the domestic market will remain an attractive outlet for Australia beef, with consumption increasing slightly, to 740,000 tonnes swt in 2010.

Storm-induced tight US supplies push prices higher

19/02/2010

Disruptive weather and tight cow supplies in the US combined to push prices higher this week for both fresh domestic and imported beef.

CIF prices for Australian 90CL averaged 154.5US¢/lb CIF, up 5US¢/lb on last week, while FAS prices in A$ terms gained 9.1A¢/kg over the past week to 350.4¢/kg FAS.

The week began in a bullish mood but US buyer activity tapered off towards the end of the week.

Tight supplies in both Australia and the US remain a key driver of the imported beef market dynamics, with US cow slaughter declining sharply from its peak in mid-January due to heavy snow falls that would have been far more useful to the Winter Olympics base in Vancouver.

Argentinean beef demand to drop in 2010 as prices surge

19/02/2010

Argentinean beef consumption is forecast to drop to 50kg cwt per capita in 2010 from 70kg cwt in 2009, as a result an expected fall in beef production. Due to tightening supply, local beef prices increased 40% in the month to 13 February 2010 (Infocampo).

Local analysts expect beef production to fall by around 1 million tonnes cwt this year, as producers rebuild herds. Slaughter is forecast to decline 30%, to 11.5 million, from 2009's record slaughter of 16.3 million head.

Last year's high slaughter was the result of the herd liquidation, influenced by restrictive government policies to control beef price rises in the domestic market, and the severe drought experienced since mid 2008 (CICCRA). Lighter average slaughter weights also resulted from the subsidies focused on light steer production for the domestic market.

According to industry sources, the government will continue to subsidise feedlot production and cap prices at the saleyards and at wholesale.

In addition, the government has already announced that the issuing of export certificates and "Hilton" quota allocations will be distributed to packers who supply the domestic market at low prices, limiting Argentina's exports in 2010.

Rain, rain, rain

19/02/2010

Heavy rainfall continued this week, with storms drenching parts of eastern Australia for the third week running.

Rain also spread to Australia's interior, with Moomba in SA's far north-east recording 128mm, while Reeves Knob in Victoria's Gippsland recorded 211mm. Unfortunately, the majority of WA and western SA again missed out.

Many regions have now recorded their highest February rainfall in decades, with 571mm recorded at Narooma on the south coast of NSW, and 227mm recorded at Murrumburrah near Young. While focus will now invariably turn to the season ahead for southern Australia, the southern oscillation index reportedly remains low, and good autumn rainfall remains crucial.

Good falls were recorded across key beef-producing regions such as; Toowoomba (89mm), Roma (78mm) and Charleville (23mm) in Queensland, and Casino (37mm), Dubbo (65mm) and Wagga Wagga (84mm) in NSW.

Some rain is forecast for the week ahead across much of Queensland, the tropics and south eastern Australia, while a high-pressure system is expected to keep the majority of WA dry.

Cattle market wrap

19/02/2010

Rainfall drives young cattle prices

Recent widespread rainfall across Eastern Australia has been a factor behind strong competition between restockers and feeders. This has resulted in a lift in prices for young cattle at eastern states' markets covered by MLA's NLRS. This is highlighted by the EYCI, which reached 336¢/kg cwt - a gain of 11¢/kg cwt on last week at the completion of Thursday's markets.

The price rise has partly been driven by rain which has allowed producers to hang onto light young cattle rather than send them to market. Young cattle throughput was 7% lower than last week, although this was 24% higher than the same period last year. NSW and Victoria have registered the largest falls in young cattle yardings, down 15% and 17%, respectively.

Strong demand from restockers and feeders as suitable young cattle become harder to find has also had an influence on prices. The average price in the eastern states paid for vealer heifers going to restockers increased 7.3¢ on last week, and the same category going to feeders sold 3.1¢ dearer, to average 162.7¢/kg lwt. Prices for the steer portion were also up. Vealer steers to restockers averaged 179¢ - up 2.5¢ on last week and 16¢/kg stronger than the same time last year. Those going to feeders averaged 167¢, to be 4¢/kg stronger on last year. Yearling steers going back to the paddock were 6¢ dearer, with prices averaging 160¢/kg lwt.

Grown steer prices leap

Prices for grown steers reacted to increased northern demand, following rainfall in Queensland which restricted stock movements from many properties. Most categories made gains of 6¢ to 8¢/kg on top of similar rises the previous week. The national Japan ox indictor climbed 1¢ to finish Thursday at 171¢/kg lwt.

The highest price in the saleyards for the week was 194.6¢/kg lwt for a heavy weight pen at Moreton in Queensland. The best bullocks sold to 191.2¢ at Dalby on Wednesday and Murgon on Tuesday. Price improvements filtered south, with both Bairnsdale and Millicent receiving much improved rates on Thursday.

Cow prices rise

Cows were dearer at MLA's NLRS reported markets this week. The US cow indicator increased 3¢ on last week to average 129¢/kg lwt. The slight easing of the A$ at the end of last week, and an increase in export enquiry has resulted in a lift in processor demand, and a subsequent increase in prices paid for cows to slaughter.

The number of cows going to slaughter is falling, as competition from restockers intensifies. Processor purchases were down 11% nationally on last week, compared to a 5% increase in cows being purchased by restockers.

Medium and heavy cows to slaughter in NSW were between 3¢ and 5¢/kg dearer on last week, while those going back to the paddock realised a 7¢/kg lwt increase on the back of significant rain.

Rain lifts livestock prices

19/02/2010

The widespread eastern states' rain over the past week has largely filled in the areas that had missed previous substantial falls, especially in the Darling Downs and central/southern NSW. This brings the promise of a good finish to the northern monsoon and start to the southern autumn. However, mild conditions and autumn follow-up rains will be needed to ensure southern pastures and winter crop planting.

These rains again tightened stock numbers and boosted restocker demand. Hence, the EYCI jumped a further 11¢ to 336¢/kg cwt, 9% higher than a year earlier - bringing the rise since its low point in December to 21%. Export categories have also been helped by a partial recovery in prices from Japan and the US.

Similarly, lamb and sheep prices jumped this week. Both the trade and heavy weight lambs were around 510¢/kg cwt - record prices for February and around 20% above a year ago. Similarly, sheep prices returned close to their January record, at 324¢/kg cwt, up 70% on last year.

Canada's herd races downhill

18/02/2010

Canada's cattle herd continued its downhill slide, posting a 1% fall to 13 million head as at 1 January, 2010.This inventory marks the lowest herd for 15 years and reinforces the downsizing trend the industry has undergone.

Further, the tally of 4.2 million beef cows on Canadian farms as at 1 January is the lowest since 2000, down 4.3% year-on-year.

The Canadian cattle and calf slaughter in 2009 was 3.7% lower than in 2008 and Canadian cattle exports were down 32% from 2008 - partially attributable to the US's mandatory country-of-origin labelling program which came into effect last year (Daily Livestock Report).

Hogs suffered a similar fate, falling to 11.6 million head, 4.5% lower compared with a year ago and thereby registering a 12-year low.

Lunar Year sales makes Korea's retailers smile

17/02/2010

Korea's department stores reported strong gift set demand ahead of the Lunar New Year celebrations. Lotte Department Store said their sales of holiday gift sets from 29 January to 11 February jumped 35.8% year-on-year, while Hyundai and Shinsegae Department Stores recorded sales increases of 22.9% and 39.7%, respectively, during the same period (JoongAng Daily).

Reportedly, retailers stated that the lift in sales was a result of an improvement in Korean consumer sentiment due to the rapid economic recovery.

While department stores are one of Korea's fastest growing retail segments - discount retailers also reported a lift in sales ahead of the Lunar Year celebrations, held on 14 February. Shinsegae's E-Mart have reported a 15% lift is sales of gift around the country year-on-year (from 4 February to 11 February), with beef rib gift set sales increasing 20% year-on-year. Tesco's Homeplus and Lotte Mart also indicated a rise in gift set sales during this period (JoongAng Daily).

Cattle market alert

17/02/2010

Rainfall lowers numbers

Widespread rain across NSW has seen national yardings fall by 19% on the same time last week at MLA's NLRS reported markets. The major markets affected were Forbes where numbers dropped by 76%, Wodonga, which saw a reduction of 60%, Wagga dropping by 52% and Gunnedah, which fell by 45%. Queensland went against the trend with numbers up 7% after rain had lowered numbers over the past few weeks although this is up three fold on the same time last year.

Quality of young cattle in most regions has improved as producers opt to hold onto to unfinished cattle after recent rainfall, although there were some plainer quality runs in South Australia and Southern Victoria.

Competition drives prices

Strong competition between restockers and lotfeeders for a reduced yarding of young cattle has seen prices continue to improve this week. A number of NSW feeders and processors have lifted rates in anticipation of a tightening of supply. Queensland OTH rates remained the same as some processors opted to shut down rather than pay higher prices.

Competition has seen the EYCI lift 12¢ on last week to finish Tuesday at 333.5¢/kg cwt. Trade steers lifted 4¢ to 173¢, Japan ox and US cows have both lifted to be at 172¢ and 128¢/kg respectively.

New Zealand farming less sheep and beef, more milk

16/02/2010

The long-term shrinking trend for the New Zealand (NZ) sheep flock continued in 2009, with a 5% reduction on the previous year's numbers to 32.4 million head in June. At the same time, beef cattle numbers were fairly static; falling 1% to 4.1 million head, while dairy cattle numbers rose 4% to 5.8million - with one milking cow to every New Zealander (Statistics New Zealand).

Poor returns to sheep farming, farm conversions to dairy, dairy support (such as agistment and growing hay) and successive drought years in some regions were reportedly behind the movement in numbers. Despite the fall, Meat & Wool New Zealand has forecast a lift in export lamb production in 2009-10 - up 5% to 411,500 tonnes cwt, with a record lambing percentage (124%) boosting numbers available for slaughter, while also allowing for some restocking.

The ever-larger NZ dairy herd means increasing cow and heifer slaughter, at 1.4 million in 2008-09, 56% of total adult cattle slaughter. This in turn means larger amounts of manufacturing beef production, which contributed 53% of NZ's beef and veal exports over the same period - 189,373 tonnes swt (NZ Meat Board).

Russian government to support meat production

16/02/2010

The Russian government has approved a new plan to increase domestic food output and reduce the country's import dependence. Within the plan's objectives, domestic meat production should increase 85% by 2015.

The plan follows other recent government incentives which have been successful in increasing pork and poultry production. These increases have also been supported additional import restrictions for these products, such as the latest ban on US poultry as a result of chlorine treatment limits.

In addition to the incentives, the Russian Meat Union has stated that the government will need to increase meat import barriers and provide producers with long term loans of no less than 10-15 years.

According to the Russian Ministry of Agriculture, domestic meat production rose 14% in 2009 to 3.3 million tonnes cwt year-on-year. However, beef production continues to decline due to the lack of profitability in the industry, while unprocessed beef imports in 2009 decreased 22% to 635,842 tonnes swt, due to the disruption in trade after 2008's financial crisis and reduced processed beef demand.

Brazil continued to be Russia's largest supplier despite imports from this market declining 20% to 322,831 tonnes swt in 2009. Imports from Argentina jumped 97% to 136,972 due to increased production in 2009, but are expected to decline this year.

Scrap it and start again beef reformers say

The push has begin for a restructuring of the beef sector according to The Land, sweeping aside existing producer organisations and beef levies, and opening the industry up for reappraisal.

Led by Inverell processor John ‘JR' McDonald, of Bindaree Beef, who helped drive the contentious "truth in labelling" legislation in NSW's parliament last year, the grassroots campaign is hoping to pull more than 1200 producers to its Armidale forum on February 27.

Nationals senators Barnaby Joyce and Fiona Nash and Liberal Bill Heffernan have already agreed to speak at the forum, which will be chaired by Sydney broadcaster Alan Jones and McDonald's daughter Leigh Belbeck.

McDonald and his insurgent supporters contend that beef producer and processor profits are disappearing into the levies that they say have done nothing to address the declining beef consumption figures for the past 20 years of declining prices.

MLA says history repeats in prices

The beef market trends which Bindaree Beef says are showing how the levy system is failing are, in fact, similar for most rural commodities across most developed countries MLA chief economist Peter Weeks has told The Land.

As productivity climbs the cost of goods tends to fall and Weeks has told the paper that is the trend which has been at work in the world beef sector, albeit it with complicating factors.

For instance, flat real returns to beef producers across the past two decades are in contrast to significant climbs in returns to lamb and mutton producers but Weeks says the confounding factor here is sheepmeat was traditionally a by-product to wool, which has declined, leading to a massive reduction in the national flock.

He also says claims levy money has done nothing to help miss the big picture. Consumption dropped in the 1990s when red meat's health and nutritional benefits were under a cloud but in the past 10 years there has been a 30 pc hike in real terms in Australian expenditure on beef.

Food for thought in feed footprint study

A report in The Land The clean, green image of a steer in lush pasture has a hidden cost - it's often not as greenhouse friendly as the steer in a less-picturesque feedlot according to an MLA-funded study.

The study also showed Australian red-meat production has one of the lowest carbon emission profiles in the world, with a carbon footprint half to a third lower than those often quoted.

The paper says that the life cycle analysis compared the greenhouse costs of producing a kilogram of grassfed beef to a kilogram of grainfed beef and found grain feeding is more efficient.

It is already well known that a grain diet, which is more easily digestible than the cellulose fibres of grass and so called on fewer methane-producing microbes, would in itself produce less methane.

Talks for better beef production

The importance of beef producers implementing stringent biosecurity measures is to be illustrated at the 2010 NSW Beef Spectacular and Trade Show, Dubbo, which The Land says will be held from March 4 to 6.

As part of a number of presentations and discussion forums run by Industry and Investment NSW (I and I) at Dubbo, a seminar on how the beef industry can keep free of major diseases will be held.

According to I and I industry leader, beef development, Steven Exton, Wagga Wagga, the event will also include a seminar on value based payment systems and how such methods impact on beef producers.

Information of the event's feedlot trial at Cargill Beef Australia's Jindalee Feedlot and how beef farmers can impact on the quality of meat they produce will be available from the I and I static displays at the NSW Beef Spectacular.

BSE fears on import policy

Australia's beef cattle industry has been "ambushed" by the Federal Government according to a report in the Weekly Times, which says Canberra will allow imports of beef from BSE - or mad cow - disease-affected countries.

Liberal Senator Bill Heffernan said alarm bells should be ringing after the recent Senate hearings already revealing that an import risk assessment would not be performed when the imports are permitted from next month.

Senator Heffernan says that there will not be any consultation with industry on the protocols required of countries exporting to Australia; that we will accept meat from BSE nations without full traceability and the author of the report advising the change of policy was given little more than a fortnight to complete it.

The issue has also split the industry with the Australian Beef Association accusing the levy-funded Red Meat Advisory Council of treason for writing to the Federal Government to request the relaxation of beef import instructions.

Export lift holds key

All that is missing is an increase in demand from Japan or the US and prime cattle markets will be ideally positioned to benefit from a lower Australian dollar, good summer pasture and crops and rain across NSW and Queensland says Weekly Times.

The paper has reported that Meat and Livestock Australia says that a lift in demand from either of these major export destinations will completely change the current depressed prime cattle market.

After positive movement last month, the Eastern Young Cattle Indicator has stabilised at about 320 cents a kilogram (carcase weight) - which is up more than 40 cents since the close of trade last year.

According to Meat and Livestock Australia, from this point on any further major improvement will rely on an increase in export demand, which it considers unlikely given exports to the US last year were the lowest since 1997.

Te Mania Angus structures new-look sale

According to a report in the Weekly Times, Te Mania Angus will be the first stud to offer estimated breeding value (EBV) figures for structure when it releases its 2010 on-property bull sale catalogue.

The Mortlake-based seedstock operation, which has assessed and recorded the structure of 7000 individual animals, believes this advance is in keeping with its long-term approach to provide clients with more information.

Te Mania Angus director Tom Gubbins told the paper the new data being made available is all about "giving our clients a better snapshot of an individual animal's genotype".

"Structure EBVs are designed for those clients who want to concentrate on the structure within their herds, and for this the genotype information is always better than the phenotype information," Tom says.

Livestock ID system gone

Strong, ongoing resistance from its farmers has forced the US government to dump the nation's controversial livestock identification system, according to a report in the Weekly Times.

The shock announcement has come five years after the voluntary National Animal Identification System was established in response to consumer concerns in the light of the 2003 discovery of mad cow disease in a Washington State dairy cow.

However, US cattle producers in particular are concerned with the potential cost, liability and privacy issues associated with the system and the Obama government says NAIS will be replaced by a new plan, which is expected to take at least another two years to be developed.

US Agriculture Secretary Tom Vilsack says he has decided to revise the previous policy and offer a new approach to animal disease and traceability with changes which respond directly to the feedback we heard," he says.

Wellard eyes northern assets

Major live exporter and shipping owner Wellard has confirmed its interest in land acquisitions in northern Australia says Queensland Country Life, but the company says they will not be used for breeding purposes under any significant move into vertically integrated cattle supply.

Responding to recent rumours in property circles, the company confirmed that among other prospects it has examined some of the northern Australian grazing assets currently being offloaded by NT cattleman Stirling Buntine.

Wellard managing director Steve Meerwald says his company is not in the business of breeding its own beef cattle to put on its own live export boats - with more than 300,000 cattle going out annually it would require a massive investment to even make a dent in that figure.

Instead, he has told the paper that any move to get into the northern land market would be designed primarily to help smooth out the company's current live export supply chain.

Agents bid for better safety

Change is coming to a saleyard near you says Rural Press. That's the blunt message from new Australian Livestock and Property Agents Association chairman Brendan Wade as he prepares to hit the road in an industry push to clean up unsafe worksites.

The seminar tour will go through Dalby, Emerald and Roma and will then be taken further throughout key selling centres in Victoria and NSW - with more dates and locations to be finalised in the future.

The additional workload might be considered a strain on time and energy for Landmark's already busy NSW/Queensland livestock manager but he says that he prefers to call it a labour of love.

Since taking over the reins of the peak organisation for the livestock and property agents industry late last year, he has made no secret that workplace safety for members will be the top priority of his two-year term.

First stud sale at CQLX

Visitors to this year's Rockhampton February 15-17 All Breeds Sale noticed some big changes happening around the saleyards at the Central Queensland Livestock Exchange (CQLX) says Queensland Country Life.

As the first stud sale to be held at CQLX since the new managers - Regional Infrastructure Pty Ltd - took over in January, visitors will have seen decommissioning of the old timber yards is now underway.

It's just the start of RIPL's multi-million dollar upgrade of the complex under its 30-year lease - which is a $100,000 per year deal with the Rockhampton City Council with an additional $250,000 transition fee paid over 30 months.

RIPL plans major upgrades to the site at a commercial cost between $14 million and $18 million and RIPL chairman Garry Edwards says the redevelopment will take place in stages.

MLA UPDATE

General livestock wrap

12/02/2010

State of the state - Tasmania

After a very good spring, most of Tasmania has experienced the best summer in a number of years, with the improvement most noticeable in the south. The Midlands and Southern Midlands experienced a good season, which allowed producers in these areas to rebuild stock numbers and also hold onto stock.

Conditions throughout January and into February have been very hot and dry, with some recent rainfall giving some respite. More rain is expected leading into this weekend. As a result, there have been some lambs in wool showing the effects of the warmer weather, and some vealers lacking condition. If the forecast rain transpires, it will be well timed for fodder crops in the Midlands.

Very few shorn lambs have been offered so far this season, with many producers not shearing early. Both lamb and mutton numbers have been short compared with recent years, although there are still fair numbers heading across Bass Strait - demand from mainland restockers and processors has assisted. There have been large numbers of sheep and lambs offered for auction by agents and saleyard numbers at Killafaddy have been 40% higher year-to-date, although tightening since mid-January. Sheep and lamb slaughter was 17% lower than last year. Currently, average over the hooks lamb prices are 440¢ for trade weights and 435¢/kg cwt for heavy weights. Mutton rates are between 280¢ and 292¢/kg cwt.

Cattle supply has also been tighter, as seasonal conditions have allowed producers to hold onto stock. Numbers at Killafaddy have been lower compared with the same six-week period at the beginning of last year. Prices have been lower both in the saleyards and over-the-hooks than the same time last year. Currently, trade steers averaged 290¢ and cows 225¢/kg cwt direct to works.

Lambskins holding strong

Demand for shorn lambskins held firm, with interest for skins under one inch particularly strong due to supply shortages. The lower value of the A$ has helped, yet price resistance is still being witnessed from international buyers.

Merino sheepskin prices lifted again, as skins with over three inches of wool are very short in supply. Crossbred sheepskins lifted slightly on selected lengths.

A$ assists hides

Green hide prices have improved, largely due to the weaker A$ and recent lower slaughter numbers at some abattoirs. Slaughter and saleyard numbers have begun to pick up over the past week.

Overseas leather markets have been moving higher volumes, but prices remain firm, with only exchange rate changes having an effect on prices received for export hides.

Goat prices cheaper

The majority of processors eased their over-the-hooks goat rates this week. There was, however, one contributor who lifted rates in order to secure greater numbers which was a positive sign for goat trading.

Contributors are reporting more interest on the heavyweight goats, which is an indication that there is some export inquiry. International demand remains strong, which has been aided by the lower A$ seen in recent weeks.

Eastern states goat slaughter for the week ending 5 February totalled 31,731 head, 35% higher on the previous week.

Australian grinding beef demand up sharply

12/02/2010

Prices for imported beef in the US moved sharply higher this week as US end users competed strongly in a market lacking supply.

CIF prices for Australian 90CL averaged 149.54US¢/lb CIF, up 5.5US¢/lb on last week, while FAS prices in A$ terms rose 12A¢/kg over the past week to 341.3¢/kg FAS.

A surge in domestic grinding beef values - in part due to severe weather conditions presently disrupting the US supply chain - led to a correspondingly rapid rise in imported beef prices.

The price rise is tempered with the observation that US buyers are tending to be hesitant to take positions too far out.

Meanwhile, demand for the grilling season, which traditionally gears up towards the end of February and generally marks an increase in loin cut use, remains uncertain.

Recovery in beef export prices lifts cattle values

12/02/2010

Export prices to our two largest beef markets, Japan and the US, have risen by around 20% over the past two months, principally due to low supplies out of Australia and a small fall in the A$ from around 92 to 89US¢.

Chilled grassfed and grainfed fullset prices (in A$ terms FAS) to Japan are now 11% and 3%, respectively, above the average for 2009. Demand for grassfed beef has been assisted by low beef stocks in Japan and consumers ‘trading down' to cheaper grassfed product from grainfed beef in these tough economic times.

Similarly, the price of 90CL cow beef to the US (in A$ terms FAS) is now close to the average for 2009, and only 1% below the five-year average. This recovery has essentially reflected a 33% year-on-year fall in imported beef supplies.

On the back of increased processor interest and the recent rains, prices for Japan ox rose 13¢ this week to 309¢/kg cwt, bringing the lift since the lows of December to 14%. Similarly, US cow prices have risen 16% since their December low.

Heavy and trade lamb prices made a sizable correction this week, possibly in the expectation of good supplies of well-finished lambs through autumn. However, prices for restocker lambs and sheep remain close to recent records.

Koreans about to celebrate

12/02/2010

The sentiment among Australia's beef exporters this week was mixed regarding Korea's demand for Australian beef. While some traders reported lifting enquiries for post-Lunar Year demand, others indicated little activity ahead of the holidays.

As Lunar New Year (14 February) nears, Korea's retailers, online malls and food service outlets are busy satisfying consumer demand for all sorts of gift sets for their relatives, business relations and/or friends. The JoongAng Daily reported that one of the biggest trends in holiday gifts this year are goods that are accompanied with information on the product's origin, history and traditions.

An online shopping mall (Ematzel) reported that fruit and livestock product sets accounted for 67.6% and 13.2% of total sales from 25 January to 8 February this year, respectively.

Wild weather affecting US cattle

11/02/2010

Extreme weather conditions and reports of poorer feed quality in feedlots are impacting carcase weights in the US.

Steer and heifer weights for the week ending 23 January (there is a two-week reporting lag) fell 7.3kg or 1.9%, and 3.6kg or 1%, respectively, compared to year ago levels, according to the USDA.

These falls represent the equivalent of 15,000 fewer cattle coming to slaughter each week and will compound the impact of already light slaughter levels (Daily Livestock Report).

The adverse US weather has not been selective in its impact, affecting anything from the operations of a key meat distribution centre, the Port of Philadelphia; office attendance of Washington DC-based federal government staff; fed cattle and feedlot placements due to unfavourable pen conditions.

Meanwhile, the current corn crop is reportedly suffering excessive mould levels due to the current weather conditions. As a result, this is affecting yields and feed to weight conversions.

Salubrious showers reach the south

11/02/2010

Rainfall continued across Australia this week, with the south east finally having its turn with falls of over 100mm at Hay, and 150mm at Balranald in the south west of NSW. Useful follow-up rain continued across the rest of NSW - of which 82% is still drought-declared - and Queensland filling dams and providing an ideal start to winter cropping rotations. Victoria and Tasmania also received good falls, while the west remained largely dry.

Rain is set to continue over the weekend as a low pressure system moves through, bringing showers and storms first to the south, then the north and interior, before clearing next week.

NZ beef exports flat in 09 as markets falter

11/02/2010

New Zealand beef and veal exports totalled 28,154 tonnes swt in January - back 4% on the previous year. A significant fall in shipments to the US (back 22%), Canada (12%) and Japan (34%) was note quite offset by increases in beef sales to the Middle East (40%), SE Asia (174%) and the Chinas (25%) (NZ Meat Board).

Exports for the 2009 calendar year fell 1% to 354,658 tonnes swt (with manufacturing beef accounting for 53%).

Shipments to NZ's largest market, the US (which accounted for close to half NZ's volumes), declined 7% in 2009 to 165,776 tonnes swt. Shipments fell despite being largely made up of manufacturing product (78%), consumption of which was supported by recession in the US and the trend of consumers ‘trading down' in their spending patterns. The rising NZ$ - which in December averaged 27% higher at 72US¢ - was a contributing factor to the lower shipments (Infoscan).

Exports also declined to Japan (down 16% to 27,159 tonnes swt) and Korea (19% to 30,472 tonnes swt), with the return of US product and the increasingly price-sensitive nature of consumers contributing to the lower shipments. More than two-thirds of shipments to Japan went as chilled or frozen cuts (rather than manufacturing), with the figure at 96% for Korea.

In contrast, exports rose 3% to SE Asia (to 39,059 tonnes) and 52% to the Middle East (6,975 tonnes) due to strong demand for high-valued cuts, with chilled beef making up 57% and 65% of shipments, respectively. Exports for the year also rose by 37% to Canada (28,656 tonnes) and 20% to the Chinas (29,773 tonnes).

Improved interest from Japan

11/02/2010

Japan consumed 840,649 tonnes (boneless equivalent) of beef in 2009, up 3% from 2008 and the highest volume since 2003. The increase in imported beef consumption (up 4% year-on-year to 478,624 tonnes) was assisted by the higher US beef imports, while the reduction in Australian beef prices at retail and strong sales at the fast food sector also contributed to the growth. It is estimated that Australia supplied 43% of Japan's total beef requirements in 2009.

In the export market, Japanese demand in Australian beef continued to improve this week, with buyers showing more willingness to secure both chilled and frozen products. Australian exporters noted rising interest in trimming items from Japan, after several months of slow trading and subdued prices.

Higher UK beef retail prices in 2009

11/02/2010

Despite remaining stable throughout the year, average beef retail prices in the UK in 2009 were 6% higher than in 2008, because of a 9% decrease in imports and a 2% rise in beef exports (AHDB). Although total UK beef production rose 1% to 870,000 tonnes cwt in 2009, the increase did not meet demand.

Household purchases of unprocessed beef declined 3% year-on-year, due to the dearer retail prices, tough economic conditions and the substitution of beef with cheaper proteins.

UK beef prices also experienced a strong increase previously in 2008, mainly the result of lower production and the slump in supplies from Brazil, due to EU restrictions to the number of farms approved to supply the region. Although rising, the number of farms that can supply EU cattle remains low at around 1,900.

The lower imports into the UK in 2009 were mainly influenced by a weaker sterling (down 11% against the euro in 2009), in addition to a 6% decrease in imports from Ireland (due to lower production) - a country which supplies around 65% of total UK imports.

The higher exports in 2009 were also influenced by the weaker sterling and an increase in manufacturing beef demand in EU markets, which resulted in a 8% rise in cull cow prices during the year.

Brazil live cattle exports up 27% in 2009

11/02/2010

Brazilian live cattle exports recovered in 2009 after falling in 2008 fall, increasing 27% year-on-year to 530,226 head. However, the average value per head decreased 11% to US$837.

Neighbouring Venezuela remained Brazil's major destination, accounting for 75% of the total, and rising 35% to 395,746 head. Lebanon followed, accounting for 23% of the total and rising 12% to 122,839 head.

The northern state of Pará remains Brazil's main live export cattle supplying state, accounting for 95% of total Brazilian exports (or 506,438 head), of which 78% were destined to Venezuela and 22% to Lebanon.

Out of total Brazilian live cattle exports, only 2% were breeding cattle, while the reminder (98%) were cattle destined for fattening and slaughter.

Angus push Pure potential

According to a report in the Stock and Land the red-hot Australian Angus product range has been expanded further, this time with the development of a pasture-fed beef brand - Angus Pure.

The paper says that this latest offering joins the ranks of Certified Australian Angus Beef (CAAB), McDonald's Mighty Angus and Grand Angus and Hungry Jack's Angry Angus.

CAAB chief executive Phil Morley says the new brand is being promoted under the tagline "Angus Pure - the natural choice" and has been developed to deliver a pasture fed, high-quality Angus product to the widest possible market.

"We have listened to consumers on their requirement to purchase a pasture-fed Angus branded product and they can now enjoy the world's most recognised beef brand, Angus, in the pasture fed, hormone and antibiotic free  Angus Pure," Morley says.

Could cattle brands fade?

The time-old animal husbandry practice of branding cattle and horses may be about to be jeopardised in NSW says The Land as a total of 30,000 government-owned branding records decay.

An internal document, not intended for public dissemination, shows that the vital records of who owns what brands around the State might become useless within "one or two years" if they are not soon salvaged - at a cost of $30,000 or more.

The paper says that a decision about the future of the at-risk records - which are currently kept on outdated microfiche slides from as far back as the 1980s - could be made this week.

The industry dilemma puts a question mark over the declining use of freeze and fire branding - most commonly on the shoulder or rump of livestock - especially since the introduction of NLIS tags for cattle.

Surprising recovery as cattle kick

According to a report in The Land, young cattle prices throughout NSW have been bucking last year's price trends and since 2010 began have been staging a perky price recovery during January.

They also held up well at the end of the month, driven by a 55 pc surge in supply, which has also flowed over to direct-to-works rates as well and towards the end of the month the Eastern Young Cattle Indicator (EYCI) rose an astounding 6.5 cents a carcase weight kilogram in one day.

Much of this lift was due to a huge 20 cents a kilogram rise at Dalby in Queensland but the paper says that other selling centres then carried this rise through and in the past month the EYCI has lifted about 40 cents to more than 322 cents.

But the trading environment remains volatile for feedlots as sluggish export demand, due to the strong dollar and the ongoing global financial crisis, persist as the over-riding influences on the market.

Hunter counts heavy dog toll

An escalating wild dog problem is causing heavy stock losses and endless frustration in the Upper Hunter, where Timor and Murrurundi producers believe they are fighting a losing battle according to The Land.

Mid-Coast Livestock Health and Pest Authority pest animal ranger Ross Garland says 63 cattle have been killed in the Singleton district and at the same time more than 100 wild dogs have been trapped, shot or poisoned.

Murrurundi Wild Dog Association president Ben Crowe estimates livestock worth between $60,000 and $80,000 has been killed in the district during the past year, with one producer losing 100 crossbred lambs to dogs.

Mid-Coast LHPA pest animal ranger Craig Crooks told the paper a new aerial baiting campaign will begin in May when wild dogs come down from the colder high country looking for food.

Critics want to see BSE details

Government guarantees of rigorous import assessments for all beef, which will soon be allowed into Australia from countries which have bovine spongiform encephalopathy (BSE), will go under the microscope at a second Senate inquiry into the controversial decision says The Land.

A Senate committee on rural and regional affairs will scrutinise the protocols for beef imports from infected countries despite the government's insistence the risk of the decision to public health is "40 million times lower than care accidents".

Liberal Senator and quarantine critic Bill Heffernan says the new hearing is calling for precise details on the assessment protocols for all beef destined for export to Australia from the countries in question.

The paper says that it is his belief there are no such protocols, while Trade minister Simon Crean says Canberra will insist inspections are done "according to our standards" and not those dictated by other countries.

Long road to beef imports

Individual importers in the US and other BSE-affected countries will not be able to even apply to import beef, or beef products, into Australia until a series of strict assessments relating to whole country of origin are completed by Australian government bodies says Queensland Country Life.

In the lead up to March 1when the Rudd government's lifting of a ban on beef from BSE-affected countries officially starts, AQIS has confirmed import applications will not be accepted until countries, such as the US are assessed by the Australian BSE Food Safety Assessment Committee, chaired by Food Safety Australia-New Zealand.

In addition AQIS says Biosecurity Australia will also have to confirm there are no animal health risks from diseases such as foot and mouth in a country before applications will be accepted.

However, AQIS will not confirm if such assessments are underway in BSE countries. Currently only fresh (chilled or frozen) beef can be imported into Australia from New Zealand and Vanuatu.

Sydney beef cattle prize pool grows

Another $20,000 and another interbreed competition - this one for heifers - has now been added to the beef cattle prize pool for this year's Sydney Royal Show according to a report in The Land.

The Royal Agricultural Society (RAS) co-ordinator of cattle competitions, Lucinda Crighton, says that the new heifer competition will be trialled before a similar event is considered for young bulls.

The champion 20 months or younger interbreed heifer in the new competition will take home a whopping $10,000, with the champion heifer from each of the 24 breeds at the Royal going through to the interbreed lineup.

Although a sponsor for the event is yet to be confirmed, Crighton says the $10,000 is good to go. The Hordern and Urquhart trophies will also offer an extra $5000 in prizemoney each, bringing the total for each competition to $15,000.

Animal identity eye scan

As the growth in demand for livestock traceability systems continues around the world, Rural Press says novel technologies are emerging to offer aspects not provided in established systems such as NLIS.

The report says that one of these exciting new options is the commercial development in the use of retinal scanning of a beast's eye to provide a permanent record of its identity.

In a process which only a few years ago was restricted to James Bond movies, retinal scanning is being used in the US animal industry, and not just in cattle. It is also being applied to horses, pigs, sheep, llama, buffalo and even giraffes and lions.

Of all the biometric recognition systems currently in development - voice and fingerprint recognition in humans are other examples - retinal scanning is considered the most secure, and tamper-proof.

Beef insights at show

Beef producers will be able to access expert information about the projected outcomes for the domestic and international beef cattle markets at the 2010 NSW Beef Spectacular and Trade Show at Dubbo says The Land.

As part of the seminars and talks being run by Meat and Livestock Australia, projections of the year's markets will be discussed with producers to give them a step-up on their counterparts so they can plan more efficiently.

MLA events and member services manager Lucy Main says a variety of presentations will be offered by MLA to visitors at the Spectacular, which will be held in Dubbo from March 4 to 6.

The talk will aim to make producers think about reducing the cost of production, producing a high-quality product based on Meat Standards Australia regulations and how to maximise sustainable returns.

New demand lifts price

Beef cattle prices have taken a turn for the better in the first month of 2010 due to renewed restocker and feedlot demand says The Land but tough trading conditions in our grainfed beef markets continue to play a part.

The paper says that much of the buyer demand at recent prime cattle sales throughout the eastern states has been a result of the excellent rain - particularly in the north of NSW and into Queensland.

Feedlots which are currently buying straight from the paddock have also lifted their rates, although some of the buyers are adopting a "wait and see" approach to the current spike and withdrawn from the market.

The National Livestock Reporting Service says some of these feedlots had already obtained adequate supplies in December, and are not being spooked by the current smaller yardings, which have increased competition and prices.

Do all the maths first for lotfeeding

A national Rural Press report says that lotfeeding can deliver family farmers profitable returns according to the experts - but only if they know what they are doing and if they do their sums right.

Given access to good value cattle and feed, the report says that there could be few better value-adding opportunities for producers than producing finished beef cattle for domestic kill programs.

Experts say it can be a rewarding path, if somewhat challenging, but it is agreed there are three aspects to running a profitable feedlot: the cost-effective purchase or breeding of cattle, good value feed and solid kills prices.

What is less certain is where the industry is heading with biofuel pressure on feed, possible methane taxes, demand for beef and environmental issues but those who do their sums correctly before taking the feedlot plunge will be best placed to deal with any arising challenges.

RSPCA case self destructs

The RSPCA is hopeful its failed court case of alleged cruelty against South-East graziers Tom and Pat Brinkworth will not affect its relationship with the farming community says Stock Journal.

RSPCA chief executive officer Steve Lawrie says the organisation is devastated the case could not proceed. In court the RSPCA did not tender any evidence, leading to the Brinkworths and three employees being found not guilty of all charges.

Lawrie told the paper that there was misconduct by a single individual in the preparation of crucial paperwork to undertaking searches which he says had been altered in retrospect.

The Brinkworths run a massive cattle and sheep operation in the South-East of the State and are considered to be not just some of SA's largest farmers, but also some of its richest business people - in any field.

New EU quota delivers benefit

Australia's success in gaining approval to supply a new high-quality grainfed beef quota to the EU is a positive for the beef industry says Queensland Country Life but any benefits are likely to be long term rather than immediate.

Following a recent EU announcement, Australia now joins the US in the right to supply a new specialty market for high-quality grainfed chilled beef, totalling up to 20,000 tonnes annually under duty free access.

The paper says that until now, Australian exporters have only been able to supply beef to the EU within its 7000-tonne country-specific grassfed quota, which also comes with a 20 pc import tariff.

The new high-quality market brings new hope for Australian exporters at a time when the high Australian dollar and poor domestic prices are hurting the industry and Australian Meat Industry Council's Steve Martyn says the new access is likely to be a measured and niche-type business for Australia for some time.

$53 million shadow over AACo

Don't be surprised to see major changes in strategic direction taken by the Australian Agricultural Company in coming months says Queensland Country Life as the company battles to shake off its shock profit warning.

Last week the company provided an earnings guidance to the Australian Stock Exchange, forecasting a huge $53 million to $60 million loss for the year ending December 31.

AACo is blaming extreme weather, the stronger Australian dollar and low cattle prices for the downgrade. It came after a half-year forecast loss of $30 million, and an August prediction it would return a second-half profit if cattle prices remained steady.

The 2009 year will be the first full reporting year in which AACo absorbed the full impact of the 2008 drought across the Barkley/northwest Queensland region according to the ASX advice.

Lotfeeders still do it tough

Queensland went against an increase in numbers across the nation to post a small decline in lotfeeding activity for the December quarter says Rural Press as the grainfed beef industry continues to bump along the bottom of a two-year slump.

The December quarterly industry survey, released at the end of January, has suggested Queensland feedlots slipped by about 8000 head to 432,000 head on feed during the three months to December.

This occurred despite strong evidence of quite strong intake of cattle in many custom feedlots during the past quarter, on the strength of widespread dry weather in the lead up to Christmas.

This custom-feeding trend, however, was more than offset by the soaring Australian dollar, lacklustre export demand and grain price volatility due to uncertainty surrounding the sorghum crop, leading to a decline in Queensland feeding activity.

MLA UPDATE

Good falls for eastern Australia

5/02/2010

Heavy rains across Queensland continued this week, with over 150mm recorded across selected regions. Good falls were also recorded across parts of NSW, particularly north-western regions, with Tibooburra recording 70mm, while the majority of WA, Victoria and Tasmania remained dry. The wet weather is set to continue over the next week, as a low pressure system heads south, delivering much needed falls to rural southern Australia.

Korea wholesalers await Lunar Year sales

5/02/2010

The Korean wholesale market was quiet this week, with the majority of traders awaiting Lunar Year sales before increasing their activity. Lunar Year in Korea will be celebrated on 14 February 2010. Prices for imported beef products in Korea this week remained steady, to slightly higher.

During this January, Australian exporters shipped 5,923 tonnes swt of beef to Korea, with 31% comprising chilled beef. January's shipments were up 38% on the very low volumes for the same period last year, with chilled product up 54%.

Australian beef exporters reported on increasing interest from Korean buyers starting to plan post Lunar Year stock levels. However, improved seasonal conditions throughout Queensland are expected to constrain available cattle supplies and processor activity.

Tamworth weaner sales

5/02/2010

The Annual Landmark Classic Campdraft store cattle sale consisted of weaners, yearlings, pregnancy-tested-in-calf (PTIC) cows and heifers, along with a good line up of cows and calves. The cattle were largely drawn from local areas, and included almost 600 yearling heifers that were used in the Campdraft competition.

The majority of the cattle presented for the sale were in good store condition, after what has been a poor season until recently. The heifer yearlings used in the Campdraft were on the road with drovers for several months prior to the event, so were very well handled and showed good temperament. A large gallery of prospective buyers and onlookers were in attendance, with buyers coming from Central West NSW and north to Goondiwindi. However, the biggest percentage of cattle was purchased locally, or within 200 kilometre radius.

The market was strong with demand high for all categories. Weaner steers sold from $370 to $475/head, with estimated liveweight values of 195¢ to 227¢/kg. The small number of weaner heifers ranged from $270 to $460/head, with the estimated liveweight range of 156¢ to 186¢/kg.

Yearling steers were highly sought after, with lightweights making from $410 to $610/head - estimated at 145¢ to 200¢/kg lwt depending on breed and confirmation. Medium weight steers sold from $540 to $730/head , or 164¢ to 199¢/kg lwt.

The heifer yearlings also attracted strong demand from buyers looking to secure lines. This pushed some rates in excess of what has been realised at some recent prime cattle markets. The lightweight yearling heifers sold from $350 to $550/head, or 147¢ to 187¢/kg lwt. Medium weight heifers sold from $510 to $640/head, or from 136¢ to 166¢/kg lwt.

In the grown female section, the high quality PTIC cows and heifers were well received, with Angus cows topping at $960 and the heifers at $875/head. Cows and calves also sold well, with buyers looking for both carry on breeders and turnover cattle. They ranged between $730 and $930/unit for cows with young calves at foot and $675 and $950/unit for cows with bigger calves at foot.

Cattle and lamb market rallies peak

5/02/2010

After solid gains over January, cattle values appear to have stabilised for now, awaiting a lift in underlying demand for beef overseas.

This week, pent-up supply in NSW and Victoria following good feed over summer and last week's Public Holiday pressured markets. This was effectively offset by the impact of excellent rains in Queensland and parts of NSW, and a fall in the A$, causing most indicator prices to remain close to last week's rates.

Both the improved pasture and crop prospects and A$ fall, if sustained, are positives for the potential quality and price of cattle in coming months. However, a substantial market recovery still requires a lift in demand from either Japan or the US. Prices from both markets have improved since the low point late last year, but this mainly reflects the low supplies from Australia - exports to the US market in January were the lowest since January 1997.

Sheepmeat prices were also mixed this week, with a doubling in lamb yardings, led by numbers out of Victoria and SA, placing a cap on prices at record levels (for January). Demand remains robust from the local market, assisted by the Australia Day promotions, the Middle East and the US (as the trade gears up for the peak Easter demand).

Hide demand solid

5/02/2010

Green hide prices were stable again, with a few contributors adjusting rates upward.

The outlook for export markets is now more positive, with rising demand for hides, and tanners more willing to lift prices. Chinese buyers are cautiously active in the lead up to Chinese New Year trading.

US trade stagnant on light supplies despite A$ fall

5/02/2010

Supply of Australian product into the US remained light this week making trading difficult. The limited supply and the high A$ (despite this week's fall) meant overseas asking prices kept above the point at which most US buyers were prepared to bid and, as a result, trading was stagnant.

CIF prices for Australian 90CL averaged 144US¢/lb CIF, down 2US¢/lb on last week, whereas FAS prices in A$ terms remained slightly firmer due to the A$ fall, gaining 1.6A¢/kg to 329.3¢/kg FAS.

Meanwhile, US restaurant demand is expected to slowly improve in 2010, according to Steiner Consulting, although many challenges remain. Unemployment is forecast to stay at around 10% and will continue to negatively influence the disposable income and restaurant patronage.

Another influence will be competing meat prices, with particular attention presently on the ongoing impasse with US broiler exports to Russia. Industry commentators expect this block to be overcome before the end of the first quarter. However, if it is not resolved, it could have a negative impact on US grinding beef.

Japan export prices higher

5/02/2010

Japanese buyers showed good to strong interest in Australian beef this week, but beef supply remained tight, particularly after extensive rains in Queensland. Subsequently, export prices to Japan rose from last week in both the US$ and A$ terms across the board.

Ministry of Finance in Japan announced that Japan exported 566 tonnes swt of beef during 2009, down 3% from the previous year, but an increase of 109% compared with 2007. It is assumed that the majority of exports were high quality Wagyu, with the largest market being Vietnam, followed by Hong Kong and US.

Larger cattle supply and mixed prices

5/02/2010

Following a shorter week due to the Australia Day holiday last Tuesday, cattle numbers climbed 82% this week. Tuesday numbers were 20% up on a fortnight ago, with the week off contributing to the larger numbers. Recent rain also played a part in Queensland, as there was also no prime sale held at Roma on Thursday due to wet weather.

Plenty of numbers have begun to emerge out of NSW and Victoria, with many producers getting their cattle in finished or forward store condition. Wodonga had another large weekly total to follow up on a fortnight ago. South east SA has also been receiving some large yardings, although this is anticipated to ease off over the coming weeks. There have been comparatively small numbers at the SA Livestock Exchange in recent weeks.

Mixed price changes were registered across all cattle grades. Vealer steers maintained some strength, with more numbers out of Queensland lifting the national indicator 2¢, to settle at 168¢/kg. Yearling steers to slaughter were also dearer; however, feeder grades in the saleyards came off in price, averaging 173¢ and 170¢/kg, respectively. The Eastern States Young Cattle Indicator (EYCI) fell 3.75¢ on last week, to finish Thursday at 320¢/kg cwt. The EYCI remains above the same time last year.

Export cattle prices in the saleyards were cheaper for Japan ox and dearer for cows; with the national Japan ox indicator back 8¢, to 163¢/kg. The increased supply of heavy steers was met with weaker demand, despite the A$ easing in the past week. The US cow indicator lifted 1¢, to finish the week at 125¢/kg. There have been more well conditioned cows at most centres and the US$ has showed some respite over the past week.

Over the hooks prices were dearer in NSW, Queensland and Victoria, with all other states unchanged on last week. Paddock feeder prices were also dearer, with most quotes between 170¢ and 180¢ for domestic, long and medium feds, and 180¢ to 185¢/kg for long feds.

January cattle slaughter lower
Eastern States cattle slaughter was 14% below last January's weekly average and 5% below the five-year average for January. Slaughter numbers were lower during January across Queensland, NSW and Victoria, with only SA recording higher numbers in the Eastern States. Better seasonal conditions in the north and softer export demand combined as the main factors influencing this trend.

January slaughter in Queensland is usually dictated by the re-opening times of abattoirs, which hinges on seasonal conditions. Queensland numbers were down 17% on last year, but 3% more than the five-year average, due to very low kill numbers in January 2008.

NSW slaughter figures were 6% below the five-year average and 13% below last year. In Victoria, cattle slaughter was 15% below the five-year average and 17% lower than last year. SA was the exception, with numbers on par with the five-year average and above last year.

Meat prices move higher in 2009

5/02/2010

Retail meat prices moved higher in 2009, reflecting the over increase in food prices. While the overall inflation rate in 2009 for Australia was 2.1%, the food category increased at 1.9%, contributed to by higher prices for takeaway and fast food (3.8%) and restaurant meals (3.2%).

For both lamb and beef, prices increased during the first two quarters of 2009, then declined. During the final quarter of 2009, beef prices increased only 0.5% year-on-year, with lamb prices averaging 4.7% higher.

Reflecting the record run of saleyard lamb prices throughout 2009, with prices averaging 13-21% higher than the previous year, retail lamb prices averaged 8.8% higher in 2009, at A$13.90kg. The combination of robust export demand, lower A$ and relatively tight supplies throughout the first half of 2009 put significant pressure on margins and pushed prices higher, while a seasonal surge in supplies from spring and higher A$ eased that pressure and lowered prices during the second half of the year.

Retail beef prices during 2009 averaged 2.2% higher year-on-year, at A$16.14kg, as demand remained positive throughout the year. The volume of beef available for the domestic market also increased during 2009, particularly in the second half as a rebound in demand, tough conditions in key exports markets and the high A$ made the Australian market more attractive.

For the competing proteins, retail pork prices in 2009 averaged 8% higher, at A$13.63kg, while retail chicken prices declined 0.4%, to A$4.08kg.

Slow start to 2010 for beef exports

4/02/2010

The New Year has seen little change to the difficult conditions being faced by Australian beef exporters throughout 2009, as the high A$, sluggish export demand and returns continued to constrain shipments. Australian beef and veal exports for January were back 11% year-on-year, to 44,709 tonnes swt - with large year-on-year declines to Australia's two largest markets, Japan and the US.

January is traditionally the lowest month for Australia's beef and veal exports, given the disruption to processing and transport during the Christmas/New Year period. Adding to the 11% year-on-year decline for 2010 shipments was higher than average exports in 2009, assisted by an A$ which averaged 68US¢, compared with 91US¢ in January 2010.

Exports to Japan for January declined 18% year-on-year, to 17,896 tonnes swt, as economic conditions in the market remained sluggish in the wake of 2009's recession, with deflation becoming an increasing concern. Similar to Japan, the high A$ and weak consumer demand contributed to exports to the US in January declining 37% year-on-year, to 9,950 tonnes swt - the lowest monthly total since January 1997.

Under the spectre of increased competition from the US in 2010, Australian shipments to Korea during January increased 38% year-on-year, to 5,923 tonnes swt. However, the year-on-year rise was accentuated by a very low January 2009 (4,282 tonnes swt), as a surge in US stocks and fallout from the global economic crisis saw buyer demand contract.

After a record 2009, taking 51,693 tonnes swt, Australian beef and veal exports to Indonesia commenced 2010 on a positive note, exceeding 3,000 tonnes swt - more than double the January average for the past five-years. Reflecting the increased shipments in 2009, exports in January also increased year-on-year, to Taiwan, China and the Philippines.

January was also a comparatively strong month for exports to smaller markets for Australian beef, including to the Middle East (1,130 tonnes swt), The Commonwealth of Independent States (479 tonne swt) and Canada (598 tonnes swt).

Beef production back in 2009

4/02/2010

Australia's production of beef and veal declined for the past calendar year, as the year-on-year contraction in adult cattle turnoff in both autumn and spring, largely influenced by seasonal conditions and previously poor breeding years, reduced total adult slaughter for the year. Beef and veal production for 2009 totalled 2.13 million tonnes cwt - back 1.5% on the previous year, while adult cattle slaughter contracted 2.6%, to 7.75 million head (Australian Bureau of Statistics).

Adult female cattle slaughter for 2009 declined 1.4% year-on-year, to 3.8 million head, despite a 9% year-on-year increase nationally during the first quarter of the year. The higher female cattle slaughter between January and March was largely due to a surge in turnoff in Victoria, especially of dairy cattle. However, female turnoff contracted significantly in spring, on the back of better seasonal conditions and lower overall herd numbers in southern Australia, with numbers in Victoria back 25% year-on-year.

Reflecting the overall lower available supply of male cattle throughout key beef producing regions in 2009, largely due drought, flooding and previously poor breeding season, adult male cattle slaughter declined 3.7% year-on-year, to 3.94 million head - the second lowest annual total for the past decade. Queensland male slaughter declined 2.3% for the past year, to 2.13 million head - making up 54% of the national total.

Reflecting the year-on-year fall in national calf turnoff between April and November, total calf slaughter for 2009 declined 4%, to 781,000 head, with falls in NSW and Victoria offsetting increases across the remaining states.

However, the decline in annual slaughter of adult cattle was partially offset by a rise in average weights, up 0.8% year-on-year, to 270.4kg/head, with averaged weights in Queensland the heaviest, increasing 1% to a record 293kg/head.

Sluggish demand continues in offal markets

4/02/2010

The average price of almost all offals in January improved from the previous month, as lower supplies - due to Australian processor closures - and the momentarily stable A$ offered some reprieve from an otherwise tough market.

However, at 91US¢ in January, the A$ still averaged 35% higher than a year earlier and continued to impact FOB returns on edible offal, particularly when compared over a twelve month period (Infoscan).

January prices for beef lips ($1.32/kg), headmeat ($2.38/kg), hearts ($1.33/kg) and kidneys ($0.86/kg), averaged 16%, 13% 9% and 7%, respectively, less than a year ago. Tripe pieces averaged 7% lower in January at $2.16/kg, although some improvement in values is expected with the lunar New Year looming. Liver prices resisted the cheaper trend, rising 22% to average $1.17/kg, underpinned by improved sales to Russia (MLA's Monthly Co-products Monitor).

Japanese and Korean offal markets remain sluggish, with Swiss-cut tongues ($10.28/kg), thick and thin-skirts ($3.60 and $3.65/kg) and rumen pillars ($3.85 500-700gms) all between 14-47% cheaper than a year earlier. Any improvement in tail prices - which averaged $4.03/kg in January - is reportedly due to a lift in demand from the Caribbean and North America, rather than any change in Korean buying.

Average halal offal prices were mixed, with concerns about an imminent oversupply due to an increased number of approved processors in Australia and elsewhere countered by solid demand. Halal hearts ($1.54/kg), kidneys ($0.97/kg) and tail ($4.06/kg) were all cheaper than a year earlier, while livers ($1.13/kg) and tripe pieces ($2.35/kg) rose 17% and 4%, respectively.

Sheep offal prices in most cases remained well above a year earlier. Sheep kidneys ($2.53/kg), livers ($1.93/kg), lamb runners ($4.65/kg) and tripe ($3.47/kg), averaged 46%, 65%, 16% and 3% higher year-on-year, respectively, in January, as strong demand for sheep offal out of the Middle East continues, spurred along by substitution for increasingly scarce mutton.

Latest Black Box Culinary Challenge in the Philippines

4/02/2010

The MLA Black Box Culinary Challenge, developed in 1996, is a competition designed to promote the quality and versatility of Australian red meat to the international foodservice sector. The most recent competition was held in the Philippines on 14 January, attracting 11 teams to determine the Philippine Champion.

The judges determined the team from Makati Shangri-La to be the winner, with Lolo Dad's Café, a past champion, coming in as first runner-up.

Australian beef and lamb was used as the core ingredient in a mystery "Black Box". The teams used the ‘Black Box' to create a four-course meal .The menu was designed in an hour and was followed by a gala dinner. MLA uses this competition to promote the use of less widely used cuts in a market - this year, D-Rump beef and oyster blade lamb was used in the Philippines, traditionally a lower value export destination.

The competition has support from the World Association of Chef's Societies, and sponsorship in this case from Werdenberg International. MLA's Black Box Challenge continues to promote the high quality of Australian red meat around the world.

Hot weather affecting butcher sales

4/02/2010

The recent hot weather was the number one reason for Australian consumers' choice of meat cuts in January, according to the results from MLA's latest butcher survey carried out by Millward Brown.

Beef cuts such as striploin, New York steak, porterhouse and T-bone led the way, with 25% of butchers surveyed indicating an increase in their popularity. Other beef steaks, including rump, cube roll and scotch fillet, also became more popular over January. Popular lamb cuts included, barbeque favourites, chops and cutlets, while sausages and other barbeque cuts followed a similar path.

The heat also caused a decrease in some cuts according to surveyed butchers, with 20% indicating diced and casserole cuts of beef as less popular. Blade, chuck steak and roast beef were also noted by 11% of butchers surveyed as being less popular during January, while the holiday and barbeque season was also recognised as having an impact on cut choices.

Beef exports to Japan down 18% in January

4/02/2010

Australia exported 17,896 tonnes swt of beef to Japan in January, down 18% from 12 months ago (Department of Agriculture, Fisheries & Forestry). The fall was due to a combination of various factors - the higher A$, Japan's struggling economy, and limited supply of products - making the beef trading environment particularly tough for both Australian exporters and Japanese buyers.

Additionally, some meat packers in Australia acknowledged subdued demand from overseas markets, and delayed re-opening their operations after the year-end closures, further contributing to the fall in shipments.

As a result, grassfed exports to Japan in January were down 25% year-on-year to 8,870 tonnes, while grainfed shipments also reduced 10% to 9,026 tonnes. Both chilled and frozen volumes declined 18% from a year ago to 8,990 tonnes and 8,906 tonnes, respectively.

The A$ during January was 35% stronger against the US$ compared with the same time last year.

Argentinean inflation rises driven by beef price hikes

4/02/2010

The Argentinean consumer price index has risen strongly over the last two months, driven by a 7% rise in food price items, including beef as supply slumps.

According to local trade, butchers and supermarkets have faced a 45% increase in wholesale beef prices, and passed a 20% price increase to local consumers. Demand for beef has also reportedly decreased, and interest in chicken and other meats has improved (La Nación).

According to analysts, the sharp decline in cattle supply has driven the price increases, which comes as a result of severe drought in 2008-09, inadequate government policies, female cattle liquidation, and the ease in beef export restrictions in 2009.

As a result of the price hikes, the Secretary for Domestic Trade has announced a tightening in export certificate issuing until beef supplies increase in the local market.

Local analysts forecast a further large reduction in supply over the next few months, as feeder cattle are scarce and expensive, reducing feedlots reposition rates (which currently account for around 35% of slaughter given government subsidies to lotfeeders).

The industry forecasts that the price increases will continue over the next two to three years, as demand remains strong, supply low, and the government tightens exports (Infocampo).

US cattle herd falls to 93.7 million

3/02/2010

The US cattle herd continued its contraction with the 1 January 2010 figure falling 1% below year ago levels to 93.7 million head - the smallest cattle inventory since 1959 (Daily Livestock Report)

US cattle producers reduced their herds in response to mounting losses - low beef prices precipitated by weak consumer demand, and escalating costs of production. Despite the smaller herd, US-based Cattle-Fax believes demand must stabilise in order for prices to improve significantly.

The US cow herd, at 40.5 million, is now at its lowest level since 1949 (39.8 million head).

The dairy herd reduction scheme removed a reported 252,000 head during 2009 and contributed to the smaller cow herd. According to the USDA, US beef cows numbered 31.4 million, down 1% year-on-year, while dairy cows tallied 9.1 million head, registering a 3% fall from January 1 2009.

US beef producers have yet to show any appetite to expand their herds, according to the Daily Livestock Report, with the 5.4 million heifers retained for beef herd replacement in 2009 falling 1.7% compared to a year ago. However, the number of heifers retained for dairy cow replacement caught many analysts by surprise, rising 2.4% to 4.5 million head.

Kiwi dollar to impact farmers

3/02/2010

Returns to New Zealand's (NZ) beef and sheep farmers will reportedly be negatively impacted in 2009-10 by factors outside of their control, according to Meat & Wool New Zealand's Mid-Season Update 2009-10.

The report highlights the impact the NZ$ has had on farm-gate beef and lamb prices. In January, the NZ$ averaged 32% and 18% higher, respectively, year-on-year against the US$ and UK£ (Reserve Bank of New Zealand) - and it is in these two currencies which the largest proportion of NZ beef and sheepmeat is sold.

Hence, despite the fact that in market prices are expected to remain firm in 2010 (in some cases even improving among dwindling global lamb supplies), farm-gate prices are tipped to fall an average 18% for lambs, and between 20-22% for adult cattle over the 2009-10 season.

NZ lamb export slaughter is forecast to rise 4% in 2009-10 to 23.5 million head, due to a vastly improved lamb crop in 2009 amid some restocking. Cattle export slaughter is tipped to fall 6% to 2.19 million head, due to a combination of; restocking after a number of drought years, as well as a lower dairy cow cull - with dairy commodity prices reportedly firming at attractive levels.

A new case of foot-and-mouth disease in Korea

2/02/2010

A sixth case of foot-and-mouth disease was reported on 30 January in Korea. The latest outbreak was found approximately four kilometres from the farm where the first case was confirmed 10 days earlier (Korea Times).

According to Korean ministry officials, all 81 dairy cows on the property and other cloven hoofed animals within a 500 meter radius of the farm were slaughtered and buried to prevent further contamination.

Since the first outbreak was reported (on 7 January), the government has now culled and slaughtered more than 3,500 animals, including cows, pigs, goats and deer at 39 different properties (Korea Times).

Japan beef imports up 5% in 2009

2/02/2010

Japan imported 481,135 tonnes swt of beef during 2009, up 5% from the previous year (Ministry of Finance, Japan). The increase was largely due to the rise in imports from the US, while imports from Australia, Mexico and Canada also increased compared with 2008.

Beef imports from the US totalled 69,193 tonnes in 2009, 15,000 tonnes more than 2008 (up 28% year-on-year), but still only 26% of the pre-BSE period in 2003.

Imports from Australia rose 2% to 363,908 tonnes, assisted by firm demand for chilled beef (up 6% from 2008). Mexican and Canadian beef imports also lifted to 9,629 tonnes (up 3%) and 8,527 tonnes (up 81%), respectively, but volumes from New Zealand fell 4% to 29,556 tonnes.

The total value of imported beef into Japan in 2009 declined 16% year-on-year to 186.2 billion yen (A$2.53 billion), reflecting the depreciation of the US$ against Japanese yen, as well as the stronger interest in low value cuts due to the markets' subdued economy.

Lack of good livestock preparation by producers before transport is not only creating animal welfare issues says Queensland Country Life, it is also costing the nation's livestock carrier industry more than $50 million a year in excessive washout costs.

These are among key findings of a new report the Australian Livestock Transporters Association (ALTA) just issued after a late-2009 survey of its members about preparation for transport and effluent spill from loaded stock crates.

The issue initially gained prominence in the ALTA/MLA 2007 membership survey, in which professional transporters suggested poor preparation is the number one animal welfare issue facing the industry.

The paper says that an analysis of the survey results suggests that the total cost of washouts for the stock carrier industry is about $50.2 million annually - consuming six billion litres of water.

Central Queensland beef cattle producers have posted a $4000 reward following the theft of 42 of their prime Brahman/Droughtmaster crossbred heifers from a Morinish property says Rural Press.

The report says that producers Paul and Margaret Pierce are offering the reward for information leading to the recovery, or location, of their cattle, which are currently valued at more than $40,000.

The cattle went missing from the couple's 3000-hectare property Craignaught, off Glenroy Road, between April 2008 and September 2009 - and they are all branded on the offside rump with the Pierce's PPA brand, and also have NLIS tags.

Pierce says the cattle were all from the same paddocks and were among the pick of his heifers and as they only sell cattle straight to meatworks, anyone seeing the brand should contact police.

 
Forget good seasons, new markets, growing demand or food security issues - it won't mean a thing says Queensland Country Life unless the decline in real returns to cattle producers is quickly turned around.

That message will underpin a new campaign by Inverell, NSW, processor and long-time industry agitator John "JR" McDonald, who says he is making his mission in 2010 to "educate" farmers about what they are really being paid.

The report in the paper says that McDonald claims those returns are currently more than 20 pc less in real terms than what the nation's beef producers were receiving 20 years ago - and says this is unsustainable.

McDonald and his family will kick off that campaign with a beef industry forum in Armidale later this month, calling for transparency in the fees and charges being collected by government and industry bodies, and benchmarks to help address the decline and get our producers on a more equal footing with global competitors.

An exceptional 90-day weight gain performance of 1.7 - 1.8 kilograms per head, per day, for steers and heifers in a paddock feedlot system has caught the attention of CQ BEEF Moura group members says Queensland Country Life.

Department of Employment, Economic Development and Innovation senior beef extension officer Ken Murphy organised the inspection as part of the FutureBeef initiative, which supports CQ BEEF.

The papers says that the FutureBeef program provides both project and training opportunities for beef producers to improve productivity, profitability and sustainability through improved knowledge, research and technology.

About 40 FutureBeef extension staff currently work with cattle producers around Queensland to address improved nutrition, grazing and land management, breeding and reproduction and business management, which took them to the Banana district cattle and cropping aggregation Can-Berra for the inspection.

Northern NSW graziers with at least two months of lush feed in their paddocks must decide between taking agistment stock or replenishing low cattle and sheep numbers according to a report in The Land.

Agistment was almost impossible to find before Christmas but heavy rain has rejuvenated pastures across a large patch of northwest NSW from Bourke to Brewarrina, Walgett, Coonamble and Nyngan.

The paper says there is now also agistment available further north in other NSW locations, such as Gunnedah, and across the border in southern Queensland at St George and Cunnamulla.

The Land says that there will be a feast of the latest information from the beef feedlot industry at the Cargill talks at this year's NSW Beef Spectacular, which will be held from March 4 to 6.

Cargill's beef livestock general manager Grant Garey, Wagga Wagga, says the company has invited Queensland-based Dr Kevin Sutherland, a consulting specialist on feedlot animal health, and his first topic will cover feeder steer preparation.

Garey has told the paper the involvement of Cargill in the Spectacular is to make sure that the company is providing all the latest information to its producers to maximise the production of their cattle in the feedlot.

"Sutherland is one of Australia's leading feedlot veterinarians, and works with feedlots across Australia. In his second presentation Sutherland will cover cattle handling and acclimatisation to the feedlot," he says.

A new marketing school will help livestock producers gain a stronger understanding of which of their animals are overpriced and which are underpriced according to a report in the Stock and Land.

The paper says that the KLR marketing school will be staged in Victoria for the first time early next month, with trainer Grahame Rees saying while graziers are good at increasing production and producing quality stock, they need to know whether this effort always results in better prices.

Both livestock breeders and traders will be able to learn the principles already applied by more than 1400 graziers across Australia - those selling livestock that may not even be fat in order to make a profit, rather than simply because they run out of grass.

29/01/2010

Elders Ltd Leongatha conducted their 26th annual weaner and yearling store cattle sale last Friday. The yarding of around 1,700 head offered a mostly good quality offering of Angus, Hereford and Red Angus weaner and yearling steers with some crossbred steers and a small number of heifers also yarded. Most of the yarding was in forward store condition, and a large percentage of the young cattle had been weaned.

There was not a particularly large gallery of buyers in attendance, but those present were very competitive. Nearly all of the yarding was pre-weighed, and the sale was conducted by open auction. Having the weights displayed made little difference to demand, prices were strong for most of the sale. Buyer support came mostly from South Gippsland, aided by West Gippsland as well. There were two buyers operating for feeders who purchased around 16% of the offering.

The sale opened with 595 yearling and grown steers, with numerous pens of heavyweight steers. Competition for these came from bullock finishers from local districts, with one pen of well finished steers purchased for slaughter. There was a mixture of breeds, including crossbreds and two pens of Friesian steers. Heavyweight steers made between 145¢ and 160¢ or $572 to $858, with lightweight prices between 155¢ and 171¢/kg lwt or $445 to $654/head. Crossbred steers averaged between 122¢ and 156¢/kg lwt.

Demand for weaner steers varied on weight and breeding quality. Despite a preference for Angus steers, all breeds sold well with prices averaging 174¢/kg lwt. Medium to heavyweight steers made between $450 and $678 or 156¢ to 189¢, and the lightweights made up to 195¢/kg lwt, or $380 to $570/head.

29/01/2010

The Korean Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) has reported that no additional foot-and-mouth disease cases were found since 19 January and there have been no reports on suspected cases since 21 January this year.

According to a survey conducted among 553 meat traders in Seoul and throughout Gyeonggi-do (province that reported the first FMD case), 65.1% of respondents said that the beef and pork trade has decreased since the outbreak (Yonhap News). A total of 24.2% respondents said sales remained the same, while 3.1% said it has increased, and 7.6% did not know.

In contrast, sales and prices at retail for domestic beef remain strong ahead of Lunar Year (Asia Economy). Reportedly, Korean consumers are aware that FMD cannot be transmitted to humans, and consumers have confidence in beef products due to the traceability system.

29/01/2010

Imported beef prices into the US were slightly softer this week due mainly to reduced domestic demand and, to a lesser extent, supply levels.

CIF prices for Australian 90CL averaged 146US¢/lb CIF, down 2US¢ on last week, while FAS prices in A$ terms remained steady, losing only 0.6A¢ to 327.7¢/kg FAS, as the A$ fell.

The market appears to be ‘on hold', as lower bids from US end users are being seen as an indicator that grinding beef values have reached a seasonal peak.

According to Steiner Consulting, US grinding beef demand generally softens in late January and early February which can be partly attributed to strong retail orders pulling back.  Meanwhile, the US beef complex remains uncertain. With the cold weather experienced in December and early January, it is likely that more cattle than usual will be marketed in coming months.