March 2, 2010

Rain exacerbates Australian abattoirs problems

With more rain storms expected in Australia over coming days, livestock turnoff remains low across all species, causing major problems for abattoirs and exporters.

According to Meat and Livestock Australia (MLA), 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, 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. 
 

Cattle 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 Australian dollar remains around US$0.90, or moves higher.