April 13, 2010

Rain hit February beef production in Australia

Australian beef and veal production for February fell 8% on-year to 300,941 tonnes due to widespread rain throughout January and February, according to the Australian Bureau of Statistics.

The logistical difficulties from flooding had caused producers to withhold their cattle from markets, thereby reduced the available supply of cattle to processors.

February beef and veal production declined 16% on-year in Queensland (67,125 tonnes), 2% in NSW (39,184 tonnes) and 8% in Victoria (32,812 tonnes). In contrast, volumes increased 2% and 38% in WA (9,683 tonnes) and SA (9,491 tonnes) respectively.

With total adult cattle slaughter for the month back 9% on-year to 590,000 head. Female numbers contracted 11% largely due to the influence of the rain and increased demand for breeders from restockers. Adult male turnoff declined 7% on-year, with male slaughter levels in Queensland declined 17%. This was a combination of producers withholding cattle from sale to capitalise on the rapid turnaround in seasonal conditions and limitations on transporting cattle due to flooding.

After the first two months of 2010, Australia's total beef and veal production is back 8% on the previous year, at its lowest level since 2002, at just over 300,000 tonnes. The lower production has had an impact on exports, with shipments for the first quarter of 2010 back 14% to 188,368 tonnes.

Australian beef and veal production is expected to fall 4% this year to 2.045 million tonnes, with exports forecast to be back 6% to 875,000 tonnes, according to MLA's industry projections.