July 20, 2015

Australian cattle to sink to lowest numbers in 2016

Cattle numbers in Australia may plunge to its lowest in two decades, at 26.1 million heads by 2016, according to third-quarter projections by Meat and Livestock Australia (MLA).

Although the fall will not result in a crippling crunch of animals for the processing industry, challenges are expected to persist in the form of potential shortages, coupled with strong demand and high prices, said Ben Thomas, a MLA manager.

Especially worrying is that, in 2017, the Australian processing sector will have only 6.9 million cattle at hand, a drastic 23% drop from the nine million to be slaughtered this year. The figure is also 700,000 head behind Australia's long-term average annual slaughter which is 7.7 million head. 

Meanwhile, Australia may likely deliver 1.32 million tonnes of beef this year, breaking 2014's record by 2%. Beef and veal exports had, in the January - June period of 2015, rose 11% year-on-year, to a volume of 646,685 tonnes.

The key export markets are the US, Japan and South Korea dominating a combined 63% of market share.

Another positive trend rests with carcass weights that, despite falling herd numbers, have risen by 1-1.5kg yearly over the long term.