August 29, 2012

Australia's cattle on feed rises 5% in June 2012 from the March quarter, while remaining stable on the corresponding period in 2011, at 788,625 head.

At the conclusion of the 2011-2012 fiscal year, total numbers on feed were slightly lower (1%) than the same time last year, but improved 2% on the five-year average, at 3.05 million head.

In Queensland (434,862 head) and New South Wales (243,261 head), cattle on feed during the June quarter rose by 5% and 2%, respectively, compared with the March quarter, while South Australia (24,477 head) recorded a 4% improvement over the same period. Furthermore, both Western Australia (34,948 head) and Victoria (51,077 head) registered an increase compared with the previous quarter.

While the June quarter findings highlight a rebound in cattle placed on feed, the impact of the US drought on the Australian industry remains to be seen. With feed grain prices soaring into the September quarter and a sluggish global export market showing little signs of improvement, the impact of these external variables will be evident in the September and December quarter survey results.

The global market remained challenging for Australian exporters during the June quarter, particularly for higher valued chilled product. Australian grain-fed beef exports to Japan (31,540 tonnes) fell 17% on-year during the June quarter, while shipments to Korea finished 30% lower over the same period, to 6,148 tonnes.

Total cattle turn-off (644,276 head) during the second quarter of the year was 9% higher than the March quarter, yet declined 2% on-year. However, Queensland (359,425 head) remained steady on the previous quarter and down 6% on the previous June quarter.

Cattle turn-off during 2011-2012 fell 3% on-year, to 2.46 million head, however, remained 2% higher than the five-year average. While total adult slaughter over the past few years has declined, underpinned by much lower female slaughter levels, the proportion of cattle finished on grain has improved.