November 16, 2012

Australia's September cattle on feed numbers drop 9%

During the September quarter, the number of Australian cattle on feed declined 9% from the June quarter, but remained relatively steady on the corresponding period last year, at 717,145 head.

Feed grain prices across Australia surged throughout the September quarter, influenced by soaring corn prices in the US, although feeder cattle prices remained relatively steady in comparison to last year.

Cattle on feed numbers in Queensland rebounded 6% (27,648 head) on the June quarter and 13% (54,552 head) on-year, to 462,510 head, while numbers on feed in Western Australia improved on the September quarter last year, to 12,620 head. All other states recorded a decline in numbers on feed, with New South Wales (196,073 head), Victoria (36,906 head) and Southern Australia (9,036 head) registering a 16%, 19% and 61% reduction on-year, respectively.

While higher input prices placed pressure during the September, the sluggish global environment and high Australia dollar continued to challenge exporters, particular for higher valued product. Grain fed exports to Japan fell 4% on-year during the September quarter, to 33,801 tonnes swt, while shipments to Korea finished the quarter 23% below year ago levels, at 7,776 tonnes swt.

Cattle turn-off in the third quarter fell 10% on-year, to 584,364 head, with the majority of states registering a decline in turn-off. Total feedlot utilisation also fell during the September quarter at 56%.