December 17, 2009

Australia's October beef production affected by tight supply

Tight cattle supply and reduced shifts from processors in Queensland have hurt adult cattle slaughter, leading to lower Australian beef and veal production during October.

Total beef production for October was down 14% year-on-year, with male and female adult cattle slaughter contracting 11% and 21%, respectively, according to the Australian Bureau of Statistics.

October and November are traditionally high points for beef and veal production, as producers across Australia slaughter cattle in preparation for summer. From January to October, total Australian beef production declined 2% on-year to 1.8 million tonnes cwt.

In Queensland, cattle numbers became increasingly tight throughout October, with many producers reducing slaughter despite seasonal conditions worsening through the month. Male slaughter cattle in Queensland for October dropped 15% on-year to 204,000 head, while female numbers contracted 13% to 105,000 head.

Lower prices and difficult export trading conditions due to the strong Australian dollar also added to the problems.

With the general shortage of cattle throughout Queensland and processors maintaining reduced shifts during the final two months of 2009, total Queensland beef production is expected to be down 5-8% on-year, after being up by 2% as recent as August.