April 21, 2008

Australia's cattle on feed numbers improve thanks to domestic demand
 

A 15-percent jump in demand from the domestic market has enabled cattle on feed in the March quarter to rise 3 percent compared to the previous quarter, according to a Australian Lot Feeders Association (ALFA) and Meat and Livestock Australia (MLA) survey.

Cattle on feed reached 604,026 head, with domestic demand accounting for 184,364 head or almost a third of the total herd while export demand stagnated.

The quarterly increase was also due to a need in Western Australia to finish cattle in feedlots due to normal dry summer conditions, with numbers more than doubling from the previous survey, to 57,278 head.

New South Wales also recorded an increase for the quarter, up 5 percent on the December quarter, to 206,900 head.

However, compared on an on-year basis, the cattle numbers were still down significantly. In Western Australia, it was down 17 percent while in New South Wales it is down 30 percent.

Reduced sorghum and barley prices in the quarter helped offset the increase in feeder cattle prices and the Australian dollar.

In the export markets, numbers were down marginally from the previous quarter but 28 percent below last year's levels.

Competition from the US in major markets like Japan and South Korea and the higher prices of Australian beef continue to drag at sales.

Australian grainfed beef exports to Japan fell 22 percent (33,687 tonnes) on-year while shipments to South Korea fell 27 percent (9,295 tonnes) .

Grainfed cattle turn-off for the March quarter totalled 446,148 head, down 32 percent year-on-year, while total capacity utilisation remained unchanged at 51 percent.