July 13, 2011

Low buying prices cut down Australia's cattle sales

Australian producers are not selling cattle due to poor prices and the company has been forced to reduce its kill days next week, said Teys Brothers chief executive officer Brad Teys.

Australia's second biggest meat processor, Teys Brothers, says it has been about 30 years since it has seen the supply of cattle so tight.

The company operates beef processing facilities at Beenleigh, south of Brisbane, as well as at Biloela, Rockhampton and Naracoorte in central Queensland.

"At Biloela next week, [they] don't have one day's kill yet - haven't got enough for one day," Teys said. "At [Rockhampton], we're expecting to get about three days and at Beenleigh probably three, and Naracoorte's shut down."

Meanwhile, cattle sales have been cancelled in western Queensland due to a drop in overseas demand for boxed beef.

The Longreach and Blackall saleyards will not be operating this week. Livestock agent Bill Seeney says graziers are afraid they will not get value for money.

"Fat cows and bulls that are ready to go have to go-you can't go fattening cattle twice-there's no profit in that," he said. "People are holding on to any cattle they can value-add to or hopefully the market might get a little better down the track."