October 14, 2010

Australia's August beef and veal output slightly down

Australian beef and veal production fell 1% on-year in August to 183,015 tonnes cwt, as wet weather across the eastern states, most notably in Queensland and NSW, restricted the supply of cattle and sustained very strong restocker demand.

Given the better season, the quality and weight of cattle processed has increased significantly in recent months, partly offsetting the decline in slaughter.

Production in Queensland fell 6% to 95,212 tonnes cwt and 3% in NSW to 35,521 tonnes cwt, with slaughter numbers back. In contrast, processor output rose 7% in Victoria and 24% in SA due to an increase in both the number and average weight of cattle.

National beef and veal production for the first eight months of 2010 now stands at 1.4 million tonnes cwt - 1% behind the previous year. Adult cattle slaughter is back 4% over the same period, with the 3% lift in average carcass weights underlining the better season so far through the eastern states.

Queensland production for January to August is running 3% behind 2009, at 682,138 tonnes cwt, with some extremely wet weather providing problems for mustering and transport. Male adult cattle slaughter for Queensland is back 6% on-year, 1.3 million head.

Despite a surge in restocker activity linked to the better season, NSW beef and veal production for the first eight months of 2010 was up slightly on-year, at 315,258 tonnes cwt, with a 7% decline in adult slaughter offset by a 6% increase in average carcass weights and sharp rise in veal production. Victorian production was back 2% over the same period, with similar restocker buying and a general move towards rebuilding herds and limiting slaughter numbers.