It’s been a time of high prices and investment from the likes of wealthy, Gina Rinehart, in our cattle industry.
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But, what does the future hold?
Consolidated Pastoral Company (CPC) is Australia’s largest privately owned beef producer with a carrying capacity of 368,000 head across 5.6 million hectares of property in Australia.
Queensland Country Life’s Martin Bunyard sat down with CPC’s Chief Executive Troy Setter to talk about the road ahead.
What are the major factors most likely to impact your cattle business in 2017?
“The Australian cattle industry has been challenged by several years of drought. The 2016-2017 wet season has started well, however the industry does need a good wet season to see the Australian herd recover.
“The Australian industry must work to maintain the quality and clean and green image of its products as more beef and cattle exporting countries compete in the same markets as Australia.
“CPC continues to focus on delivering our strategy to move closer to our end customer and in recent years we have continued to invest significantly in our operations to remain efficient and productive, leaving us well placed to continue to grow.”
What will be your cattle business's main focus during 2017?
“CPC continues to invest in our team and operations to increase productivity. We’re particularly focused on growing our herd to meet increasing demand by investing in our genetics program and developing our property assets, particularly in water infrastructure to increased grazing efficiency.”
Do you have an optimistic or pessimistic outlook of Queensland’s cattle industry in 2017?
“We’re positive on the outlook for the Queensland and Australian cattle industry for 2017. The Australian market continues to be strong with good beef and cattle prices with continued demand for Australian beef across a variety of markets, especially in Asian markets. While there are some challenges for the industry globally, Australia is well placed to capture a meaningful proportion of the opportunity in Asia.”
What are your thoughts on current cattle prices? And are they sustainable at high levels recorded in 2016?
“High cattle prices are a real positive for Northern Australian producers and the Australian beef and cattle industry as a whole. The higher cattle prices are allowing many producers to reinvest in their businesses. Higher cattle prices are challenging some meat processors and live exporters in some markets. We are seeing some falls in volume to export markets that have strong price competition.
The Australian herd is down in size and this tighter supply and the continued strong demand will likely see prices remain strong. The continued high cattle prices allow CPC to further invest in our business to increase productivity.
What seasonal conditions are currently prevailing across your cattle properties?
“Conditions across our northern operations are currently better than those experienced at the same time in prior years. We’ve seen a good start to the wet season and we hope that continued rain will help producers recover after a few dry wet seasons. While drought management is a focus for all, more rain in Queensland would always be welcome.”
