While the moisture was not drought breaking, all restocker markets have responded positively with restockers pushing lighter replacement types higher by up to 30c/kg liveweight. This is not confined to Queensland markets, with major centres in the south also experiencing gains across the board. If we are subject to a ‘rain event’ over the coming months, the indications are for significant price improvements across the board.
Why? The national herd currently sits close to 27 million cattle across the country. This data is updated each January, and I would be surprised if we do not see that number decrease somewhat. The dry winter conditions have driven female processing to levels not seen since 2013. June to August the national female slaughter was up 23 per cent on 2017 figures. Queensland was up 24pc year on year with NSW up 24pc, Victoria up 31pc and in WA up 37pc.
Heavy finished livestock saw no real improvement in prices. In fact, some processors softened prices up to 10c/kg cwt. One major saleyard had finished cow prices back up to 20c/kg live late last week. A couple of processors were absent and the most reasonable explanation would be that they had secured their numbers for the year and had no reason to participate in the physical market. One feels we need to get more clarity around closing dates during this period as the spot market suffers the biggest losses due to this uncertainty. Processors will not leave themselves at the mercy of the spot market at this time of year and look to secure forward bookings as a priority.
The fundamentals for the red meat Industry are strong. Demand from domestic consumers is growing and this will continue with aggressive retail pricing for market share. Latest indications are that for global consumption growth for red meats products are expected to increase between 1pc and 3pc. Beef consumption growth is expected to rise 1pc and sheep meat consumption is expected to increase 2-3pc this coming year.
Meat Standards Australia (MSA) recently celebrated a 20-year anniversary reunion at the Regatta Hotel, Brisbane. Past and current staff members along with a number of key industry people gathered to celebrate the grading system that was developed to improve the supply of consistent high-quality meat to the beef consumer. As you would imagine there was plenty of lively discussions on how the MSA program progressed and gained momentum over the past 20 years and it is testament to the industry to be able to deliver a consistent product for consumers.
MSA program manager Sarah Strachan spoke of the current day program, which now incorporates sheep meat as well as beef. It is important to note that MSA underpins many of the branded beef programs that we all know and support. It was then interesting to hear from industry stalwarts Rod Polkinghorne, Jason Strong and Cameron Dart on the development of the MSA program and just how much work was done by industry to get the program to where it is today.
All speakers agreed that research and development will continue to grow and enhance the MSA program but in the early days, it was the dedication of the graders, who often worked very long and odd hours in abattoirs across the country, which really set the program up for success. Past MSA staff members are now employed in almost every aspect of the red meat industry and MSA has certainly been the career launch pad of many current successful key industry players.
It was clear to see the friendships and industry connections are still very much alive and well. The festivities went well into the night with some catching up the next day for more meaty discussions.
To my few cherished readers may I take the opportunity to trust you all have a safe and happy festive season with your family and friends. It is a good time of the year to appreciate what we have in the lucky country that we all love.
