Queensland drives January cattle slaughter

03 February 2012

Average eastern states weekly cattle slaughter during January as reported by MLA’s National Livestock Reporting Service (NLRS) increased 8% year-on-year, with approximately 97,000 cattle processed on a weekly basis.

The comparatively high prices in January and plentiful supplies of prime cattle encouraged turnoff in Queensland. However, average weekly eastern states slaughter was 4% below the five-year monthly average, as numbers remained constrained in NSW and Victoria.

Queensland cattle slaughter was significantly higher compared with the same period last year – as the floods curtailed cattle supply in early 2011. This year, weather patterns across Queensland were favourable to cattle movements, resulting in slaughter lifting 50% year-on-year, and finishing 16% above the five-year average.

Additionally, wet weather in December delayed some slaughter cattle, with these consignments coming forward early in the New Year.

Circumstances were different in NSW, with slaughter declining 7% on last year and 13% below the five-year January average – with herd rebuilding still a priority for NSW beef producers.

Processors experienced a slow start to the year – as the tough export trading conditions contributed to many operating at a reduced capacity. The mid-week Australia day holiday influenced throughput, with some processors opting to take a long weekend.

Similarly in Victoria, average weekly slaughter fell 4% on last year and was 17% below the five-year monthly average. It was a strong month for SA cattle throughput, as slaughter improved 5% year-on-year, while climbing 17% above the five-year January average. It must also be noted that during January 2011, wet conditions prevailed in southern states, resulting in historically tighter slaughter levels.

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