Trends and analysis
The week in review 09/05/13
EYCI drops below 300¢
- After a failed wet season in the north and with little prospect of an autumn break on the horizon, cattle throughput and slaughter this week continued to surge across the eastern states. Adding further pressure to markets is very few producers being in the position to restock and with feedlots fully booked for weeks in advance, feeder buyer interest also remains subdued.
- Consequently the Eastern Young Cattle Indicator (EYCI) fell below 300¢ this week for the first time since December 2009, finishing Thursday’s markets on 285.75¢/kg cwt. While the EYCI is currently at a three year low, when comparing to similar years where widespread dry conditions were experienced, the price trend is similar. The EYCI in the very dry 2007 averaged 317.61¢/kg cwt, with a low of 272.5¢/kg cwt, and similarly, in the dry 2009, the EYCI reached a low of 277.75¢/kg cwt, to average 317.04¢/kg cwt. While the EYCI reached a low point this week so far for 2013, the year-to-date average is 323.44¢/kg cwt, above that of both 2007 and 2009.
- While there were reports of cows sold for $20/head at Longreach last week, the quality and condition of those particular animals was exceptionally poor. In contrast, D2 cows at Wodonga this week averaged $389/head, with the same lines averaging $436/head in Wagga, and $426/head in Dalby. These prices are back from those received over the previous two years, however, are reflective of the large national herd and extent of the dry conditions.
- Sheep and lamb markets also felt the pinch this week, with throughput again very high. Nationally, the heavy lamb indicator finished on 387¢/kg cwt, back 6¢, while the mutton indicator finished the week on 155¢/kg cwt.
Inland Australia remains dry
It was another dry week across most of inland Australia, with WA and coastal Queensland receiving most of the rainfall. Several cold fronts crossed the WA coast, bringing solid falls of up to 100mm to the south-west regions. Tasmania also recorded up to 100mm of rain in western areas, while Victoria and parts of southern NSW experienced lighter falls of up to 10mm.
Red Meat 2000 - 2010: A turbulent decade, a vibrant industry
The recently released Red Meat 2000-2010: A turbulent decade, a vibrant industry report takes a look at the event filled decade the Australian red meat industry has faced. From droughts to the discovery of BSE in Japan (2001) and North America (2003), the global financial crisis in 2008 and the currently high A$, the report captures the peaks and troughs in the industry during the last ten years. It also explains the drivers behind these events.
ABARES Farm Survey
The beef, prime lamb and sheep data collected through ABARE's annual agricultural and grazing industries survey (partly funded by MLA) is available in an online database. Users are able to individually tailor combinations of information for all the annual red meat industry physical and financial data collected through the survey.
Australian beef industry
Australian sheep industry
Access the Farm Financial and Physical Database
Statistical databases from the US Department of Agriculture (USDA) and the Food and Agriculture Organization (FAO) also contain useful information on world production, exports, imports and consumption of agricultural products.
Phone: (02) 9463 9163
MLA makes no representations and to the extent permitted by law excludes all warranties in relation to the information contained in this website. MLA is not liable to you or to any third party for any losses, costs or expenses, including any direct, indirect, incidental, consequential, special or exemplary damages or lost profit, resulting from any use or misuse of the information contained in this website.