Meat & Livestock Australia publishes a range of market intelligence updates each week relating to developments in domestic and export demand, red meat marketing initiatives and research and development programs. Below is a summary of recent MLA-generated articles and headlines with relevance to the beef and cattle sector. All items are authored by MLA staff, with no input from Beef Central.
National cattle supply slips 7pc in May
Total national monthly cattle supply at saleyards reported by MLA’s NLRS declined 7pc compared to April, with the recent rainfall slowing cattle numbers. Fewer (15pc) cattle were also offered during May, year-on-year, which aside from the rain, is likely to be attributed to larger cattle numbers turned off earlier, due to the dry summer and autumn.
Offerings in Queensland declined significantly this month, with consignments back 20pc compared to April. Roma store and Longreach were the main contributors to the decline, with Roma numbers back by around 4,000 head this week and Longreach only operating twice this month due to supply issues. Reports suggest producers are reassessing their stocking decisions in western regions, as winter herbage starts to establish, meaning some may decide to hold cattle through the cooler months in anticipation of the market improving in spring.
NSW however, reported an increase, up 6pc compared to April, with larger numbers of vealer and yearling cattle presented at most markets. The most notable increases in supply were at Dubbo, Casino and Wagga, up 53pc, 43pc and 15pc respectively. Victoria followed a similar trend, lifting 6pc, with Leongatha, Pakenham and Wodonga all reporting an increase in numbers. Consignments through SA declined 45pc, as numbers dropped at Naracoorte and Mt Gambier, while WA and Tasmania were relatively unchanged month-on-month.
Cattle contraception option explored
A recent MLA-funded research project found that a single dose of the vaccine GonaCon does not provide the response to make it an effective contraception option among northern heifers.
GonaCon is a vaccine used as a non-invasive way of controlling populations of wildlife in North America and has been used in the control of kangaroos in southern Australia, but its effectiveness amongst livestock in Australia was unknown.
The research project tested a single dose and two doses given 60 days apart in heifers and monitored the ovarian function of the animals to test efficacy.
The research investigated the application of the immuno-contraceptive drug for its potential to reduce the need for surgical spaying of heifers in the northern cattle industry.
Animals that received a single dose on the drug showed that it was not an effective option as only 10pc of the animals showed suppressed ovarian function.
The results from the group that received a double dose of the vaccine showed long-term suppressed ovarian function in five out of nine treated animals.
While response to the double dosage treatment were more promising, administering two treatments may not be practical in the northern industry when considered with its effectiveness rate.
The use of the vaccine is not gender specific and other research is underway to test if GonaCon given at higher dosages to bulls can deliver desired outcomes.
Beef exports to Japan exceeds 30,000t in May
Australia sent 30,374 tonnes of beef to Japan during May, almost on par with last year (down 1pc, or 204t) and the first time that monthly volumes reached the 30,000 tonnes mark since July 2012.
Subdued demand for Australian beef in the face of the US competition, combined with the depreciation of Japanese yen, has kept volumes low to Japan since late last year – challenging both Australian exporters and Japanese importers. Yet, high Australian cattle slaughter and some easing of the A$ is likely to have assisted Japanese buyers to secure more products in May, with frozen grassfed beef shipments to Japan totalling 15,109t during the month (down 2pc year-on-year, but 42pc higher from the previous month).
Chilled beef exports to Japan were steady at 11,560t, occupying 44pc of all chilled exports during the month.
NZ producers looking to commence rebuilding
Reasonable rainfall in most regions of NZ over the past couple of weeks combined with warmer than normal temperatures for May (an average 1pc higher), has helped boost pasture growth and producer sentiment (NZX, Agrifax market report).
After destocking early in the year, feed stocks on many farms have grown to a level where producers are becoming increasingly confident to begin restocking activities over winter. Recently, due to unprecedented growing conditions, solid demand has been reported for breeding stock at a number of saleyards, especially scanned in-lamb ewes, illustrating the intentions of producers to rebuild flocks to carry through winter.
South East Asian beef imports mixed during the first quarter
It was a mixed first quarter of 2013 for beef imports across South East Asia, with Singaporean beef imports 18pc lower than the first quarter of 2012, at 5160t (Global Trade Atlas, International Enterprise Singapore). Frozen beef imports fell 20pc, to 4111t, with a 7pc decrease in chilled beef volume, at 1049t.
Australia remained the largest supplier to Singapore during the first quarter of 2013, with the volume totalling 2232t – down 25pc on the first quarter of 2012, but 6pc higher than the five-year average. Chilled beef imports from Australia were 16pc lower than the March quarter of 2012, at 597t, while frozen beef volumes were down 28pc, to 1635t. Imports from South American countries during the March quarter of 2013 rose 38pc, to 1574t, assisted by increased supplies from Brazil (up 91pc, to 1335t) and Paraguay at 108t. While total beef imports from NZ during the first quarter of 2013 were down 37pc, at 1059t, the volume of NZ chilled beef imports improved 11pc, totalling 334t.
Thai imports totalled 4467t of beef during the first quarter of 2013, falling 32pc compared to the first quarter of 2012 (Global Trade Atlas, Thai Customs Department). While the majority was frozen product (90pc of total imports, at 4017t), Thailand imported more chilled product during the quarter, rising 20pc to 451t – assisted by strong demand for Australian chilled beef (up 11pc, to 401t). The increased intake of Australian chilled beef contributed to the total quarterly imports of Australian beef lifting 30pc, to 1300t. Though the quarterly imports of Indian beef during the first quarter of 2013 were down substantially (down 52pc on the first quarter of 2012, at 2523t), India still accounted for more than half (56pc) of total quarterly import volume.
Fast food attracts more customers in Japan
Foodservice sales in Japan during April were largely on par with the same month last year, with customer numbers increasing by 2pc thanks to firm demand for the fast food sector. However, spend per customers was down 4.1pc in the category, suggesting harsh price competition across the industry leaders.
The Japanese style fast food (mostly gyudon beef rice bowl) and noodles outlets showed similar trends during the month – increased sales (up 6.6pc and 8.5pc year-on-year) and customer numbers (up 8.pc and 11.1pc), but reduced spend per customer (down 1.6pc and 2.3pc), respectively. The western style (hamburgers) operations also lifted customer numbers (up 2.7pc), while it failed to grow sales (down 2.4pc).
The yakiniku (Japanese/Korean style barbecue) sector continued its strong recovery in April, improving all sales (up 9.4pc), customer numbers (up 7.6pc), and expenditure (up 1.6pc).
Japan monitors beef import volumes
Japan’s beef imports for April are forecast to reach 18,800 tonnes swt for chilled (up 11pc year-on-year) and 23,100t (up 14pc) for frozen beef, according to the Agriculture and Livestock Industries Corporation of Japan. May volumes are also expected to remain high (up 23pc for frozen), with the Japan Meat Traders Association reinforcing communication with importers for their discretion not to trigger beef import tariff safeguard system by keeping the clearance volume lower than the quarterly trigger level.
In the export market, the below parity Australian dollar, high slaughter numbers and slow demand in the Japanese market reportedly eased Australian beef offer prices to Japan this week. Yet Japanese buyers are heavily burdened by the depreciated Japanese yen and low price pressure from end users, resulting in cautious negotiations.
More South American beef to Hong Kong
The sustained growth in beef demand in Asia has helped to facilitate an increase in South American beef exports to the regions on 2013, especially to Hong Kong. With total beef imports up 71pc year-on-year, to 69,912 tonnes swt for the first quarter of 2013 (GTA), Hong Kong has become the second largest major destination in Asia for Brazilian beef and the fourth largest for Paraguayan beef.
Brazilian beef exports to Hong Kong during the first quarter of 2013 increased 100pc year-on-year, to 46,463t – along with the largest volume for offal exports since 2002. Offal shipments to Hong Kong rose 10pc year-on-year, to 34,846t for the same period.
Underpinning the growth in Paraguayan beef exports in 2013, shipments to Hong Kong for the first quarter of 2013 surged five-fold on the previous year, to 1975t. For the same period, Argentinean beef exports increased 15pc year-on-year, to 403t. In contrast, Uruguayan beef exports decreased 89pc for the same period, at 160t.
Also contributing to the increase in Hong Kong beef imports during the first quarter of 2013 was shipments from the US, up 162pc year-on-year, to 20,017t.
Interestingly, the countries with significant growth in shipments to Hong Kong so far in 2013, Brazil, the US and Paraguay, are currently restricted in shipping beef to China.
Australian beef export to Hong Kong for the first four months of 2013 are down 37pc year-on-year, at only 1386t.