News

Quarterly red meat production lifts as national herd enters destock phase

Beef Central 22/08/2024

THE latest quarterly statistics on livestock slaughtered and meat production from the Australian Bureau of Statistics have shown that the female slaughter ratio for the Australian cattle herd has lifted to 53.1 percent, which places the industry in a destock phase.

This increase in the FSR comes alongside a 17pc lift in cattle slaughter to 2.1 million head for the June quarter, the highest seen since the 2019 drought.

MLA senior market information analyst Erin Lukey said the ABS data showed that the female slaughter ratio (FSR) had increased across the country.

The industry uses 47pc FSR as a benchmark as to whether the industry is in a restock, steady or destocking phase. A quarterly FSR of 53pc is the second consecutive quarter above this benchmark, which indicates the cattle herd has entered a destocking period.

“The ABS data has revealed lifts to FSR across all states which has lifted to its highest female turnoff since 2019, and the largest quarter on quarter lift to their FSR among other states,” Ms Lukey said.

“Thanks to four consecutive years that have allowed for rebuild and maintenance, the Australian cattle herd is high when compared to historic averages. Cow retention over this time has created a large female herd, which are now ready for turnoff.”

Higher beef production

Saleyard prices remained well above year-ago levels, as strong demand for Australian beef in the global market helps to maintain confidence as production rises.

The increase in cattle slaughter has consequently led to an elevated beef production quarter as well.

Beef production rose 14pc from the March quarter and 19pc from the June quarter last year, to 648,763 tonnes. This is the largest quarterly production total since 2015, and the fourth-highest volume on record.

Lamb trends similar

Last quarter was also a record quarter for lamb, with 177,147t produced, 6pc above the March quarter this year and 19pc higher than the same quarter last year.

“High red meat export volumes over the June quarter show that demand is growing overseas at the same time that Australian supply is rising,” Ms Lukey said.

Lamb slaughter lifted to 7.2 million head over the quarter, which is Australia’s highest lamb slaughter figure on record and the first time it has been above seven million head.

Combined sheep and lamb slaughter rose 2pc from Q1 2024 and 16pc from Q2 last year to 9.9 million head. This makes Q2 the largest quarter for sheep and lamb slaughter since 1973.

Ms Lukey said Australia’s sheep flock had changed significantly over the last fifty years.

“A move towards meat breeds, and more recently to shedding animals, has opened the door to a new way of sheepmeat production. The flock is operating in a new normal, with more lambs being grown, leading to more production,” she said.

Lamb slaughter across Australia lifted to its highest number ever with 7.2 million head processed in Q2. This was 4.2pc higher than last quarter’s record figure and 19pc higher than at the same time last year.

For the financial year, 27.5 million lambs were processed, making the 12-month period the largest on record, and 25pc above the five-year average.

Adult sheep

Sheep slaughter was down 2pc this quarter to 2.7pc, although last quarter the record was the highest since 2018. For the financial year, sheep slaughter lifted 19pc on last year to 10.2 million head, which was the highest since 2008.

Combined sheep and lamb slaughter for FY 2023-24 lifted 20pc from 2022-23 to 37.8 million head.

 

Source: MLA

HAVE YOUR SAY

Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

  1. Howard Gardner, 22/08/2024

    The figures in this article are most interesting, as is your reference ” the Australian herd is high when compared to historic levels.” It would also be of interest to know what this increased figure is please?

Get Beef Central's news headlines emailed to you -
FREE!