Approximately 8,797,513 head were processed in Australia over the past 12 months – the second highest in any financial year since FY1978−1979.

Processor-ready cattle numbers have lifted due to variable rainfall, or lack thereof, across cattle-producing regions.

Younger cattle show an increasing share of processor throughput

The MLA Cattle Transactions dataset allows MLA Market Analysts to separate saleyard processor purchase numbers by category. This provides indications of steer age and turnoff decisions for the following categories:

• Vealer steers: Castrate male cattle with no permanent teeth and less than 12 months old.
• Yearling steers: Castrate male cattle – predominantly with no permanent teeth but two are permissible.
• Grown steer: Export-type castrate male cattle with no more than eight permanent teeth – usually four to six teeth.

Grown steer processor purchases have decreased nationally over the last three quarters. In the June quarter, only 59% of processor steers were grown steers – the smallest proportion since June 2019 – the peak of the national drought.

Young cattle processor purchases have conversely increased, with vealer steers making up 7% of the June quarter sales.

Contrasting climate conditions increase slaughter-ready animal numbers

Dry conditions impacting southern Australia have caused destocking to manage carrying capacity, while favourable conditions across northern Australia have generally led to herd growth. An elevated supply of processor-ready animals has resulted.

Climate differences across states have also led to increased interstate cattle transactions. Northern systems are taking lighter cattle for growth while southern systems take finished cattle for processing.

National grown steer numbers have decreased due to the need for stock turnoff. A state-by-state supply breakdown confirms southern states are driving the younger turnoff.

Victoria has seen a dip in grown steer throughput – a result of ongoing drought conditions. Conversely, in the past quarter, Queensland is the only state to see increased grown steer saleyard throughput. Northern systems have utilised feed availability by purchasing and growing lighter cattle from the south.

Elevated supply of younger steers could result in a lower national carcase weight average.

However, improvements to genetics, productivity and the use of feedlots for drought mitigation may combat this reduction with less impact on national beef production.

Source: MLA