Processing

Weekly kill: Qld grids suspended as processors play catch-up after Cyclone Alfred

Jon Condon 11/03/2025

MANY Queensland and northern NSW processor direct consignment grids are suspended this week, as operators play catch-up after the production impacts experienced over the past week due to Cyclone Alfred.

Beef Central has revised its estimate made yesterday that up to 15,000 head of cattle have been held back from northern processor shifts cancelled since Thursday.

A Queensland processor that escaped our attention in yesterday’s cyclone impact report was Oakey Beef Exports on the Darling Downs. While far enough west to escape the direct impact of the cyclone, Oakey was forced to skip kills on Thursday, Friday and yesterday due to logistical issues.

Following the Port of Brisbane closure last Sunday week (March 2) empty containers quickly became an issue for beef processors (including Oakey) by the middle of last week, in addition to the ability to store larger quantities of chilled and frozen beef as product started to back-up. Some major arterial routes taken by livestock transport vehicles into Queensland’s southeast corner, including the Warrego and Cunningham Highways, have only re-opened this morning.

In some cases, northern NSW processors diverted chilled and frozen beef containers to Sydney’s Port Botany last week, instead of their normal departure point through Port of Brisbane.

Oakey’s three-day closure has added another 3000 head to our impact assessment made yesterday, when we suggested that around 15,000 cattle had been held over due to plant stoppages in southern Qld and northern NSW. That figure should now read 18,000 head.

All of that has lowered demand for additional slaughter bookings for the time being, as processors work their way through the backlog of cattle. Most are prioritising grainfeds, for obvious reasons.

On top of that, many Queensland processors are now well-forward on priced and un-priced bookings. One Central Queensland plant is now taking bookings for the first week of May, having been solidly pursued over the past week. Some of those bookings at least, appear to be a month earlier than normal.

Other Queensland operators are more current, but spaces are filling fast through the remainder of March.

While the circumstances vary a little from site to site, there were evidently no active grids available from large multi-site export processors in southern or Central Queensland this morning. A large northern NSW processor has taken similar action, withdrawing priced grids at the moment.

Most are currently taking space bookings only, with prices to be negotiated closer to proposed slaughter date – confident that they have the next few weeks’ worth of operations covered. That applies in Central Queensland (unaffected by last week’s cyclone) as much as the state’s southeast corner.

On the positive side of the ledger, last week’s weather event has delivered some useful, if patchy falls in pastoral areas off the coast that were previously looking for a drink. Isolated falls of up to 100mm have been reported in areas like Wandoan, Taroom and Eidsvold have been recorded, as well as on the eastern half of the Darling Downs.

Labour challenge remains

Compounding congestion problems has been the ongoing labour challenge in processing, as highlighted in yesterday’s MLA’s 2025 Cattle Industry Projections report.

While there are delays in the issuance of last week’s NLRS seven day slaughter report due to public holidays in some states, the week before (week ending 28 February) recorded the highest kill of the year so far, and the highest seen since 2020, at 147,133 head. That was up 2pc on the week before, and 13,000 head or 10pc above the same week last year.

Despite that, national weekly kills of +155,000 still look like a stretch this year, given current processing labour resourcing – despite the health availability of cattle and the obvious attraction of strong international meat prices at present.

While no quotes are available for Queensland or northern NSW processors this week, direct consignment prices further south appear to be little changed from last week.

In southern NSW, one processor has 590c/kg available on heavy cows and grass steers 670c, while eastern regions of South Australia having offers of 620c/kg on cows and 670c/kg on four-tooth grass ox.

As described in more detail below, yardings in saleyards were noticeably lower early this week, as vendors apparently anticipated reduced processor buyer appetite on cows and heavy steers.

Saleyards offerings well down

The impact of Tropical Cyclone Alfred was seen in saleyard yardings early this week, where every selling centre was sharply down in yarding size. Part of that, at least was an expectation of lower processor demand for slaughter weight cattle, as a result of the impacts of the weather last week on processing operations in Queensland and northern NSW. In other areas further south it was about renewed optimism over pastoral conditions if rain arrived this week.

Gunnedah sale this morning yarded  only 950 head, less than half last week’s offering, despite the fact that a strong rain event was yet to eventuate across the drawing area at the time the sale was held. The condition of the offering showed the effects of a less than desirable season with a large percentage unfinished. Processor competition was reduced. A small number of heavy grown steers sold to a dearer trend with the best of the grown heifers also dearer. Following some big declines in the market over the previous few weeks the cow market saw a dearer trend of up to 6c/kg on a much smaller supply.

Numbers at Wagga sale yesterday dropped by 78pc to 3875 head, with producers optimistic about rain from Cyclone Alfred. The market reacted across most categories due to the shortfall in supply.  Heavy export cattle were in short supply, prompting buyers to step up. Heavy steers and bullocks sold from 314-414c/kg. Heavy cows were sold to a smaller buying group, who were not prepared to push the market. Prices were unchanged to 6c cheaper, selling from 280-304c/kg. Better quality leaner cows less than 530kg sold for 230-255c/kg.

Even as far south as Wodonga sale this morning, numbers dropped by 30pc on last week to 1200 head. The market was solid with northern restockers and feedlots looking to secure well-bred cattle. Domestic and export buyers along with feedlots made their presence felt on well finished cattle. In the export market  competition was solid. Heavy steers averaged 363c/kg, bullocks sold to a larger group of buyers to average 347c. A large offering of cows saw prices unchanged, with heavy cows from 282-298c/kg, while leaner types less than 520kg gained 5c to average 260c.

Roma sale this morning yarded 3420 head. With reduced numbers due to scattered showers and more predicted. All the regular processors feedlotters and backgrounders present and operating with the market stronger for domestic and heavy feeders however heavy bullocks easier. Cows were yet to sell by the time this interim report was lodged. At the time of interim report yearling steers 200 to 280kg with the majority selling from 328c to 478c/kg. Yearling steers 280 to 330kg making to 420c to average 394c/kg. Yearling steers 330 to 400kg also improved in price and sold to 382c/kg.  Grown steers 400 to 500kg topped 362c/kg. Bullocks over 600kg to 328c/kg to processors.

 

 

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