Processing

Weekly kill: Qld offers steady; some declines in the south, as production lifts

Jon Condon 29/10/2024

ADEQUATE, if not plentiful slaughter cattle supply, good operating conditions and the addition of a few extra staff have seen back-to-back seven-day national slaughter records for the 2024 season set this month.

The seven-day cycle ended Friday 25 October saw national adult cattle slaughter hit a season-high of 145,337 head, up another 1500 head on the previous in-year record set a week earlier.

Barring weather disruptions, it’s setting up the final quarter of 2024 as a the strongest beef production period since the fourth quarter of 2019. In addition, staffing levels at some plants have gradually crept higher as the year has progressed, typified by JBS extending its kill at Dinmore, near Brisbane into a second shift, and planning to get back to full working capacity by January next year.

Excluding week 41 (ending October 11) impacted by public holidays, the beef processing industry has averaged more than 142,300 head for the past four weeks – the highest four-week production level seen since December 2019, when the industry was still furiously killing cattle due to drought.

Already, the industry has processed an additional 65,000 head over the past four weeks compared with the same period last year.

Large grainfed numbers closing-out in recent weeks have supported the trend. National cattle numbers on feed at the end of the June quarter were up 64,000 head on March, and some of those extra numbers are finishing their programs during October. A rise of 64,000 over a quarter effectively represents an additional 5300 grainfeds a week, looking for a processor home.

The September quarter cattle on feed report should hit stakeholders’ inboxes in around a  fortnight’s time, with strong expectations of another rise. While the lengthy delay in the delivery of the quarterly feedlot numbers report irks some in the industry, it is designed to avoid export meat traders getting beaten-up by customers overseas over price, when reported numbers are higher than expected.

Slaughter grids mostly steady

Reflecting current high throughput and strong spring cattle supply, there’s been no change in major Queensland slaughter grid offers this week, and only minor adjustments to offers in some southern states, where supply has improved through the past month of warmer weather.

Processors say they are generally well covered for slaughter stock requirements now until the middle of November.

In southern Queensland, over-the-hooks grids from competitive export processors are this morning showing 600-610c/kg for four-tooth steer with implant, and cows 530-540c/kg. Some plants in the region appear a little better placed than others for rosters into November.

Central Queensland rates are mostly 10c behind those numbers.

Recent storm rain across parts of Southern and Central Queensland has caused a few cancellations and postponements in deliveries, but not causing any serious disruptions, processors said. Some centres like Wandoan have had 85-90mm in recent days, with one six-deck load being held over until next week.

Forward contracts on 100-day grainfed ox for February delivery in southeast Queensland are showing 670c/kg, down from 680c for January contracts.

In eastern parts of South Australia, some grids have lost 20c/kg since this time last week, with grids seen this morning showing 610c/kg on grass four tooth ox and 550c/kg on heavy cows.

After drops of 10-20c/kg in offers for both grass steers and cows last week, some processors in southern regions of NSW have left grids untouched this week, with cows currently at 510c/kg and four tooth grass export steer no HGP on 590c. Just four weeks ago, those same grids were 50c/kg higher, with cows at 560c, as spring supply has lifted.

Saleyards channel

Trends are mixed in slaughter-weight saleyards trading activity early this week.

Gunnedah sale this morning yarded 2350 head, down around 300 head from last week. Young cattle were once again offloaded in large numbers while there was a good supply of export cattle. Heavyweight grown steers and well finished manufacturing steers attracted strong processor demand to sell to a dearer trend, there was however some quality related price change. There was improvement in the heavy cow market of 10-14c/kg while the lighter weights saw a firm to dearer trend with some quality related change.

Wodonga sale this morning yarded only 900 head, down 50pc on last week due to earlier cheaper price trends. Quality improved notably and so did prices. The  market was very strong with buyers willing to chase the market for all well finished types in any category. Bullocks sold to a bigger group of buyers which resulted in a price lift of 19c with the bulk making from 345-372c/kg. The smaller offering of cows met a bigger field of buyers and prices improved over all classes. Heavy cows gained 7c to average 296c/kg.

While this morning’s Roma sale is still in progress, an interim report indicated a yarding of 5700 head, much the same as last week. Some local beneficial storms were reported in the supply area. The market could not maintain the levels of the previous sale. However certified grainfed steers sold to 346c/kg. Grown steers 500-600kg topped 368c/kg and bullocks +600kg sold to 330c/kg.

Naracoorte sale this morning yarded 550 – about half the previous week’s offering, influenced by the weaker market. Agents also advising there is less prime cattle in the area after the late and dry season. About half the yarding was cows. The cow market showed a cheaper trend over the heaviest beef pens, while the second draft held up reasonably well before bidding tailed off on any very plain conditioned types which sold under 200c/kg. The highest price points were 354c/kg for some heavy grown black steers; and 350c and 343c/kg for the pick of the few vealer and yearling types to the trade. In the cow market auctioneers tried to entice 300c/kg for the lead pens of heavy females but exporters would only go up to 290c/kg in a softer result. The middle draft of cows were around firm at 270-290c/kg.

Dubbo sale last Thursday yarded 5500, up 40pc on the week before. Grown steers and heifers were well supplied with plenty in the 500 to 600kg weight range and there was a good run of heavy cows. Grown steers and heifers sold from a firm to easier trend as did the cows. Grown steers and bullocks were firm to 5c softer selling from 296-364c and heifers followed a similar trend selling from 290-350c. Cows were firm to 4c softer with the heavy weights 260-292c and the medium weight 2 score lifted 3c, 220-256c/kg.

 

 

 

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. Jack Tuberty, 03/11/2024

    You stated in this article that the 145,300 weekly kill was in a 7 day work week.
    Question when do these workers get any time off?
    Jack

    The reference to seven days is the cycle of the report, Jack. Plants in Australia work a variety of shifts. JBS Dinmore, for example, currently works two extended shifts, four days a week, with three days off. Others work five days of conventional shifts, and others, six days, with staff rotating in and out. No staff, to our knowledge, work seven-day weeks with any regularity. Editor

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