Indonesian Ramadan passes with flat live cattle prices; Consumer resistance forces some Vietnamese abattoirs to close; Shanghai prices rising despite the ongoing northern drought – THIS REPORT NOW ALSO TRANSLATED TO BAHASA – click for more details
Bulan Ramadan berlalu, harga sapi hidup di Indonesia tetap stabil; Konsumen resistan, sejumlah rumah potong hewan di Vietnam terpaksa tutup; Kenaikan harga di Shanghai meski kekeringan terus melanda wilayah utara.
Australian live cattle exporters continue to watch intently for indications as to whether mining magnate Gina Rinehart’s Hancock Prospecting will be able to secure a potentially game changing breakthrough deal to export cattle from northern Australia to China.
Prices for frozen beef in China, which is the dominant type of beef exported by Australia to the market, are forecast to fall in 2017–18 as competition increases from other major exporters, particularly Brazil and the United States.
Weak demand from both Indonesia and Vietnam has not had the expected affect on the northern Australian prices which have in fact risen over May, with the usual May/June supply flush not being seen this year, and favourable seasons meaning producers are in no rush to offload stock.
Infrastructure development is happening at breakneck pace in China, as the country readies itself for an anticipated start to commercially-significant volumes of live cattle exports out of Australia.
Weak demand from both Indonesia and Vietnam must soon start to put serious downward pressure on northern Australian feeder prices, Dr Ross Ainsworth writes in this week’s South East Asia market, exclusive to Beef Central readers.
Weak demand is increasing the pressure on Indonesian lot feeders with some discounting of slaughter cattle during March to as low as Rp39,500.
Years of hard work in establishing a foothold in the sometimes challenging China beef market has paid off for a progressive family-scale branded beef supply chain based in NSW. The Mackenzie family’s Macka’s Australian Black Angus Beef business recently hosted a visit by customers of China’s huge Alibaba online retail platform.
There appears to be a general sentiment that the “new” supply and demand equation which includes Indian beef has reached a point where the instability caused by Indian supply has now been factored into the market (after capturing about 50pc of the business) and is no longer a disrupter to current day to day trading.