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.
Funds raised by Australian live cattle exporters have helped to expedite the building of a new educational centre to benefit visually impaired and disabled children and adults in Indonesia.
Cattle exports from northern Australia have fallen by 25pc compared to last year, latest port data from January to the end of April shows.
The Australian Livestock Exporters’ Council has welcomed the release of a report providing a detailed analysis of Australia’s $2 billion-plus livestock export industry.
Mining magnate and rapidly-expanding beef producer Gina Rinehart appears to be on the brink of launching an ambitious plan designed to ultimately export up to 800,000 head of Australian live cattle to China each year.
Weak demand is increasing the pressure on Indonesian lot feeders with some discounting of slaughter cattle during March to as low as Rp39,500.
For the first quarter of 2017 feeder and slaughter cattle exports were back 45pc compared with 2016 levels, to 161,045 head, underpinned by lower availability of Australian cattle, high cattle prices and a range of in-market challenges.
Anyone who walked by the LiveCorp trade booth at the NTCA conference last Friday would have noticed conference delegates sitting on stools and staring into enclosed headsets, and moving a little like astronauts as they were transported into an immersive visual environment.
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.