Report shows restocker rebuild ongoing
Australian producers will continue to snap up cattle in a bid to rebuild the national herd. Here is what a new report has forecast.
AUSTRALIAN livestock producers continue to restock depleted herds, as forecasted summer rain buoys confidence.
Meat and Livestock Australia’s latest cattle projections report, released today, put adult cattle slaughter at seven million head for 2020, in a sign the national herd rebuild is gaining pace.
The report also showed the national cattle herd is forecast to grow by almost 2 per cent to reach 25.1 million cattle by June next year.
MLA market analyst Stuart Bull said the outlook for the livestock industry was positive, despite the challenges of COVID-19 across the globe.
“While the COVID-19 pandemic has disturbed some markets and market segments, overall, both global and domestic demand for Australian beef remains stable,” Mr Bull said.
“There is the expectation that an earlier La Niña influenced monsoon season will offer northern producers greater confidence. Meanwhile, cattle continue to flow south, as northern sellers take advantage of strong prices and southern buyers, who have benefited from winter rains, look to rebuild ahead of an anticipated supply shortage.”
Mr Bull said the July MLA forecast for a 17 per cent drop in cattle slaughter compared to 2019 slaughter levels was unchanged.
“As a flow-on effect of a sharp decline in adult cattle slaughter, national beef production is now expected to contract 15 per cent year-on-year to 2.05 million tonnes carcass weight in 2020,” Mr Bull said.
“This contraction would represent the lowest level of national beef production since 2001. National adult carcass weights are expected to lift 9.4kg or 3 per cent to average 293kg/head in 2020, driven by improved feed availability and a steady fall in the share of female cattle killed.”
Factors such as the ongoing African Swine Fever outbreak in China will continue to impact demand for Australian beef, according to the report.
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