As we ease into spring, the outlook for cattle producers appears favourable.
According to Meat and Livestock Australia’s (MLA) latest projections, released recently, beef farmers are set to experience one of the best springs in recent memory.
This is especially true for cattle producers in Australia’s eastern states, thanks to good climate and solid market performance.
MLA’s Stephen Bignell says the favourable conditions are encouraging, with the national herd estimated to reach 26 million this year – five per cent more than 2020 levels.
“Currently there is an abundance of feed which is encouraging stock retention,” he said.
“This tight supply is being reflected in lower saleyard throughput, reinforcing that the national herd rebuild is well underway.
“Slaughter is forecast to drop this year on the back of the national herd rebuild, as producers retain more stock, however, it is expected to pick up slightly toward the end of the year as more cattle come off feed.”
Mr Bignell noted that strong spring weather forecasts will also lead to a rise in the average carcase weights, resulting in higher weight gain among livestock.
“Carcase weights have been revised 11kg higher, now averaging 311.7kg,” Mr Bignell said.
“And slaughter will remain depressed, with the 2021 volume expected to hit 6.3 million head.”
Mr Bignell also explained that predictions show higher production figures, despite slaughter declining.
“Total production is being forecast to 1.96 million tonnes cwt, highlighting Australia’s ability to maximise beef output despite low supply,” he said.
In relation to prices, Mr Bignell says rain events remain the key indicator of market performance.
He also noted that, as economies continue to recover from COVID-19 across the globe, demand for Australian beef should also improve.
“COVID-19 continues to disrupt beef trade and sales in many Asia-Pacific nations,” he said.
“However, economic growth rates are forecast to gradually lift, maintained by improved vaccination rates in developed markets and improved consumer sentiment supporting beef consumption and import demand.”
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