Earlier this week, MLA released the 2024 State of the Industry Report, a catch-all document on the economic importance of the Australian red meat sector and how we stack up against our global counterparts.

The report uses calendar and financial year data from 2023 to cover industry turnover, value add, number of businesses, employment and a detailed breakdown of the performance landscape of the beef, sheepmeat and goat sectors.

The value of red meat and livestock exports rose 3% to $18.2 billion in 2022–23.

In 2023, Australia was the second-largest beef exporter and the world’s largest sheepmeat and goatmeat exporter. Volumes of Australian beef and veal exports lifted 27% on 2022 totals. Sheepmeat exports were up 15%, creating the highest export figure on record, while goatmeat exports lifted an impressive 55%.

The United States (US) and China were both significant markets supporting exports during this period of high supply.

Goatmeat exports totalled 33,904 tonnes shipped weight (swt) in 2023, up 55% on the year prior. The US remains the largest destination for goatmeat, accounting for 42% of exports or 14,477 tonnes in 2023.

Australians are still some of the world’s largest beef consumers, ranked third behind Argentina and the US. Australia was also the largest sheepmeat consumer per capita in 2023, helped by the reduced retail price of red meat last year.

Over 400,000 people were employed through the sector, lifting last year alongside 76,999 red meat businesses, also up 3.2% on the previous year, indicating strength in the industry.

MLA

Cattle market

The cattle market generally eased this week, with the exception of the Dairy Cow Indicator. The easing in prices has been motivated by a slight decline in quality. Overall cattle yardings lifted by 5,064 head or 8% to 66,907 head, and Queensland experienced the seventh highest yarding on record at 30,929 head,

The Restocker Yearling Heifer Indicator eased by 27¢ to 272¢/kg liveweight (lwt) and yardings lifted by 2,325 to 4,481 head. Most of the lift came from Queensland, which increased by 978 head. At Roma, many of the previous week’s prices could not hold over to this week, particularly for lightweight yearling heifers. Market reports indicated buyers were more selective on light weight cattle and aimed for heavier cattle. Due to dry conditions, producers are offloading more lightweight cattle. There was also limited restocker cattle as most weaners were sent to northern Australia.

The Feeder Steer Indicator eased by 13¢ to 354¢/kg lwt, with prices easing in all states except for SA. Yardings lifted by 4,567 or a 29% lift to 10,978 head. At Dalby, lightweight yearling heifers returning to the paddock sold 15¢/kg cheaper. At Blackall, prices were 22% above the last sale due to good quality heavy feeder steers and heifers on offer. Market reports have indicated demand for heavier cattle and a lack of supply of cattle, particularly in southern Australia due to poor seasonal conditions.

Sheep market

There were mixed results in the sheep market this week. Notably, the Light Lamb Indicator and the Mutton Indicator both lifted by 2¢ to 10¢.  Sheep yardings eased by just over 1,000 head and lamb yardings followed a similar trend, easing by just under 10,000 head, totalling a 11,011 head reduction to 255,438 head.

Overall market reports have outlined a consistent trend of declining quality of old season lambs and more interest in new season lambs.

Despite the Heavy Lamb Indicator easing by 9¢ to 774¢/kg carcase weight (cwt), there continues to be demand for well-finished lambs. There are also signs of grain-assisted lambs coming to market and less interest in older light lambs.  At Wagga, 14,350 new-season lambs were yarded, with a significant proportion being trade and heavy export lambs.

Slaughter

Week ending 20 September 2024

Cattle slaughter eased by 210 to 140,192 head, however slaughter has remained stable overall, with minor fluctuations in Queensland, NSW, Victoria and WA. Queensland slaughter eased by 628 to 74,354 head, while NSW slaughtered lifted by 160 head. Slaughter year-to-date is 10% higher, with significant lifts in both Queensland and Victorian slaughter (12% and 41% respectively).

Lamb slaughter continued to ease by 22,289 to 423,435 head and remained 11% below 2023 slaughter figures. Slaughter dropped in most states except for Tasmania, where slaughter lifted by 1,649 head. Notably, Victorian slaughter eased by 20,458 head, a 9% drop compared to last week.

Sheep slaughter told a very different story, lifting by 8,740 to 221,353 head (marking it as the largest sheep slaughter since the 2019 drought). Victorian sheep slaughter lifted by 6,575 to 69,013 head, the second-largest sheep slaughter in the last four years. WA sheep slaughter rose by 2,113 head, while NSW slaughter eased by 421 head.

Attribute content to: Emily Tan, MLA Market Information Analyst

MLA

The Head of External Affairs for AIMS (Association of Independent Meat Suppliers), Dr Jason Aldiss, has expressed growing concerns over the Food Standards Agency’s (FSA) plans to raise charge rates for the meat industry.

“Inflationary pressures are affecting all sectors, yet the FSA’s decision to pass these costs directly onto the industry is both excessive and dangerous,” said Jason.

“The FSA’s highly expensive and ineffective Official Control delivery model is already causing significant harm, with the meat industry essentially footing the bill for the profits of private veterinary companies contracted by the FSA,” he continued. “The FSA’s gold-plated veterinary attendance requirements in slaughterhouses combined with the profit-making objectives of their delivery partners, have resulted in plants being both overstaffed and overcharged to the detriment ultimately of the consumer”.

“Furthermore, the FSA is deeply bureaucratic and inefficient, with multiple layers of management idling and administrative processes adding unnecessary costs.”

“The FSA charges are exorbitant compared to other EU regulators those putting the UK meat industry at a severe competitive disadvantage in both domestic and oversea markets”.

AIMS are now calling for a fundamental overhaul of the FSA’s charging mechanism, advocating for a headage-based system, which is globally recognised and used by most regulators. This shift would eliminate the need for any form of discounting overnight and streamline costs for industry operators. It is vital that the FSA moves towards a fairer, more efficient system that serves both the taxpayer and the industry.

“We must be clear: if the FSA removes the current discount structure without addressing the gross inefficiencies in its bloated bureaucracy, over half of Britain’s meat plants could face immediate closure. Such an outcome would directly undermine the UK’s food security, vibrant local communities, and economic growth – objectives that the Labour government has rightly prioritised to help navigate the ongoing financial crisis.”

“It is now up to the FSA to take stock and ensure it does not single-handedly destroy the foundations of the UK meat industry. Industry stakeholders must make their voices heard during the FSA’s Call for Evidence on meat charging, ahead of the Board’s discussion on 11th December 2024.”

AIMS

FSA criticised over push to fast-track ‘lab-grown meat’ approvals in the UK

FSA launches consultation on Mechanically Separated Meat

MercoPress

Global poultry markets are poised for continued growth, with strong demand driving bullish forecasts, according to the latest quarterly report from Rabobank, which points to rising global consumption and constrained supply as key factors bolstering market optimism.

The report highlights a surge in consumer preference for poultry, particularly chicken, as a more affordable and versatile protein source. As inflation continues to strain household budgets worldwide, many are turning to chicken as an economical alternative to beef and pork.

While demand remains high, the global poultry industry is grappling with supply-side challenges. Many poultry-producing regions have been impacted by rising input costs, particularly for feed and energy. Rabobank notes that feed prices have surged due to unpredictable weather patterns affecting grain harvests and the geopolitical tensions that have disrupted supply chains. This, in turn, has pushed up production costs for poultry farmers.

Poultry’s cost-effectiveness compared to other meats has allowed the sector to remain resilient. “Even with these headwinds, poultry remains the most affordable protein option globally, which continues to underpin the bullish outlook,” said Nan-Dirk Mulder, Senior Analyst at Rabobank.

Strong Growth in Key Regions
Rabobank’s report identifies key regions where poultry markets are expected to experience the strongest growth. Asia, led by China and India, is forecasted to see substantial increases in consumption, driven by expanding middle classes and urbanisation.

Meanwhile, North American and European markets are experiencing solid demand, particularly in the retail and foodservice sectors, where chicken is increasingly featured as a primary protein.

Latin America, especially Brazil, is expected to benefit from growing export markets, as countries such as Saudi Arabia, Japan, and South Korea increase their imports to offset domestic production challenges.

Challenges Ahead
Despite the overall bullish outlook, Rabobank warns of potential risks ahead. Outbreaks of avian influenza remain a constant threat to supply chains, with several regions continuing to battle isolated cases. Moreover, the ongoing volatility in global grain markets could further elevate feed costs, squeezing profit margins for producers.

Sustainability and animal welfare concerns are also increasingly shaping consumer choices, with markets in Europe and North America placing greater emphasis on sourcing from producers that adhere to high welfare and environmental standards. “Balancing cost-efficiency with consumer expectations for sustainability will be key for poultry producers moving forward,” the report notes.

The report concludes that poultry will remain the fastest-growing protein segment globally, buoyed by strong demand, particularly in emerging markets. With continued investments in efficiency and sustainable production practices, the industry is well-positioned to navigate potential obstacles and capitalise on market growth in the coming years.

 

Throughput

There were 33,058 cattle processed in DAFM approved plants during the w/e 24 August, 2024, taking throughput for the year to date to 1,134,248 head.

This is on par with the corresponding period in 2023 when a total of 1,132,248 cattle were processed. There have been 812,537 prime cattle processed in the first 34 weeks of 2024, a 1.7% decrease from the same period last year (-13,841 head).

Cow throughput has remained strong with 280,823 cows processed so far this year, a notable increase of 25,820 head (+10%).

 Quotes

There was a steadying in the base quotes at Irish meat plants this week in response to tighter supplies of suitable cattle. In general, producers were offered a base price of €5.00-5.05/kg for steers with reports of up to €5.10/kg available. Starting quotes for heifers are in the region of €5.10-5.15/kg this week with similar room for negotiation being reported.

The trade for young bulls was also described as steady, with prices of between €5.20/kg and €5.30/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.30-4.40/kg, with a range of €4.75-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

Prices

For the week ending 17 August 2024, the average price paid by Irish beef processors for R3 increased marginally to €5.02/kg. This remained 28c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.72/kg.

Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc. Across the EU, the average reported price for R3 grading young bulls was €5.07/kg (excluding VAT) for the week ending 10 August, 2024. This is 29c higher than Week 33 of last year when prices averaged €4.78/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have started to firm again. This week the average UK R3 steer price increased by 3c/kg to €5.70/kg (equivalent to £4.90/kg)

Bord Bia

Prices

Deadweight pig prices in Ireland are on an upward trajectory in response to relatively tight supplies for slaughter. Prices have increased steadily week on week from a low of 190c/kg in mid February 2024.

The average price paid for grade E pig prices in Ireland for the w/e 17 September 8th was €2.25/kg excluding Vat. The current Irish price is the same as the corresponding week last year

Throughput

While throughput has improved in the last quarter demand continues to run ahead of supplies. Total throughput YTD is 2,237,287 which is marginally behind the corresponding period in 2023.

The latest available data from the CSO shows that Irish exports of primary pigmeat products were valued at €243 million, 2% higher than the corresponding period in 2023.

A recovery in pig supplies for processing and a slight improvement in carcase weights have contributed to a similar 2% increase in export volumes during H1.

Bord Bia

The Association of Independent Meat Suppliers (AIMS) is proud to announce the appointment of Dr Jason Aldiss BEM BVSc MRCVS as its new Executive Director, effective from January 2025.

Jason was selected after a rigorous selection process, emerging as the ideal candidate from a pool of exceptional individuals.

He will work alongside Norman Bagley who now wishes to reduce his day-to-day administrative and management duties.

Members should be assured that Norman remain a vital figure within AIMS, offering his invaluable insights and experience to members.

AIMS remains committed to its core mission of providing robust representation and advocacy for its members. As the meat industry faces ongoing challenges and opportunities, AIMS is well-positioned to adapt and continue delivering the high level of support its members have come to expect. With Dr Aldiss at the helm, the organisation is ready to navigate this next chapter with confidence and strength.

This leadership transition represents not only continuity but also an exciting new phase in AIMS’ evolution, ensuring that the organisation remains a steadfast and dynamic voice for the British meat sector.

AIMS

AIMS: Norman Bagley steps down

Cattle market

This week, cattle yarded through saleyards eased 21% to 53,161 head, though year-to-date throughput remains 29% above 2023 levels.

The cattle market was mixed this week. Restockers experienced some recovery, with the National Young Cattle Indicator lifting 7¢ to 362¢/kg carcase weight (cwt). Online sales in NSW made up the most significant portion of the indicator, followed by Queensland (Roma and Dalby) and Queensland online sales.

Improved conditions of young cattle and increased demand for steers lifted prices despite elevated supply. Improved quality of feeder cattle across NSW lifted feeder steer prices 3¢ to 349¢/kg liveweight (lwt).

Sheep market

Sheep and lamb yardings eased after the large yarding the previous week. The throughput of lamb fell by 22% to 171,082 head, and sheep yardings eased by 25% to 81,367. This resulted in a combined decline of 23%, driven mainly by decreases in NSW.

Despite a reduction in supply, the lamb market didn’t experience a recovery and continued to ease week-on-week. This was experienced across all states and indicators.

The Light (596¢/kg cwt), Heavy (783¢/kg cwt) and Trade Lamb (778¢/kg cwt) indicators all fell between 27¢ and 48¢. Buyer participation varied due to mixed quality through saleyards, and there was less demand due to maintenance shutdowns across some plants.

The entrance of significant numbers of mixed-quality new season lambs across NSW and Victoria saw a supply-driven price decline.

Slaughter

Week ending 13 September 2024

Cattle slaughter lifted 3% on the previous week to 140,402 head. NSW (33,330), Queensland (74,982), SA (3,275) and WA (2,796) had a 1% or less change week-on-week. Numbers through Victoria lifted 3% to 21,910, and Tasmania saw a significant lift to 4,109 with the return of reporting after scheduled shutdowns.

Sheep slaughter lifted 27% to 212,613 head, the third-highest throughput in the past five years and the most significant kill week since December 2019. The lift was driven by some processors coming back online, and a 47% increase in Victoria (62,438), a 27% increase in SA (22,280), and a 24% increase in NSW (85,428), which have experienced a generally dry winter period. Lamb slaughter lifted 9% to 445,724 head, also driven by processors coming online in the southern states, lifting 74% across SA to 52,342, and 10% in NSW to 11,278 head.

Combined slaughter increased 14% nationally to 658,337 across all states bar Tasmania. South Australia saw the biggest lift, up 56% from the week prior. Year-to-date, sheepmeat slaughter is still 15% above last year’s figures.

Attribute to: Erin Lukey, MLA Senior Market Information Analyst

MLA

Australian Red Meat Exports Boom in UK since Free Trade Agreement

The national lamb market today is very different to what it was 12 months ago. Drying conditions and concerns of an emerging El Niño event have impacted market confidence, lifting turn-off through saleyards. Last year, the flock had been rebuilding for three years and was operating at a high base with supply at long-term records. This dynamic caused the most significant price drop in recent years.

The livestock markets have demonstrated resilience in 2024 and are significantly more stable than in the past five years.

During September 2023, lamb indicator prices reached historic lows. The Light Lamb Indicator fell to 287¢/kg carcase weight (cwt), and the Restocker Lamb Indicator fell to 250¢/kg cwt – the lowest nominal price of both indicators since 2007. In the same month, the Trade Lamb Indicator fell to 433¢/kg cwt, and the Heavy Lamb Indicator fell to 451¢/kg cwt, their lowest nominal price since 2014 and 2013.

An extended and severe price drop from record highs also occurred in September 2023 – prices fell between 50% and 75%. In October, much of the country felt relief due to rainfall. The El Niño declaration was removed and prices returned as producers felt comfortable holding onto stock over the summer months.

All lamb indicators entered the new year strong, with the Restocker and Light Lamb indicators fetching their highest price during the year’s first sale at 767¢/kg cwt and 685¢/kg cwt, over 160% above the September 2023 bottom. Indicators have remained strong throughout 2024. The Heavy and Trade Lamb indicators climbed to their annual peak in August at 865¢/kg cwt and 878 ¢/kg cwt, over 95% above the September bottom.

Despite current prices not reaching their rebuild records, they remain 79–158% above the same time last year. The current market conditions, when compared to the past five years, show a positive shift towards stability and alignment with seasonal trends, instilling a sense of optimism in the market.

MLA

Australia reaches trade deal with UAE to boost agriculture exports