The Australian cow market is experiencing increasing volatility, with shifting market fundamentals likely causing the fluctuations. Record prices have led producers to capitalise on a strong cow market, influenced by weather conditions and a changing geopolitical landscape.

Market Fundamentals

The cow market is currently dominated by the basic principles of supply and demand. When supply increases, prices tend to ease. This is evident as an increase in the supply of leaner cows has decreased the price, but producers are trying to take advantage of the highest prices seen in over three years.

Price Trends

For the final week of March, the weekly average price for the Processor Cow Indicator sat at 304¢/kg liveweight (lwt), which was 10% above the previous week’s price and 28% above the 10-year average. Last week, the price lifted by 33¢ to 319¢/kg lwt, with heavy cows at Wagga being sold for 322–360¢/kg lwt. Producers flocked to the saleyards, resulting in a 40% lift in the throughput of cows to the market. Wagga recorded 2,150 cows on 7 April and 1,995 cows on 14 April.

A similar trend was seen at Dalby on 9 April, with cows and heifers dominating the sale. The saleyard recorded 991 cows while prices eased by 27¢ to 285¢/kg lwt. However, in the previous week, cow yardings sat at 513 while prices lifted by 31¢ to 312¢/kg lwt. An increase in yardings has meant a decline in quality, with a larger proportion of leaner types of cows coming to the market; however, heavy cows still command a premium over leaner cows.

Regional Variations

The volatility in the cow market is reflected in different regions. At Wagga, heavy cows were sold for 322–360¢/kg lwt, while at Dalby, prices eased to 285¢/kg lwt. The varying prices across regions indicate the impact of local supply and demand dynamics.

Impact of Weather and Geopolitical Factors

Uncertainty in the meat market will drive volatility. The US tariffs, as well as the recent floods in Western Queensland, have created an environment for potential market volatility. The impact of these events on the market is unknown but has led to producers being more cautious.

The Australian cow market is experiencing significant volatility, driven by shifting market fundamentals, record prices, and external factors such as weather conditions and geopolitical changes. Producers are capitalising on the strong market, but the future remains uncertain as these factors continue to influence prices and supply dynamics.

Attribute content to: Emily Tan, MLA Market Information Analyst.

 

BEIJING/MADRID, April 11 (Reuters) – China has signed two agricultural trade protocols with Spain covering pork and cherries as the world’s second largest economy seeks to strengthen ties with the European Union amidst an escalating trade war with the United States. The deal was announced on Friday by Spanish Prime Minister Pedro Sanchez in Beijing.

This agreement follows U.S. President Donald Trump’s decision to increase tariffs on Chinese imports to 145%, which led China to raise its own duties on U.S. goods to 125%. The National Association of Spanish Meat Industries (ANICE) welcomed the deal, stating, “In a context of enormous international commercial turbulence, derived from the tariff crisis, we welcome with optimism and hope this new gesture from the Asian giant, which is opening up new options for the supply of pork products.”

The new trade protocols include the export of pork stomachs, a product widely consumed in China but not previously authorised for import. Daniel de Miguel, international manager of Interporc, Spain’s pork producers association, highlighted the significance of this inclusion.

Analysts view the deal as a potential indication that Beijing might ease its anti-dumping inquiry into EU pork, which was launched last year in retaliation for EU tariffs on Chinese electric vehicles. This investigation could severely impact countries like Spain, the Netherlands, and Denmark, as a large portion of the EU’s pork exports to China consist of pig ears, noses, feet, and offal—products that are not commonly consumed in Europe but are popular in China.

“This is great news for Spain’s pig farmers,” said Even Rogers Pay, an agriculture analyst at Trivium China. “It suggests regulators may delay or ease the pork investigation, as they recently did with brandy.”

The agreement between China and Spain is seen as a strategic move to bolster economic ties with the EU and mitigate the impact of the ongoing trade tensions with the U.S.

Original story: Reuters

Quotes

Base quotes from the major processors have been falling for a number of weeks, however the week ending 22nd of March saw quotes increase, with €8.70/kg – €8.80/kg for well finished lambs (+QA bonus) on offer. Sellers trading at the higher end of the market are securing €9.10/kg to €9.20/kg also having more success in negotiating higher carcass weight allowances up to 23.5kg.

Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade all of 2024.

Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions.

The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies.

Prices

Reported deadweight price for week ending the 22nd  of March decreased by €0.10/kg to €8.47/kg, reflective of the continuing second week consecutive price drops recorded in average prices from the major lamb processors. In the corresponding week in 2024 the reported deadweight price was €8.50/kg.

The deadweight trade has slightly improved across the UK regions for week ending 8th of March. Reported lamb prices in mainland GB were the equivalent of €8.79/kg  last week (+4c/kg) in Northern Ireland there was a larger decrease in the trade to be €8.06/kg (-30c/kg). Week ending 15th and 22nd of March NI and GB prices are not yet published.

Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to  longer term.

Prices this week took a slight fall and are at €4.48/kg and €4.48/kg for Australia and New Zealand.

Throughput

There was a decrease in the total sheep kill in DAFM approved plants last week to 37,117 head, compared to 53,922 the same week in 2024.

Tighter supplies has been a feature of the 2025 lamb season to date with a smaller lamb crop and a difficult lambing impacting lamb availability for processing. Total TYD slaughter is down 22% on 2024 to total 479,860 head.

Bord Bia

Throughput

There were 31,590 cattle processed in DAFM approved plants during the week ending March 22nd 2025, taking throughput for the year to date to 430,397 head. This is a 1,513 head or 3% increase on the corresponding period in 2024 when a total of 430,700 cattle were processed.

There have been 323,157 prime cattle processed in the first 12 weeks of 2025, a 2.6% increase from the same period last year (+16,714 head). Within this however there has been a change in the slaughter mix with a notable decline in the young bull kill early in 2025, which has this week evened out to similar level as this week in 2024.

Steer and Heifer throughput has dropped slightly in comparison to 2024. Cow throughput has remained strong with 99,507 cows processed so far this year, up by 13% from 2024 levels.

Prices

Quotes from major processors have continued to trend upward and this has been reflected in a balance between supply and demand currently in favour of producers. Base quotes this week are in the region of €7.30-€7.40/kg for steers while starting quotes for heifers are around the same.

The trade for the smaller numbers of young bulls on offer remains steady with €7.30-€7.40/kg also available for U grading animals under 24 months of age, with flat prices as high as €7.50/kg available for R grading bulls.

Well fleshed O grading cows are being quoted at €6.80/kg with €7.00/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.

For the week ending March 22nd 2025, the average price paid by Irish beef processors for R3 steers increased by 32c/kg to €7.12/kg.

This was 195c/kg ahead of the corresponding week in 2024. The reported R3 heifer during the week ending March 22nd 2025 increased by 16c/kg to €7.15/kg, placing it 193c/kg ahead of the corresponding week in 2024.

Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

European young bull prices have held strong for all of 2025 so far. The average reported price for R3 grading young bulls was €6.31/kg (excluding VAT) for the week ending March 22nd 2025. This is 125c/kg ahead of the same week last year when the average R3 price was €5.06/kg.

Tighter cattle supplies and firm demand have meant deadweight beef prices in the UK have remained strong, this week the average R3 steer price increasing to be €8.01/kg for the week ending March 22nd 2025.

Bord Bia

Brazilian meatpacking giant JBS has announced a $100 million investment to build two meat processing factories in Vietnam, marking a strategic move to expand its presence in Southeast Asia and strengthen its global market reach.

Key Project Details:

• First Factory: Located in the Nam Dinh Vu Industrial Park in Haiphong (northern Vietnam), this facility will include a logistics centre, along with storage, pre-processing, cutting, and packaging capabilities. It will primarily process beef, pork, and poultry using raw materials imported from Brazil, aimed at supplying both the domestic market and regional customers.
• Second Factory: Planned for southern Vietnam, construction is expected to begin two years after the first facility becomes operational. It will offer similar infrastructure and capabilities.

The project was formalised through a memorandum of understanding with the Vietnamese government during Brazilian President Luiz Inácio Lula da Silva’s recent state visit to Vietnam.

Renato Costa, president of JBS subsidiary Friboi, stated that the factories are not just about increasing capacity but also about creating value for the local economy. The investment aims to generate skilled jobs, enhance food security across Southeast Asia, and support the transfer of knowledge and technology through training programmes for Vietnamese workers.

The initiative is expected to create around 500 jobs and will contribute to developing Vietnam’s food production and export capabilities.

Original story: Vietnam Investment Review 

Abattoirs Hit by FSA Meat Charge Rise

The Food Standards Agency (FSA) has announced a significant increase in meat inspection charges, set to take effect from 1 April 2025. This uplift is expected to add further financial strain on small and medium-sized abattoirs across the UK.

The hourly rates for official veterinarians (OVs) and meat hygiene inspectors (MHIs) visiting abattoirs will rise by 17.7% and 11.3%, respectively. The new rates will be £65.90 per hour for OVs and £43.20 per hour for MHIs. These charges apply to various approved meat premises, including slaughterhouses, cutting plants, and on-farm slaughtering facilities.

The FSA’s decision has sparked concern among industry leaders, who warn that the increased costs could lead to more abattoir closures, particularly affecting rural areas. The National Farmers’ Union (NFU) has called for more support for local abattoirs, highlighting the risk of increased journey times for animals and higher operational costs.

The Association of Independent Meat Suppliers (AIMS) has also voiced strong opposition, describing the fee hikes as an “unjustified gouge” on the sector. AIMS has challenged the legitimacy of the charges, arguing that traditional meat inspection delivers no discernible food safety benefits.

With the number of abattoirs in the UK already in decline, the new charges could exacerbate the situation, reducing competition and consumer choice. Industry experts are urging the FSA to reconsider the fee increases and explore structural reforms to support the struggling meat industry.

Original story: NFU Online 

Import ban of cattle, pigs, sheep, and deer from Austria to protect farmers

The government has stepped up measures to prevent the spread of foot and mouth disease (FMD), following a further confirmed case in Hungary, close to the Austrian border.

Due to the proximity of the new Hungarian case to the Austrian border, the decision has been made to suspend the commercial import from Austria of cattle, pigs, sheep, goats, wild ruminants and porcines (including deer and wild boar), and their untreated products such as fresh meat and dairy.

The UK Government had already taken action to suspend the commercial import of these products from Slovakia, Hungary and Germany.

Action is already underway with local authorities and traders to address possible risks from goods on the way to GB. Such goods must be pre-notified and wider border systems in place will prevent consignments entering GB.

In addition, travellers can no longer bring meat, meat products, milk and dairy products, certain composite products and animal by products of pigs and ruminants (including non-domestic species), or hay or straw, from Austria.

This is in addition to the action already taken by the UK Government to prevent the personal import of these products from Germany, Hungary and Slovakia to Great Britain.

The UK Chief Veterinary Officer is urging livestock keepers to remain vigilant to the clinical signs of FMD following the recent outbreaks in Hungary and Germany. There are no cases in the UK currently.

FMD poses no risk to human or food safety, but is a highly contagious viral disease of cattle, sheep, pigs and other cloven-hoofed animals such as wild boar, deer, llamas and alpacas. Livestock keepers should therefore be absolutely rigorous about their biosecurity.

FMD causes significant economic losses due to production losses in the affected animals as well as loss of access to foreign markets for animals, meat and milk for affected countries.

Gov.UK

Avian Influenza Detected in Sheep in Yorkshire: A First for the UK

The UK’s Chief Veterinary Officer has confirmed a case of avian influenza (H5N1) in a single sheep in Yorkshire. This case was identified following routine surveillance of livestock co-located on a premises where avian influenza had previously been confirmed in captive birds. The infected sheep was humanely culled to enable extensive testing, and further testing of the remaining flock revealed no additional cases of the virus.

This marks the first time that avian influenza has been reported in a sheep, although similar cases have been detected in livestock in other countries. Despite this, there is no evidence to suggest an increased risk to the UK’s livestock population. The UK Chief Veterinary Officer is urging all livestock keepers to remain vigilant and maintain good biosecurity to prevent the spread of the disease.

The UK Health Security Agency (UKHSA) has stated that avian influenza is primarily a disease of birds and poses a very low risk to public health. The Food Standards Agency has also reassured the public that properly cooked poultry and poultry products, including eggs, remain safe to eat.

Original story: Gov.uk

 

MLA