Australian Cattle and Sheep Market update

Key points:

Restocker demand across sheep and cattle returned, with prices rising despite more yardings.
Quality young restocker lambs lifted above 900¢/kg in Wagga.
Sheep slaughter reached the highest number since 2006 due to price-driven demand.

Cattle market

The cattle market saw a slight but positive movement across all indicators as yardings eased from 4,784 head to 55,545 head.

Rainfall across south-east Queensland impacted yardings, however, may have also lifted confidence as the Restocker Yearling Heifer price lifted 13¢ to 275¢/kg liveweight (lwt). Prices and yardings were supported by the monthly weaner sales in Blackall, making up over 40% of yardings. Quality and demand through NSW yards resulted in the state’s indicator average reaching almost 30¢ above national prices at 303¢/kg lwt.

How Does the Australian Red Meat Industry Compare Globally?

Processor Cow prices have flattened out, with throughput down 774 head to 6,864 head over the week. The indicator price lifted 4¢ to 269¢/kg carcase weight (cwt). The elevated markets in Queensland and NSW prompted strength in the indicator; however, the southern states of Victoria, SA and Tasmania have seen consecutive weeks of price easing, likely due to quality being impacted by feed availability.

Sheep market

The sheep and lamb prices were varied this week. Yardings were buoyed by market confidence of the previous week, with over 345,000 sheep and lambs entering saleyards, a 6% lift on the previous week. Sheep numbers remained stable, with the main lift seen in lambs which were up 11% to 233,183, as spring lambs continue to lift. Wagga yarded significant numbers, at 70,000 head with stable prices.

Australia reaches trade deal with UAE to boost agriculture exports

There was a strong demand for restocker animals. National Restocker Indicator throughput lifted 15,823 head to 50,392 head. As traders play into the growing market, a price lift was also seen, with an increase of 31¢ to 740¢/kg cwt. Making up a fifth of the indicator, Wagga saw average prices tipping 830¢/kg cwt and some young light restockers tipping 900¢/kg.

NSW continued to fare well in the markets. Improved quality and returned demand were seen in Victoria due to more buyers present, resulting in prices lifting across all indicators, providing some recovery in prices.

Dwindling supply of heavy export lambs lifted competition in some sales. The National Heavy Lamb Indicator price fell back 15¢ to 846¢/kg cwt, though maintained a decent 36¢ premium to trade weights.

Slaughter

Week ending 25 October 2024

Cattle slaughter lifted slightly after the impressive results seen last week. National figures rose 1,531 head to a total processing of 145,337, the largest kill week since January 2020 and more in line with 2019 weekly averages. Year-to-date, cattle slaughter is tracking 14% above 2023 rates. Most states remained relatively stable week-on-week, with numbers shifting between 0–7%. Queensland maintained throughput, up 1%, once again reaching the state’s largest slaughter since late 2019 at 77,467. There were increases in NSW (34,958), and SA (3,566) and slight reductions seen across Tasmania (4,303), Victoria (22,318), and WA (2,725), with national figures remaining stable.

The Rise of Australian Beef Exports as US Cattle Numbers Decline

After a period of public holidays and scheduled maintenance closures, all reporting plants were reopened and operated for the whole week. Both sheep and lamb figures saw some movement. Combines sheep and lamb slaughter lifted 11% to 688,902 head, the largest kill week since May. Due to a plant coming back online, NSW numbers had the most considerable lift. Lamb slaughter lifted 56% in the state, while sheep slaughter was up 24% week-on-week.

Prices have motivated processors to favour mutton over lamb, causing a 14% week-on-week lift in sheep slaughter to 246,524, the largest sheep slaughter since 2006. NSW matched this record, processing just under 100,000 head for their largest week since 2006. Tasmania doubled its sheep throughput, up 102% to over 4,000 head, SA up 21% to 24,781, and both Victoria and WA up again for 70,272 and 47,741, respectively.

The proportion of sheep to total has lifted to 36%, which is well above long-term and short-term averages as processors continue to capitalise on the price differences.

Attribute to: Erin Lukey, MLA Senior Market Information Analyst

MLA

The Latest Trends in the Australian Lamb Market

Sysco Acquires Campbell’s Prime Meat in Strategic UK Expansion

Sysco, the global foodservice provider, has acquired Campbell’s Prime Meat in a strategic move to expand its footprint in the UK. This acquisition signals Sysco’s commitment to strengthening its supply chain and enhancing product offerings to UK customers, particularly within the hospitality, catering, and retail sectors[1].

Based in Linlithgow, Campbell’s Prime Meat serves a broad client base across Scotland and Northern England. The acquisition will allow Sysco to leverage Campbell’s local expertise, ensuring consistent quality and service for which Campbell’s has become renowned, while also tapping into Sysco’s extensive global network[1].

Tim Adams, CEO of Sysco UK, expressed his excitement about the acquisition, stating, “We are thrilled to welcome Campbell’s Prime Meat to the Sysco family. This acquisition not only strengthens our supply chain but also reflects our commitment to local sourcing, quality, and customer service. Campbell’s Prime Meat has a long-standing reputation for excellence, and we’re excited to build on that foundation to better serve our customers across the UK”[1].

James Campbell, CEO of Campbell’s Prime Meat, commented on the acquisition: “Joining Sysco is a tremendous opportunity for Campbell’s Prime Meat. With Sysco’s scale and resources, we can bring our products to a larger audience and continue to support our local suppliers. This acquisition also offers a growth platform for our employees and an ability to invest further in the communities we serve”[1].

The deal marks Sysco’s continued investment in the UK foodservice sector and demonstrates its ambition to be the leading supplier of choice, with a focus on sustainable and locally sourced products. The acquisition also adds to Sysco’s growing portfolio of partnerships and acquisitions across Europe, positioning it as a prominent competitor in the UK’s foodservice industry[1].

References

[1] Sysco Announces Acquisition of Campbell’s Prime Meat

Minerva Foods Completes Acquisition of Marfrig Assets

Minerva Foods Finalises Acquisition of Marfrig Global Foods’ Key Assets

Minerva Foods has successfully completed its acquisition of several key assets from Marfrig Global Foods, solidifying its position as a major player in the meat processing industry. This acquisition, which was first announced earlier this year, has now received final regulatory approvals and marks a significant milestone in Minerva’s expansion strategy across South America and beyond.

The acquisition includes processing plants and distribution centres in various strategic locations, thereby strengthening Minerva’s presence in core markets such as Brazil, Argentina, and Uruguay. Fernando Galletti de Queiroz, CEO of Minerva Foods, described the acquisition as a pivotal step in the company’s long-term strategy. He stated, “By integrating Marfrig’s assets, we can enhance our supply capabilities, streamline our operations, and better serve our clients worldwide with premium products.”

Minerva, already a leading exporter of fresh meat across South America, expects the acquisition to bolster its export capabilities to high-demand markets in Asia, Europe, and the Middle East. The company also highlighted that the transaction aligns with its sustainability objectives, as the additional facilities will enable Minerva to implement environmentally friendly practices at scale, potentially reducing emissions and waste through improved logistical integration.

The acquisition is anticipated to positively impact Minerva’s revenue in the coming fiscal year, as the company leverages synergies across its expanded network of assets. Industry analysts view this move as a proactive approach to meeting increased global protein demands while addressing sustainability, a growing priority within the sector.

The Minerva-Marfrig deal is one of the latest in a series of mergers and acquisitions reshaping the meat processing industry. It underscores an era of consolidation and strategic partnerships as firms seek to streamline operations and fortify market positions amid shifting consumer trends and supply chain challenges.

New Zealand’s Silver Fern Aims to Strengthen Presence in China

New Zealand’s largest red meat exporter, Silver Fern Farms, is gearing up for the upcoming China International Import Expo (CIIE) in Shanghai, which will take place from November 5-10. This marks the company’s seventh consecutive attendance at the event. Silver Fern Farms’ Chief Executive, Dan Boulton, highlighted the importance of the expo in enhancing the company’s understanding of the China market and deepening cooperation with local partners[1].

At the CIIE, Silver Fern Farms will showcase its premium red meat products, including upgraded reserve products that cater to both Western cooking styles and Chinese culinary habits. Boulton emphasized the diversity and richness of China’s traditional recipes and culinary techniques, which span thousands of years[1].

Silver Fern Farms has been present in China for nearly 30 years, with the Chinese market being a key growth engine for the company. This year, the company has expanded its retail channels to cover China’s central and western regions, supplying high-end grass-fed beef and lamb products to local supermarket stores[1].

[1]: Silver Fern Farms at China International Import Expo 2024

References

[1] Connect with Silver Fern Farms Limited at China International Import …

Xinhua

Irish Cattle Trade & Prices Update: Throughput and Trends

Throughput

There were 40,777 cattle processed in DAFM approved plants last week, an uplift of just over 430 head from the previous week. This uplift is primarily due to an increase in the cow kill when compared to the previous week.

Prime cattle throughput YTD is currently on par with the same period last year at 1,051,293 head although a notable tightening in prime cattle availability is expected as we move into the final quarter of the year. A contraction in cattle numbers on the ground and a lively export trade have contributed to this outlook with numbers expected to remain tight for much of 2025.

Average carcase weights also continue to trend below previous years with the combination of a challenging grass growing season and a growing dairy influence on the prime cattle kill playing a role in the decline. The downward trend in average carcase weights is expected to continue in the short to medium term with calf registrations to suckler cows continuing to decline, while the number of beef sired calves produced from the dairy herd continues to increase.

Prices

There was a lift in the steady base quotes at Irish meat plants this week in response to tighter supplies and an expected increase in retail and foodservice demand for the Christmas period. In general, producers were offered a base price of €5.10/kg for steers with reports of up to €5.30/kg available. Starting quotes for heifers are in the region of €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 €5.35/kg and €5.40/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O+ grading suckler cows being offered prices of €4.55-4.65/kg, while prices for O grading dairy cows generally range from €4.65-4.75/kg. 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 19th October 2024, the average price paid by Irish beef processors for R3 increased slightly by 2c/kg to be at €5.07/kg. This remained 49c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.58/kg.

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:

Across the EU, the average reported price for R3 grading young bulls was €5.35/kg (excluding VAT) for the week ending 19th October, 2024. This is 46c higher than week 42 of last year when prices averaged €4.89/kg for this category.

In the UK, tighter cattle supplies and firm demand have meant deadweight beef prices have continued to firm. This week the average UK R3 steer price increased by 4c/kg to €6.13/kg.

Bord Bia

Irish Sheep Trade & Prices: Uplift in Base Quotes

Quotes

Base quotes from the major processors have improved this week with €7.30/kg – €7.40 for well finished lambs (+QA bonus) on offer, with tightening lamb numbers contributing to this uplift. The improvements in the trade are also being supported by stable demand from both the domestic and export markets.

Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest production and forecast figures indicating a contraction in flock sizes and lamb availability for slaughter.

Prices

Last weeks reported deadweight price increased by 8c/kg to €7.31/kg, reflective of the improvement in quoted prices from the major lamb processors in the last few weeks. In the corresponding week in 2023 the reported deadweight price was €6.23/kg. The deadweight trade has also improved across the UK regions.

Reported spring lamb prices in mainland GB were the equivalent of €7.43/kg last week (+5c/kg) while in Northern Ireland there was a notable improvement in the trade to €7.15/kg (+14c/kg). Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI has contributed to this firming in the trade.

Southern Hemisphere prices remain well below European prices however in more recent months there has been a narrowing in the price differential with the EU. The lead time on product shipments and this recent improvement in deadweight prices should impact their competitiveness on EU markets in the short to medium term.

Prices this week slipped slightly and are at €5.01/kg and €4.36/kg for Australia and New Zealand respectively (decreasing by 3c/kg and 1c/kg). Thhhis decline follows on from a 10 week period in which week on week increases were recorded in deadweight prices.

Throughput

There was a notoble decrease in the total sheep kill in DAFM approved plants last week to 49,526 head, compared to 57,499 the same week in 2023. Tighter supplies has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.

Total TYD slaughter is down 9% on 2023 to total 2,096,153 head.

Bord Bia

Rising Crisis: Government Urged to Address Illegal Meat Imports

The government is under pressure to stop illegal meat being smuggled into the UK, amid warnings of a “foot-and-mouth” level crisis for British farmers.

The amount of meat seized by Border Force officials has doubled in a year, according to data obtained by BBC News.

The data suggests more meat is entering the country in fewer vehicles, which experts say indicates a rise in organised crime.

Meat imports classed as illegal have often not gone through checks to confirm they are disease-free and conform to UK health standards.

An outbreak of the highly contagious African swine fever has been spreading across Europe’s pig herds since last summer.

Farmers and MPs have called on the chancellor to fund more stringent border controls in next week’s Budget to prevent the disease from entering the UK.

The President of the National Farmers’ Union, Tom Bradshaw, told the BBC that he was not confident the government would introduce the measures he believed were necessary.

“We’ve got a line in the Labour manifesto that food security is national security. Now at the moment there’s a very real risk that they are just words on a piece of paper rather than meaningful policy,” he said.

Jack Fenwick | BBC News

Amazon Deforestation: Brazil’s Actions Against Meat Packers

São Paulo, Brazil – In a significant environmental enforcement move, Brazilian authorities have imposed multimillion-pound fines on several of the country’s largest meat-packing companies for purchasing cattle from farms linked to illegal Amazon deforestation.

This action forms part of Brazil’s intensified commitment to combat illegal land clearance and protect the Amazon, often called the “lungs of the Earth.” The fines, issued by the federal environmental agency IBAMA, followed a year-long investigation tracking the origins of cattle sold to major meat processors.

The investigation revealed that cattle were being raised on illegally deforested lands before being moved to legitimate farms—commonly known as “laundering”—to evade detection by authorities. This practice has been highlighted as a major driver of deforestation, responsible for the destruction of large swathes of the Amazon rainforest each year.

Brazil’s Ministry of the Environment confirmed fines exceeding £10 million against leading companies, marking one of the largest crackdowns in recent years. Ricardo Salles, Brazil’s Environment Minister, stated, “This should serve as a stark warning to the industry. We will not tolerate any activity that fuels illegal deforestation and undermines our national and global environmental commitments.”

Illegal Cattle Laundering in the Amazon

The Brazilian beef industry is among the largest in the world, and demand for Amazon land continues to surge. But rapid expansion has had a devastating environmental toll, with roughly 80% of deforested areas in the Amazon converted into pastureland for cattle. Environmental groups argue that lax monitoring, coupled with limited enforcement, has encouraged illegal land seizures and cattle laundering, which are difficult to trace along the complex supply chains that deliver meat from remote Amazon farms to international markets.

In recent years, global pressure on Brazil to halt Amazon deforestation has mounted, particularly from European and North American markets, where consumers increasingly demand proof that their meat purchases are not contributing to environmental harm. To address these concerns, many large Brazilian meat packers, including JBS, Marfrig, and Minerva, have made sustainability pledges to end deforestation in their supply chains. However, enforcement is an ongoing challenge.

Repercussions for the Meat Industry

The recent fines underscore the financial risk companies face if they fail to adhere to sustainability commitments. For some, the penalties come as a wake-up call. Several major supermarket chains and food suppliers worldwide have already responded by temporarily suspending purchases from the fined companies, citing the need for stricter compliance assurances. One UK-based retailer stated, “We are committed to ethical sourcing and are in discussions with our suppliers to ensure that none of our products contribute to deforestation.”

Environmental advocates are optimistic that the fines will catalyse stronger measures across the beef industry, encouraging companies to improve their tracking systems and better monitor the origins of cattle in their supply chains. Some activists, however, argue that fines alone are insufficient, urging Brazil’s government to implement real-time satellite monitoring and stricter penalties to deter illegal deforestation.

A Global Impact on Consumer Choices

The crackdown may further impact the global meat industry as consumers grow more conscious of environmental issues linked to food production. A 2023 study found that 55% of UK consumers are now more likely to avoid products linked to environmental destruction, with sustainably-sourced alternatives steadily gaining popularity.

As Brazil steps up its efforts to safeguard the Amazon, the message to the global meat market is clear: sustainable practices are no longer optional, and the stakes—for companies and consumers alike—are higher than ever.

FSA Appoints Two Businesses for Meat Inspections in the UK

The Food Standards Agency (FSA) has announced the appointment of two businesses to provide inspectors and veterinary professionals for future meat inspections in the UK.

The two companies, Eville & Jones and HallMark Veterinary & Compliance Services, have been awarded contracts to supply official veterinarians and meat hygiene inspectors. They will oversee the safety, hygiene, and welfare standards within meat plants.

An FSA spokesperson said:
“Meat inspection is a vital part of safeguarding food safety, and these appointments ensure that we have the necessary expertise to continue protecting consumers while supporting industry standards.”

This initiative is particularly important as the UK food industry adapts to evolving demands and challenges in food safety. By ensuring a robust inspection framework, the FSA aims to continue upholding the country’s strong reputation for safe and high-quality meat products.

FSA.

The Latest Trends in the Australian Lamb Market

Key points:

Lamb prices have bounced back to late 2021 and early 2022 levels.
Producer cautiousness will likely impact market prices.
Seasonal conditions have impacted quality and timing of new season lambs being sold.

The spring flush is in full swing, with more new-season lambs hitting the market. However, after a turbulent 18-month period in the livestock market, producers are increasingly cautious about their stocking decisions.

Over the third quarter, lamb prices began to rise in June, peaking in July as supply slowed. On average, prices increased by 12–25% during the quarter and have since stabilised at around 800 to 820¢/kg carcase weight (cwt) for the Heavy and Trade Lamb Indicators. Higher-quality lambs have commanded the best prices, while lower-quality stock has experienced less demand.

This has led buyers to focus on heavy lambs, pushing prices close to $300 at Wagga. Although prices have returned to late 2021 and early 2022 levels, it is unlikely they will continue to reach new highs. Mutton prices have dropped by 24% since early July, potentially driven by the early turn-off of older breeding ewes.

A stellar season in NSW has resulted in more new-season lambs coming to market earlier than in Victoria. The market witnessed a 20–40% increase in lamb supply compared to 2023 during the third quarter. NSW lamb yardings increased by almost 2% compared to last year as new-season lambs began arriving by mid-August. In contrast, Victorian yardings in September were down by 5% compared to last year.

The seasonal conditions in Victorian have resulted in lighter new-season lambs and a higher number of lambs under 22kg cwt. In early September, there were reports of ewes being sold earlier in the hopes of keeping younger lambs to sell in early spring. Better-quality, heavier lambs are becoming scarce at Victorian saleyards.

It is a tale of two states, with NSW experiencing one of its strongest seasons, marked by a higher number of heavy lambs, while Victorian saleyards have seen more lighter lambs and older ewes being sold.

Attribute content to Emily Tan, MLA Market Information Analyst

MLA

How Does the Australian Red Meat Industry Compare Globally?

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