Quotes: Base quotes for hoggets from the major processors have tightened this week with base quotes of €9.30-€9.50/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of €9.55-9.65/kg (+QA bonus) available.

The strong deadweight trade at the minute is being driven by the tighter supplies of suitable hoggets for processing and spring lambs have been slow to come forward also.

The tight supply situation has not been confined to Ireland, with hogget throughput in the UK so far this year operating five per cent behind 2023 levels with reports of significant numbers of ewe lambs previously set aside for breeding now being processed. The latest supply forecast for the EU has indicated a two per cent decline in throughput during the first half of 2024 which equates to a 580,000 head reduction in the sheep kill. Tighter supplies are expected until the 2024 lamb crop starts to come forward for processing in significant numbers.

 

Demand for lamb on both the domestic and export markets has shown some signs of recovery as indicated by Kantar figures and Bord Bia’s own market insights. However, while consideration for lamb has recorded some improvement in recent months lamb continues to be the most exposed to shifts in consumer buying habits as the highest priced protein.

 

Prices: Last weeks reported price decreased to €9.16/kg, an reduction of 11c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.48/kg. The deadweight trade has also remained firm in the UK regions with reported spring lamb prices the equivalent of €9.78/kg (-8c/kg) in mainland GB last week while the reported price in Northern Ireland was €9.60/kg (+39c/kg) for w/e May 19th 2024. Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in. Deadweight lamb prices in Australia and New Zealand were the equivalent of €4.11/kg and €3.52/kg respectively last week.

 

Throughput: The total sheep kill in DAFM approved plants for week ending May 19th 2024 was 40,730 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 960,701 head, 10% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 818,302 head, operating 9% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 12,126 head (-12 %)

Bord Bia 

Cattle & Beef

Throughput: There were 31,984 cattle processed in DAFM approved plants during the week ending May 19th 2024, taking throughput for the year to date to 692,034 head. This is a 18,573 head or 3% increase on the corresponding period in 2023 when a total of 673,461 cattle were processed. There have been 494,448  prime cattle processed in the first 20 weeks of 2024, a 3% increase from the same period last year (+11,520 head). Cow throughput has remained strong with 167,808 cows processed so far this year, a notable increase of 18,817 head (+10%)

Prices: Base quotes this week are in the region of €5.00/kg for steers while starting quotes for heifers are around €5.10/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.20-5.30/kg available for R grading animals under 24 months of age.

The cow trade has remained solid. Well fleshed O grading cows are being quoted at €4.50 with €4.70-4.90c/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 May 19th 2024, the average price paid by Irish beef processors for R3 decreased by 6c/kg to be €5.16/kg. This was 7c/kg behind the corresponding week in 2023 when the R3 steer price was €5.23/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:

European young bull prices have held relatively stable in the early weeks of 2024. The average reported price for R3 grading young bulls was €5.02/kg (excluding VAT) for the week ending May 18th 2024. This is the same as Week 20 last year. Tighter cattle supplies and firm demand have meant deadweight beef prices in the UK have remained strong. This week the average R3 steer price decreased slightly by 2c/kg to be €5.70/kg (equivalent to £4.85/kg).

 

Bord Bia 

Quotes: Base quotes for hoggets from the major processors have tightened this week with base quotes of €9.30-€9.40/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of €9.55-9.65/kg (+QA bonus) available.

The strong deadweight trade at the minute is being driven by the tighter supplies of suitable hoggets for processing and spring lambs have been slow to come forward also.

 

The tight supply situation has not been confined to Ireland, with hogget throughput in the UK so far this year operating five per cent behind 2023 levels with reports of significant numbers of ewe lambs previously set aside for breeding now being processed. The latest supply forecast for the EU has indicated a two per cent decline in throughput during the first half of 2024 which equates to a 580,000 head reduction in the sheep kill. Tighter supplies are expected until the 2024 lamb crop starts to come forward for processing in significant numbers.

 

Demand for lamb on both the domestic and export markets has shown some signs of recovery as indicated by Kantar figures and Bord Bia’s own market insights. However, while consideration for lamb has recorded some improvement in recent months lamb continues to be the most exposed to shifts in consumer buying habits as the highest priced protein.

 

Prices: Last weeks reported price decreased to €9.05/kg, an reduction of 23c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.51/kg. The deadweight trade has also remained firm in the UK regions with reported spring lamb prices the equivalent of €10.57/kg (-8c/kg) in mainland GB last week while the reported price in Northern Ireland was €9.21/kg (-29c/kg) for w/e May 12th 2024. Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in. Deadweight lamb prices in Australia and New Zealand were the equivalent of €4.09/kg and €3.52/kg respectively last week, with the New Zealand price particularly taking a sharp increase of 10c/kg.

 

Throughput: The total sheep kill in DAFM approved plants for week ending May 12th 2024 was 41258 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 920,033 head, 10% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 795,287 head, operating 9% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 11,660 head (-12 %) to 88,932 head. Spring lambs have started to increase for processing  with 35,749 processed so far this year.

Bord Bia 

A new ban on exporting live animals came into law today (Monday 20 May) as the Animal Welfare (Livestock Exports) Act received Royal Assent, capitalising on a post-Brexit freedoms and bolstering the UK’s position as a world leader in animal welfare standards.

The legislation delivers on a key manifesto commitment to ban the export of live animals including cattle, sheep, and pigs for slaughter and fattening from Great Britain.

It is only possible now the UK has left the European Union, and will stop animals enduring stress, exhaustion and injury on long and unnecessary export journeys.

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See also:

• New legislation banning live exports from Britain moves to Lords

• Government’s live export ban ‘bad news’ for the home market

• King’s Speech: Government commits to end live animal exports

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The Act will ensure that animals are slaughtered domestically in high welfare UK slaughterhouses, reinforcing our position as a nation of animal lovers and a world leader on animal welfare, boosting the value of British meat and helping to grow the economy.

Environment Secretary Steve Barclay said: “We are proud to have some of the highest animal welfare standards in the world.

“Our new Act makes use of post-Brexit freedoms to deliver one of our manifesto commitments and strengthen these standards even further by preventing the export of live animals for slaughter and fattening, which we know causes animals unnecessary stress and injury.”

Gov.uk

 

The latest livestock products data released by the Australian Bureau of Statistics (ABS) shows that last quarter, Australia had the highest lamb slaughter on record at 6,935,700 head. 

The data, analysed by Meat & Livestock Australia (MLA), also shows that the January-March quarter also broke production records for lamb at 167,263 tonnes, up 8% on last quarter and 48% last year.

MLA’s Senior Market Information Analyst, Erin Lukey, said that the higher levels of production and recorded carcase weights are reflective of conditions that occurred towards the end of last year.

“Across the board we saw carcase weights for lamb lift 5% quarter-to quarter to 24kg, which equates to the five-year average. This return is after the three-year lows recorded last quarter,” Ms Lukey said.

“Lamb carcase weights lifted across all states according to the ABS. This is partly attributable to the end of season turnoff of older lambs, and improved weather conditions recorded in the latter months of 2023, particularly in New South Wales and Victoria.”

Victoria had its second highest lamb slaughter on record, only following last quarter’s record. It also had its highest lamb production for the second year in a row, while New South Wales recorded an 18% increase in slaughter and 25% jump in production.

Western Australia also had its second highest lamb production quarter on record, as well as its second highest quarter for slaughter.

National mutton slaughter was also at its highest since December 2019 at 2,784,000 head. However, carcase weights on average across the country fell 5% to 24.9kg, with the biggest drop felt in Western Australia where weights eased 9% to 24.5kg.

The value of sheepmeat slaughtered increased 41% quarter-to quarter to $1.257 billion, which was the largest since December 2021. This equates to $129 /head per animal, which was the largest since Q2 2023.

 

Meat & Livestock Australia

April 2024 was a historic milestone in beef exports for Brazil having shipped 236,842 tons, generating revenues totaling US$ 1.043 billion, points out Agrilink. Leading the list was China, trailed closely by the United Arab Emirates and Hong Kong, which experienced a substantial 38.9% surge in imports compared to March 2024, driven by increased demand for beef offal.

Year-to-date statistics reveal a robust performance in Brazilian beef exports, with shipments reaching 835,328 tons, reflecting a 37,2% increase compared to the corresponding period in 2023. Revenue also witnessed a substantial rise of 29.5%, from US$ 2.8 billion to US$ 3.68 billion. Fresh meat accounted for the lion’s share with 88% of total overseas sales, followed by offal at 7.09%, and processed meat at 3.7%.

Antônio Jorge Camardelli, Executive President of the Brazilian Association of Meat Exporting Industries (Abiec), highlighted the continued robust demand from China, which consistently imports an average of 95 thousand tons per month, reaffirming its status as a key partner for Brazil. However, Camardelli also underlined the prominence of other markets contributing to the year’s increased export volumes.

Throughout 2024, the United Arab Emirates showed remarkable growth in beef purchases, tripling its acquisitions compared to 2023, with shipments totaling 64,787 tons in the first four months of the year, with revenues of US$ 298.2 million. Similarly, exports to Algeria amounted to 20,287 tons, and US$ 92.7 million in revenue, while shipments to the Philippines stood at 19,411 tons, and US$ 68.03 million. Brazilian farmers and meat processors are confident of further burgeoning market opportunities in coming months.

MercoPress

Cattle & Beef

Throughput: There were 30,743 cattle processed in DAFM approved plants during the week ending May 12th 2024, taking throughput for the year to date to 660,140 head. This is a 18,633  head or 3% increase on the corresponding period in 2023 when a total of 641,507 cattle were processed. There have been 470,841  prime cattle processed in the first 19 weeks of 2024, a 3% increase from the same period last year (+11,950 head). Cow throughput has remained strong with 160,852 cows processed so far this year, a notable increase of 19,053 head (+10%)

Prices: Prime cattle supplies have steadied, and this has been reflected in a steadying of the base quotes from the major processors, with base quotes increasing last week. Base quotes this week are in the region of €5.15/kg for steers while starting quotes for heifers are around €5.20/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.30-5.40/kg available for R grading animals under 24 months of age.

The cow trade has remained solid, particularly this week despite the strong throughput in recent weeks. Well fleshed O grading cows are being quoted at €4.60 with €4.70-4.80c/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.

For the week ending May 12th 2024, the average price paid by Irish beef processors for R3 increased by 1c/kg to be €5.22/kg. This was 6c/kg behind the corresponding week in 2023 when the R3 steer price was €5.28/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:

European young bull prices have held relatively stable in the early weeks of 2024. The average reported price for R3 grading young bulls was €5.01/kg (excluding VAT) for the week ending May12th 2024. This is the same as Week 19 last year. Tighter cattle supplies and firm demand have meant deadweight beef prices in the UK have remained strong. This week the average R3 steer price increased 4c/kg to be €5.72/kg (equivalent to £4.91/kg).

Bord Bia 

Faarea Masud | BBC News

Beef

Beef exports lifted 46% from April 2023 to 113,431 tonnes. This is the largest beef export volume for April since 2015, and the second highest on record.

Exports lifted in most major exports markets, with the United States remaining the largest beef market with exports rising 127% from last year to 27,257 tonnes.

Large increases were also seen in several smaller markets across South-East Asia and the Middle East and North Africa (MENA) region. Exports to Thailand more than doubled to 2,141 tonnes, while exports to Saudi Arabia lifted 235% to 1,602 tonnes.

The only major market where exports dipped was for China, where volumes eased 11% compared to last year to 14,888 tonnes. Between considerable increases in exports to smaller markets and a slight fall in exports to China, Australia’s beef exports are now the most diversified they’ve been since 2016; exports outside of Australia’s top four markets have made up 25% of the total in 2024 so far, compared to 17% for the first four months of 2023 and 15% in 2022.

Sheepmeat

Lamb exports rose 41% from April last year to 31,318 tonnes, while mutton exports rose 20% to 18,913 tonnes. This is the largest April export figure for lamb, mutton, and overall sheepmeat exports on record, following very strong export totals in February and March.

The United States remained the largest market for Australian lamb exports, while mutton exports to MENA lifted 144% from last year to 5,853 tonnes, displacing China as our biggest mutton market for the month.

Growth in mutton export volumes was observed across the entire MENA region, but especially in the Gulf States; exports to Saudi Arabia rose 153% to 1,956 tonnes, exports to the United Arab Emirates lifted 28% to 804 tonnes and exports to Qatar lifted a massive 501% to 765 tonnes.

Market access update

On Friday last week, Brazil declared itself free of foot-and-mouth disease ‘without vaccination’. This is a designation that would grant Brazil market access to several key beef markets, if the disease-free status is accepted by the World Organisation for Animal Health (WOAH) and importing countries.

Over the past decade Brazil has become the world’s largest beef exporter by volume, accounting for around 25% of global trade in 2023. Its exports are heavily geared towards China, where it has market access, and its disease status prevents exports into Japan and South Korea.

Fortunately for Australian exporters, Australia’s suite of free trade agreements (FTA) gives our beef a comparative advantage in global markets regardless of technical market access. In 2026, Australia’s FTA with South Korea will give us a 35% tariff advantage on most favoured nation (MFN) (baseline) trading terms, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which both Australia and Japan are signatories, will give Australia an 18% tariff advantage over MFN trading terms.

 

MLA