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TAS Country : September 30th 2010
Friday, October 1, 2010 Tasmanian Country 19 The Stock Report Queensland's big wet disrupts supply chain market TALK Richard Bailey CATTLE markets on the east coast of Australia are going through an interesting time with the young cattle indicator hitting a new 2010 high last week at 373.5c/kg dressed weight. One of the major reasons for this is the wet weather in southern Queens- land which has caused major disrup- tions in the supply chain with last week's cattle yardings back 68 per cent on the previous week. The Australian dollar is trading at about 97c which is causing concern for beef exporters. It will be interesting to see what happens when the supply of Queens- land cattle gets back online --- one would have to assume prices will ease. Even with the high dollar, Tas- manian cow prices have remained very good with many heavy beef cows at Killafaddy and Quoiba sell- ing for 140c-154c/kg making very heavy cows fetch more than $1000/head --- a pretty good return for an old cow past her ''used by date''. It is interesting to see eastern state export buyers trying to buy cows in Western Australia and restockers from the eastern states keen to secure young cattle to feed on. The West Australian season has been very dry and large numbers of sheep and lambs are being trucked east. Some reports suggest about 20,000 sheep are going east each week. Last year 94,680 sheep and 5471 cattle crossed the WA/SA border. More than 95,000 sheep and lambs and 10,212 cattle passed through the Ceduna checkpoint between Septem- ber 1 and 17. Imagine what this is going to do to the West Australian stock numbers and to their overall flock and herd numbers. Meanwhile, there is more good news on the lamb and sheep front with ABARE forecasting increases in both price categories. In its September quarter 2010 report, ABARE forecast that saleyard prices of both sheep and lambs will increase in 2010-11 to 470c/kg and 360c/kg respectively. Lamb exports are expected to remain steady at 158,000 tonnes but rise in value by 4 per cent to $953 million. We can only hope the forecasters are on the money. Aussie beef producers to invade Europe DOUBLING the European Union grain-fed beef quota to 45,000 tonnes will be a long-overdue opportunity for the Australian beef in- dustry. Australia's big two processors, Teys Brothers and Swift Australia, see any extension of the exist- ing 20,000-tonne grain-fed quota as a bonus. Teys livestock director Geoff Teys described it as ''an opportunity for Aust- ralia to get into a duty-free market'', which he said would help offset the soar- ing Australian dollar. ''If producers want more return, this is where they will get it, particularly if you break down the way the duty is in Japan and Korea and the dollar so high,'' he said. ''We already do a lot of EU, and we believe it is an important market because we can no longer rely as heavily on our traditional markets in Asia, America and domestically.'' Swift Australia director and corporate affairs man- ager John Berry said it was a chance to get a serious foothold in the EU. ''It lets us diversify our current grain-fed product and will be a good result all round for the industry in Australia,'' he said. ''Like all major processors, we are always looking for new markets, and duty-free ones are so hard to find.'' However, an increase in the EU quota will have no immediate impact on Vic- toria's primarily grass-fed herd. Meat and Livestock Australia director and Western District grazier John Wyld said while the new quota wouldn't hap- pen soon, big lot-feeders and processors will still be licking their lips. But Victorian producers will be waiting a long time for benefits to trickle through the system. ''Of course the big appeal is this grain-fed quota is duty-free,'' Mr Wyld said. ''The EU slugs our grass- fed beef 20 per cent import duty, while the Japanese demand 38.5 per cent. ''Qualifying for the EU market is also tough. The specifications are tight, right down to the mega- joules of energy fed into cattle. And those cattle are on feed for more than 100 days, and not on a normal feedlot ration.'' He said because the im- porter set the quota, con- tracts were issued on the 23rd of each month and were only valid for 90 days. So a feedlotter has to have big numbers of cattle in an EU-accredited sys- tem in the hope there will be an order. ''It shows the EU is opening the door, it's just not that simple to take advantage of it,'' he said. ''Even though the move is being driven by falling European domestic pro- duction, and the market is primarily high-quality British-breed product, there is a long way to go for the door to open right up.'' The Weekly Times For Sale 25 Stud Angus heifers 12 m.o. POA 3 South Devon bulls $2,000 - $3,000 1 Hereford bull 2 y.o. $1,250 ono. Agistment available for 500 head from 1st Nov for 6-10 weeks Ph. Peter Collins 0427 547 145 6 Friesian bulls and 6 Jersey bulls 2 Murray Grey bulls 1 Angus bull Ph. Greg Duke 0407 882 595 90 Autumn calving dairy cows POA 20 Jersey bulls POA Ph. Frank Steers 0418 141 081 or Kutis Grey 0428 562 718 16 Friesian and Friesian X heifers calving now $900 Ph. Adam Crawford 0400 550 412 7 Xbred dairy heifers calving from 1st Oct $950 12 Friesian cows 2-3 y.o. POA Qty Jersey and Friesian bulls POA 1 Stud Murray Grey bull reg. $3,000 Ph. Bernard Atkins 0417 593 158 Wanted to Buy 10-15 young Hereford cows and calves Ph. Peter Collins 0427 547 145 50 Angus heifers PTIC Ph. Adam Crawford 0400 550 412 Store Cattle - Murray Greys, Angus, Hereford or their crosses - steers and heifers 200 - 350kg, upto$2perkgliveonfarm Ph. Peter Collins 0427 547 145 or Ph. Bernard Atkins 0417 593 158 Choppers - cows and bulls - for a competative price phone a Vicstock agent first. GST may apply. PHONE A VICSTOCK AGENT FIRST 2000392-101010 Tasmania Prompt payment always at Greenham 6452 2701 www.greenham.com.au What a cold and miserable month! Let s hope the sun will start shining now and put some warmth back into the soil. With all the rain we ve had that would really get the grass moving and give us a wonderful spring. SLOW IN JAPAN, NO HOLIDAYS The Japanese market is still weak. Demand for chilled items is soft especially with no holiday period on the calendar at this time. Next week our reps will do some stock takes and closely monitor the sales. That will tell us what sales we can expect next month and give us a good indication of future demand. As in every export market, the effect of the dollar is being felt as exporters try to push up their prices in response to currency moves. Fortunately, the relationship between the Australian dollar and the yen is fairly stable. US TRIM SLUGGISH Trimmings in the US market are sluggish. The American cow kill is still high and fresh trim from that is getting cheaper. We normally see a seasonal decline in US trim prices around now but this year it is about six weeks earlier than normal, which is a real issue with the dollar still kicking up. We need to increase our prices to keep pace with the dollar and that s difficult without a rise in demand. HIGH LAMB PRICES HELP AT HOME Prices on the domestic market have increased lately with some cuts in short supply. And the main reason seems to be rapidly rising lamb prices. As lamb gets more expensive, consumers are seeing beef as a relatively better value. Butchers are now realising there s not much point in selling beef at a discount, hence the firming market. Currently, we have good demand on all cuts which makes balancing the animal much easier. It will get difficult later in the year though, when summer brings on demand for loin cuts while the secondaries fall away. SUCCESSFUL RENOVATION We just completed a major renovation at the Smithton plant and it has gone without a hiccup. Starting up production again has been a bit slow as our people learn new procedures, and get used to new equipment. This all takes time, but we hope to be back in full swing next week, and then ramp up to the new, higher kill target in November. The extra room and latest equipment will help us turn out a top product. Tasmanian farmers grow the best grass fed beef in the world. We re making sure our processing capacity is also top notch. Peter Greenham Greenham s Corner From the Manager, Peter Greenham You can sell to us liveweight at: • Smithton Greenham Plant, Mon--Fri, 9am--noon • Osmaston 670 Osmaston Rd, Mon, 9am--noon • Howth Kennaglen, Tues, 9am--noon • Ringarooma 69 East Maurice Rd, Wed, 9am--noon Like to know more? Then just ring: Elliot Mainwaring Circular Head 6456 1300 0419 131 458 Nick Strickland Central / N-W 6433 3230 0417 335 843 Ian Millen Central East/North-East 6344 8915 0408 133 685 Ron Crack King Island 0400 895 133 Michael Ardle South 0428 134 122 Wayne Oliver Statewide 6362 3682 0419 358 441 Cade Ebdon Statewide 0409 437 950 Graeme Pretty Livestock Controller 0418 505 347 RGM/GRT34984
September 23rd 2010
October 7th 2010