The quarterly Australian Bureau of Statistics slaughter and beef production data for the second quarter ended June 30 have confirmed the record pace of production so far this year.

Although somewhat dated by the time it is released, ABS slaughter data issued this morning  (see details below) confirms recent breakneck production activity reflected in the more timely, but less accurate NLRS weekly kill data.

Grids steady

Meanwhile, direct consignment slaughter rates across eastern and southern states are mostly steady this week, after a series of rises earlier in August.

Competitive quotes in southern Queensland this morning had heavy slaughter cows +300kg at 640c/kg, and four-tooth grass ox 700-710c/kg. Central Queensland plants are 10c or 20c/kg behind those rates.

Similarly in southern states, there are few changes evident in over-the-hooks markets this week. We’ve seen grids in eastern parts of South Australia and southern NSW this morning at 720c/kg on heavy cows, and grass four-tooth ox no implant 790c. Those rates are up 20c/kg on prices seen three weeks ago.

ABS second quarter stats

ABS slaughter and beef production data was released this morning.

Nationally, adult cattle slaughter last quarter (ended 31 June) reached 2.338 million head – the highest head-count since the same quarter back in 2015. Last quarter was 10pc or 215,000 head higher than the same quarter last year. New South Wales recorded its strongest quarter since 2014, while Victoria – boosted by big inflows of slaughter cows and steers out of Queensland and Central Australia (see references below) – recorded its biggest quarterly kill since 1978.

National female slaughter (cows & heifers) recorded its second highest quarterly kill since 1978 – surpassing the drought liquidation periods in 2019-2020 and 2013.

Exceptionally strong cow prices and equally strong international trimmings demand have contributed to the surge in female slaughter, especially in states like Victoria, where females have consistently made up +73pc of overall kills for the past couple of months.

The first half of the calendar year ended 30 June produced slaughter numbers 13pc or 580,000 head higher than the same period last year – showing the continued growth in both cattle supply and processing capacity, as labour availability edges higher this year.

Average carcase weights in the June quarter were unchanged on last year at 307kg, but fell 5kg from the March quarter due to high female rates of kill.

National beef production for the half-year ended June reached its highest level on record at 717,891 tonnes – aligning with record breaking beef exports seen for the year to date. This year is up 15pc or 179,000t on the same six months last year.

Cow prices continue to soften

Saleyards cow prices that surged well ahead of direct consignment only three or four weeks ago have continued to settle this week.

The NLRS processor cow indicator (saleyards derived) has slipped today to 353c/kg liveweight, down from its peak back on 4 August of 375c. That 22c/kg (6pc) slide in a fortnight partly reflects the declining appetite among southern Australian processors to buy expensive cows out of Queensland, only to have to foot the $120-$150 a head freight bill to get them home. Reports continue to filer out of southern NSW and Victoria of export processors winding-back shifts and throughput, in the face of high slaughter cow prices. One southern NSW plant is now killing three days a week, down from five.

Supported by northern-procured slaughter cattle, Victorian processors recorded their largest kill of the year on week ending 25 July at 27,300 head, but weekly numbers have declined by 5-10pc since then, as buying out of Queensland moderates.

Despite all that, saleyards cow price levels today still remain close to the all time highs seen back in 2022.

Saleyards trends

Gunnedah sale this morning yarded 4350, up 600 on last week. Grown steers to process sold from 350-474c/kg and heifers to 540kg 340-362c. Heavy cows lost up to 17c/kg to sell from 370-396c/kg, while medium weights sold from 220-350c.

Wodonga sale this morning yarded 750 head, with cows making up almost half the offering. On the export side, well-bred steers 500-700kg were primarily purchased by feedlots, with prices ranging from 414-495c/kg. Heavy steers and bullocks suitable for processors sold from 420-483c/kg. Heavy cows were in reasonable numbers, with the bulk making from 372-411c/kg. Leaner cows less than 520kg were keenly sought after, selling from 282-374c.

Wagga sale yesterday  yarded 3325, down a little on last week. In the export sale heavy steers and bullocks suitable for processors were limited, which did distort the trends. The bulk sold from 422–455c/kg. Heavy cows were keenly sought after, resulting in a prices lifting 8c/kg. Heavy cows sold from 370-417c/kg. The middle run of leaner cows less than 520kg made from 270–392c.

Roma store sale was still progessing this morning as this report was compiled, offering a yarding of 7700. Grown steers 500-600kg averaged 400c/kg, while bullocks +600kg sold to 408c/kg, averaging 401c. Cows were yet to sell – full report tomorrow.