It seems like the cattle processing industry is facing some challenges with increasing slaughter rates and nearing capacity. The recent surge in weekly cattle slaughter, boosted by favorable weather conditions and events like Beef 2024, has pushed the industry's capacity close to its limit. Despite efforts like weekend shifts and overtime, current labor capacity suggests that the industry's production capacity sits around 140,000 head per week.
With June approaching, which historically sees high turnoff in northern Australia, there are concerns about exceeding processing capacity, especially if dry conditions exacerbate the situation. Processors are already experiencing difficulties accommodating delivery slots, and some worry about what may happen if conditions worsen and more cattle need to be processed.
While some processors have expressed concerns about potential oversupply, others are less apprehensive. Early frosts are influencing vendors' marketing decisions, prompting some to sell due to deteriorating feed quality. However, there might be a brief lull in slaughter supply in June as some producers hold onto stock for tax purposes until the new financial year.
Overall, it seems like the industry is delicately balanced, with processors closely monitoring supply and capacity to avoid oversaturation.
Saleyards numbers surge
There’s been a surge in saleyard numbers offered across Eastern Australia early this week.
Gunnedah numbers this morning jumped 54pc from last week to 2400 head. Grown steers with two or more teeth sold to cheaper trends, while there were cheaper trends also through the cow market with the heavy high yielding lots least affected.
Source https://www.beefcentral.com/
