Positive projections for beef producers

“The decline and downsizing of the US cattle market is close to finishing, which is likely to have a positive effect on our local market, as the US herd moves into rebuild phase,” said Rob Herrmann, Mecardo. 

“As China moves away from its ‘Covid zero’ policy we should see the impact to the red meat sector we have experienced over the past few years during China’s Covid lockdown also revert back to normal. This should see the demand from Chinese restaurant and food service sectors increase demand for our product.” 

Meanwhile across the globe, a case of mad cow disease (BSE) has been confirmed in Brazil and as a result Brazilian beef exports to China have been halted. 

“Brazil accounts for around 38% of China’s beef imports, so we are carefully watching developments, as the length of the ban may have a significant impact on the outlook for beef,” said Rob. 

On the back of the herd rebuild locally, cattle slaughter has started to rise this year according to Meat and Livestock Australia’s slaughter figures, with Queensland driving the increase. 

Nutrien’s senior account manager livestock based in Roma, Andrew Holt, recently told Queensland Country Life that the local market is holding firm. 

“We are seeing some fluctuations due to weight and quality, but overall, the market is relatively stable. The Roma Saleyards are consistently yarding about 6,500 head,” said Andrew. 

Andrew said the season within a 200km radius of Roma was exceptionally dry. 

“Rain in the Maranoa is desperately needed to get some producers out of trouble. Meanwhile, producers from Morven north to Julia Creek are having a really strong season.” 

For more market insights and trends, including the latest on BSE, visit Mecardo online.