Cattle slaughter numbers increase
... as farmers reduce stock
The number of cattle slaughtered at export abattoirs rose by 34.86% in May compared to the previous month.
Export abattoirs are experiencing an increase in the number of cattle being slaughtered as farmers reduce stock in preparation for the dry months ahead, while live exports have decreased.
Livestock exports recorded a 14.91% decrease in May compared to April.
According to the Meat Board's Market Watch, live cattle exports, mainly weaners, declined from 13 129 heads exported in April to 11 171 heads exported in May.
"This decline in live exports may be attributed to current pressures experienced in South Africa, where feedlots are currently operating at full capacity since the foot-and-mouth disease outbreak."
Increase
The Meat Board said 95% of May's live exports were exported to feedlots in South Africa, whereas the remaining 5% were exported for farming or breeding purposes to Angola and Botswana.
The number of cattle slaughtered at export abattoirs, however, increased by 34.86% from 7 966 heads slaughtered in April to 10 743 heads slaughtered in May.
"This increase is driven by low rainfalls experienced during the first quarter of the year, causing farmers to reduce stock in preparation for the dry months ahead."
Slaughter at export abattoirs is expected to normalise in August.
Prices
"Cattle prices across the board experienced an increase, with the all-grade carcass price increasing by 11.19% to N$60.81/kg in May."
The Meat Board said weaner prices have experienced a drastic decline from the December price of N$37.18/kg to N$24.92/kg in April.
However, May prices experienced a slight increase of N$1.59/kg.
"This increase could be driven by improved prices offered by abattoirs as some producers purchase weaners for finishing off during the coming seasons," said the Meat Board.
It said that weaner prices are, however, expected to remain low during June and July due to drought-induced supply.
Decline
The Meat Board explained that USA producer prices moreover increased from the April price of N$112.84/kg to N$118.13/kg during May.
This increase is a result of a decline in the supply of market-ready cattle in northern America due to drought conditions.
Total slaughter-ready cattle inventory is down by 3.2% compared to 2022. Additionally, the inventory of boneless beef is 10.5% lower than in 2022, which has caused processors and end users to import and stock more bone-in beef products during the month of May.
The EU experienced a decline in slaughter due to an improvement in feed conditions.
This supply shortage led to an increase in producer prices. EU producer prices have increased by N$6.09/kg from the April recorded price level of N$101.89/kg.
"It is expected that production between May and June will be low and for Irish exports to slow down, resulting in a reduced supply and higher prices as herd rebuilding takes place. Australian prices have notably remained stable, averaging around N$77.72/kg between January and May this year."
Stability
It said that the change in price levels compared to historically high prices recorded in previous years will allow Australian beef to become more competitive and create more sustainable markets for all roleplayers in the supply chain. In essence, the lower prices have brought market stability forward.
South Africa, on the other hand, experienced an 8.3% decline in producer prices due to the decline in demand for beef.
According to the Meat Board, due to the current economic environment in South Africa, especially amid load shedding, suppliers are forced to pay farmers lower prices to limit the costs of back-up diesel-powered equipment used at feedlots and abattoirs.
Drought and reduced supply in southern America (namely in Argentina and Uruguay) have influenced producer price increases due to declines in slaughter.
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Livestock exports recorded a 14.91% decrease in May compared to April.
According to the Meat Board's Market Watch, live cattle exports, mainly weaners, declined from 13 129 heads exported in April to 11 171 heads exported in May.
"This decline in live exports may be attributed to current pressures experienced in South Africa, where feedlots are currently operating at full capacity since the foot-and-mouth disease outbreak."
Increase
The Meat Board said 95% of May's live exports were exported to feedlots in South Africa, whereas the remaining 5% were exported for farming or breeding purposes to Angola and Botswana.
The number of cattle slaughtered at export abattoirs, however, increased by 34.86% from 7 966 heads slaughtered in April to 10 743 heads slaughtered in May.
"This increase is driven by low rainfalls experienced during the first quarter of the year, causing farmers to reduce stock in preparation for the dry months ahead."
Slaughter at export abattoirs is expected to normalise in August.
Prices
"Cattle prices across the board experienced an increase, with the all-grade carcass price increasing by 11.19% to N$60.81/kg in May."
The Meat Board said weaner prices have experienced a drastic decline from the December price of N$37.18/kg to N$24.92/kg in April.
However, May prices experienced a slight increase of N$1.59/kg.
"This increase could be driven by improved prices offered by abattoirs as some producers purchase weaners for finishing off during the coming seasons," said the Meat Board.
It said that weaner prices are, however, expected to remain low during June and July due to drought-induced supply.
Decline
The Meat Board explained that USA producer prices moreover increased from the April price of N$112.84/kg to N$118.13/kg during May.
This increase is a result of a decline in the supply of market-ready cattle in northern America due to drought conditions.
Total slaughter-ready cattle inventory is down by 3.2% compared to 2022. Additionally, the inventory of boneless beef is 10.5% lower than in 2022, which has caused processors and end users to import and stock more bone-in beef products during the month of May.
The EU experienced a decline in slaughter due to an improvement in feed conditions.
This supply shortage led to an increase in producer prices. EU producer prices have increased by N$6.09/kg from the April recorded price level of N$101.89/kg.
"It is expected that production between May and June will be low and for Irish exports to slow down, resulting in a reduced supply and higher prices as herd rebuilding takes place. Australian prices have notably remained stable, averaging around N$77.72/kg between January and May this year."
Stability
It said that the change in price levels compared to historically high prices recorded in previous years will allow Australian beef to become more competitive and create more sustainable markets for all roleplayers in the supply chain. In essence, the lower prices have brought market stability forward.
South Africa, on the other hand, experienced an 8.3% decline in producer prices due to the decline in demand for beef.
According to the Meat Board, due to the current economic environment in South Africa, especially amid load shedding, suppliers are forced to pay farmers lower prices to limit the costs of back-up diesel-powered equipment used at feedlots and abattoirs.
Drought and reduced supply in southern America (namely in Argentina and Uruguay) have influenced producer price increases due to declines in slaughter.
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