WESTERN Australian beef is booming.
Unprecedented demand from feeders and graziers has fuelled continued record prices across saleyard venues throughout the State this year.
And the buoyant beef market looks set to continue with good pasture and hay supplies on hand throughout large parts of Western Australia as the summer months approach, adding to beef producer confidence in the industry.
Meat & Livestock Australia's (MLA) Western Young Cattle Indicator (WYCI) has traditionally been the little brother to the Eastern State's Young Cattle Indicator (ESCI) but WA's surge in saleyard markets this year saw it overtake its east coast counterpart.
On November 18 the WYCI was reported at 1145.42 cents a kilogram carcase weight (CWT) which showed a year-on-year growth of a massive 310.71c/kg CWT.
This was 50.69c/kg CWT in front of the EYCI, which was reported at 1094.73c/kg CWT, which was stronger by 267.62c/kg CWT compared to 12 months ago.
The report showed other indicators were significantly stronger 12 months on.
WA's vealer steer indicator was at 646.5c/kg liveweight (LWT), up 208c/kg on this time last year, feeder yearling steers were 507.3c/kg LWT, up 119.8c/kg, medium steers were 496.2c/kg LWT, up 121.5c/kg and medium cows were 366c/kg LWT, up 96.6c/kg LWT.
Liveweight values at the first WALSA weaner sale at Boyanup on November 10 exemplified the growth of the WA market with a massive result.
Beef steers sold to $2454 per head and 480-830c/kg LWT to average 650c/kg and heifers to $2158 and 440-635c/kg to average 560c/kg with the yarding of 1164 weaners averaging $2024 per head across all weights and descriptions.
This showed an almighty $645 rise in the per-head average compared to the corresponding sale last year where 1325 weaners averaged $1379 with steers selling to $1733 from 404-502c/kg to average 445c/kg and heifers to $1671 and 370-458c/kg to average 452c/kg.
Local and pastoral cattle values at special store fixtures at Muchea and Boyanup have also climbed to unseen levels highlighted by prices making 1000c/kg liveweight for the first time at a WA saleyard, with a pen of lightweight first cross steers making 1020c/kg at Nutrien Livestock's recent store cattle sale in early November at Boyanup.
On a national level, MLA's November update summary for its 2021 industry projections reports favourable seasonal conditions in the Eastern States and WA and revised slaughter numbers across Australia down to 6 million head for 2021, the lowest level in 36 years.
Carcase weight estimates are expected to reach record levels but have also been revised slightly down to 308kg per head, taking overall production estimates to 1848 tonnes CWT.
The report said the live export industry is struggling with a range of issues hampering the trade, with fewer cattle being sent overseas to key markets and only slightly more than 700,000 head expected to be exported in 2021.
The Australian dollar continued its upward trend since September and along with labour shortages, high shipping costs and record-breaking cattle prices, exporters have no shortage of challenges.
MLA reported the increasing demand for protein from China has resulted in many suppliers shifting their focus towards this market (particularly United States and South America) to capitalise on Australia's constrained production and ongoing trade tensions.
The report said Korea remains a strong, reliable market for Australian exports while Japan continues to purchase the most Australian beef.
With an eye to the future, MLA reported prices are likely to remain historically high for the foreseeable future and demand for domestic cattle is likely to be influenced by shifts in the global trading landscape.
It said with an already diminishing supply of prime cattle, saleyard prices are expected to benefit from the ongoing competition as lotfeeders, restockers and processors all look to secure cattle.
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