Market Morsel: Swing low beef chariot
East coast cattle slaughter volumes ease to the lowest weekly level since the start of the season with easing volumes noted across all eastern mainland states. Weekly slaughter dropped to 88,758 head, 31% under the five-year average trend and 35% under levels recorded during 2019 for this time in the season.
The Episode3 beef processor margin model highlighted recently that processors are going through a tough patch with high cattle input costs and the tight season making for a difficult trading environment. Overlaid with the increased restocker activity adding further strength to young cattle and breeder prices and it is no surprise that meat works are running reduced volumes along the entire eastern seaboard.
Slaughter volumes in Queensland are 31% under the five-year trend, NSW is 25% below and Victorian beef processors sit 40% under the average pattern for this time in the year.