The Australian Bureau of Statistics (ABS) has released its latest round of quarterly livestock product statistics, with a notable lift in the female slaughter rate (FSR) for Australian cattle, which places the industry in a destock phase. Lamb slaughter has also risen to 7.2 million, the highest figure on record, and the first time it has been above 7 million head.
The June quarter was a booming one for the livestock industry, with almost all rates increasing as the sector rebuilt post-Covid. The FSR for Australian cattle has lifted across the country to 53.1 per cent, alongside a 17 per cent lift in cattle slaughter, to 2.1 million head – the highest since 2019.
The industry uses 47 per cent FSR as a benchmark as to whether the industry is in a restock, steady or destocking phase. A quarterly FSR of 53 per cent is the second consecutive quarter above this benchmark, which indicates the cattle herd has entered a destocking period.
Meat & Livestock Australia (MLA) senior market information analyst, Erin Lukey, said the country has lifted to its highest female turnoff since 2019, and the largest quarter on quarter lift to their FSR among other states.
“Thanks to four consecutive years that have allowed for rebuild and maintenance, the Australian cattle herd is high when compared to historic averages,” said Lukey.
“Cow retention over this time has created a large female herd, which are now ready for turnoff. Saleyard prices remain well above year-ago levels, as strong demand for Australian beef in the global market helps to maintain confidence as production rises.”
The increase in cattle slaughter has consequently led to an elevated beef production quarter, with a rise of 14 per cent from Q1 2024 and 19 per cent from Q2 2023 to 648,763 tonnes. This is the largest quarterly production total since Q2 2015, and the fourth-highest volume on record.
The gross value of cattle and calves slaughtered increased 13.8 per cent, to $3.6 billion.
This was also a record quarter for lamb, with 177,147 tonnes produced over the quarter, 6 per cent above Q1 2024 and 19 per cent higher than the same quarter last year. Lamb slaughter lifted to 7.2 million head over the quarter, which is Australia’s highest lamb slaughter figure on record, and the first time it has been above 7 million head.
“High red meat export volumes over the June quarter show that demand is growing overseas at the same time that Australian supply is rising,” said Lukey.
“A move towards meat breeds, and more recently to shedding animals, has opened the door to a new way of production. The flock is operating in a new normal, with more lambs being grown, leading to more production.”
Combined sheep and lamb slaughter rose 2 per cent from Q1 2024 and 16 per cent from Q2 last year to 9.9 million head. This makes Q2 the largest quarter for sheep and lamb slaughter since Q1 1973.
“For the financial year, 27.5 million lambs were processed, making the 12-month period the largest on record, and 25 per cent above the five-year average,” said Lukey.
Sheep slaughter was down 2 per cent this quarter to 2.7 per cent, although last quarter the record was the highest since 2018. For the financial year, sheep slaughter lifted 19 per cent from last year to 10.2 million head, which was the highest since 2008.
Combined sheep and lamb slaughter for FY 2023-24 lifted 20 per cent from 2022-23 to 37.8 million head, and the gross value of sheep and lambs slaughtered increased 12.3 per cent to $1.4 billion.
The industry experienced growth for chicken and pork production, but at a much steadier rate. From Q1 to Q2, chicken slaughter increased by 3.2 per cent, compared to a 2.9 percent increase from Q2 2023. Similarly, the gross value of poultry slaughtered increased 2.8 per cent, to $1.0 billion.
Pigs slaughtered in the June 2024 quarter increased 4.5 per cent from March 2024, but only 0.33 per cent from Q2 2023. The gross value of pigs slaughtered increased 7.1 per cent, to $497.7 million.
