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The Australian and Western Australian Cattle Industry

Manus Stockdale – Manager Beef Market & Supply Chain DevelopmentDepartment of Agriculture and Food, Western Australia

14 July 2015

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Summary

• Overview of the Australian Beef Industry

• The West Australian Beef Industry

• Distribution

• Live Exports

• Beef Processing and Exports

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Australian beef herd

~ 29 million (head)

Domestic consumption

28%

Turnoff 10 .4 million head (2013/14)

Live Export 10%

Domestic Slaughter

90%

1 million head

9.4 million head

Export (boxed beef)

72%

Source: ABS 2013

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WA Beef Sector – A Snapshot

WA beef herd ~ 2 million (head)

Domestic consumption

66%

Turnoff 710,000 head (FYE 2014)

Live Export 43%

Domestic Slaughter

58%

305,000 head

413,000 head

Export (boxed beef)

34%

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Northern Cattle

• Tropically adapted

• Perform better in hot conditions of the region

• Predominantly Bos Indicus (Brahman and Brahman cross)

• Genetic improvement and diversity – increasing suitability for quality slaughter markets

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Pastoral Production Turnoff

Mustering •April to November•Varies according to season & location

Logistics•Trucked direct to export depot or to processor, or•Held in agricultural region for later export or processing

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Southern Cattle

• British & Euro breeds

• Predominantly Bos Taurus (Angus, Hereford, Charolais)

• Adapted to Mediterranean climate of the SW and South Coast

• High meat quality

• High weight for age

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Agricultural Production Turnoff

• Calves born in Mar-April• Calves are weaned from Mother

in Dec • Either lot fed or grass finished as

yearling (18 months)

Domestic slaughter and Live Export•Grain finished turnoff Jan- Aug•Grass finished turnoff Aug-Jan•Live export to Israel, Turkey, Jordan, Russia

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Live export in Western Australia

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WA Live Export Ports

• There are five ports in Western Australia that load cattle for live export.

• Two in the southern WA - Fremantle and Geraldton,

• One in the Pilbara region - Port Hedland

• Two in the Kimberly region - Broome and Wyndham.

Wyndham

Broome

Port Hedland

Geraldton

Fremantle

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Live Exports by Port

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Live Export Ships

There are 25 live export ships that are approved to operate from Australian ports

The total capacity of the approved 25 vessels is approximately 124,500 head (dependant on cattle size).

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Live Export Ships – Capacities

SHIPSHEEP

(hd)CATTLE

(hd) Length (m) Breadth (Beam)

(m) Summer Draft (m)AL MESSILAH 75000 and 800 185.8 32.00 9.02

AL SHUWAIKH 80,000 and 700 179.8 26.50 10.60BADER III 70,000 and 9,000 204.1 26.50 10.73

BARKLY PEARL     3,000 91.5 16.20 4.45BISON EXPRESS     3,000 122.0 15.85 5.65

DAREEN     6,500 140.0 20.50 6.20DEVON EXPRESS     3,000 116.6 16.00 5.31

FINOLA     2,000 86.0 12.00 3.80GHENA 15,000 and 16,000 190.0 32.20 9.60

GL LAN XIU     2,000 120.0 18.30 6.30LINCOLN EXPRESS     2,000 85.4 14.00 3.66

MAYSORA 70,000 and 9,000 196.0 28.40 10.02MURRAY EXPRESS     1,100 73.5 11.40 3.80

NINE EAGLE     2,000 81.0 14.00 4.00OCEAN DROVER 75,000 or 20,000 180.0 31.10 8.20

OCEAN SWAGMAN 25,000 or 7,000 130.0 21.60 7.80PEARL OF PARA     6,000 140.0 20.50 5.80

SAHIWAL EXPRESS     3,000 91.5 16.80 4.26

SHORTHORN EXPRESS     3,400 116.6 16.00 6.01

TORRENS     4,000 140.6 18.00 6.40ANGUS EXPRESS     2,500 103.0 16.80 6.25

BRAHMAN EXPRESS     3,500 133.4 15.85 6.16GALLOWAY EXPRESS     4,000 134.8 19.60 6.80

GANADO EXPRESS     4,000 134.8 19.60 6.80GELBRAY EXPRESS     4,000 134.8 19.60 6.80OCEAN OUTBACK 25,000 or 6,000 130.0 21.60 7.80

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Beef processing and exports

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Beef processing in WA

Processing Sector

• Currently all the abattoirs are south of Geraldton with the larger export abattoirs in the south west

• Abattoir under construction in Broome

• Eight domestic only abattoirs

• Three major export abattoirs

• Harvey Beef,

• V&V Walsh and

• Western Meat Packers

TitleDescription

Content page with large image or graph

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Beef Exports to typical Asian market by Cut

Beef Carcass Yield

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Source: Department of Agriculture Australia

Points of Difference

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• Australia• Excellent disease free status (free from foot and mouth, BSE etc)

• Individual animal traceability (whole of life) through the National Livestock Identification Scheme (NLIS)

• Eating quality assurance program guaranteeing tenderness through Meat Standards Australia (MSA)

• Western Australia• Highly capable live export industry with a long history

• Lower cost of production beef systems in the Kimberley

• Inherently high quality beef product produced from the south

• Two diverse production systems that are complementary for turn off

• Close proximity to South East Asia

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Overview

Northern pastoral production Advantages

Low cost of production Seasonal reliabilityProximity to South East Asian markets

DisadvantagesDistance to processors

Southern Agricultural Beef ProductionAdvantages

High quality product fitting many beef markets and live cattle markets

DisadvantageModerate to high cost of production

Processing Small scale volume compared to Eastern statesRelatively high processing costsShort supply chains and opportunity for customer specific products

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Thank you

Important disclaimer

The Chief Executive Officer of the Department of Agriculture and Food and the State of Western Australia accept no liability whatsoever by reason of negligence or otherwise arising from the use or release of this information or any part of it.Copyright © Western Australian Agricultural Authority, 2015