Many Australian beef processors are starting to consistently hit weekly processing goals, as staffing woes ease that allow slaughter rates to increase.
National kill volumes have steadily increased this year, from 116,113 head for the week ending 19 January to 142,162 for the week ending 31 May. The slaughter rate in the last week of May was 22pc above the same week last year, according to Meat and Livestock Australia (MLA) data.
North Australia processing plants have pushed up throughput with extra shifts on weekends in May, which is set to continue through June, according to Rural Bank's June Insights report. The onset of winter conditions in the south of the country has increased the number of cattle released for slaughter, putting downwards pressure on prices and raising processor margins. This is to see further growth in processing capacity throughout June in southern regions.
A couple of southern Queensland processors have said they are now adequately staffed with skilled labour across all parts of their abattoirs, consistently reaching weekly slaughter goals that they hope to increase as more cattle become available.
Migrant labour has typically come from backpackers and workers from the Pacific islands on a seasonal workers programme to work in Australian abattoirs. Since the Covid-19 pandemic, which saw major travel restrictions imposed domestically and internationally, Australia's agricultural industry experienced reduced availability of workers, weighing on cattle slaughter volumes. Australia has had a post-pandemic immigration boom in the past year but concerns about housing shortages is leading to a tightening of visa regulations in the past few months.
The Australian cattle herd is forecast at 28.6mn head by 30 June 2024, according to MLA, down by 1pc from the previous year when three consecutive good weather years saw herd numbers hit highs last seen in 2014. This indicates that the cattle herd has entered a maintenance phase, with elevated sales driven by higher supplies rather than producer destocking.