Australian live cattle exports increase in September

Australian live cattle exports are recovering, as Indonesia's Foot Mouth disease (FMD) vaccination program increases, and Australia's feeder steer prices stay high.

Australia's cattle exports increased in September to 46,759 head from 43,883 head in August. Exports to China dropped from 11,528 head in August to 7,346 head in September, but it is not uncommon for live exports to China to fluctuate on a monthly basis. Vietnam increased its cattle imports by 1,000 head to 5,220 head for September.

Outbreaks of Foot Mouth disease (FMD) and Lumpy Skin disease (LSD) in Indonesia caused a decrease in live cattle exports from Australia to the country. Australia exported 37,060 head to Indonesia in May, decreasing to 25,449 head in June after initial outbreaks and then dropping again to 20,023 head in July. Exports have since rose from 22,114 head in August to 29,242 head in September, creating a positive outlook for exports to Indonesia.

January-September Australian cattle exports totalled 411,011 head compared to 866,799 head in the same period of 2020, and 642,606 head for the same period of 2021.

The Argus Australian feeder steer price has been increasing from 452A¢/kg in August to 500A¢/kg in October. High southern Queensland feeder steer prices have kept the value of live exports up, because of favourable herd rebuilding conditions which decreased supply through 2021-22. Darwin feeder steer prices have continued to rise at the end of September to around 470A¢/kg, up by more than 10pc from the end of August, according to the Southeast Asian Beef Market Report. Current prices have increased by 80pc from April 2020, when live export prices hit a brief low at 260A¢/kg.

Rainfall from December 2021 to date has been in the lowest 10pc of records since 1900. This has continued to affect parts of northern Queensland and north of the Northern Territory (NT) according to the Bureau of Meteorology. Current poor cattle grazing conditions are mostly a result of a poor finish to the 2021/22 wet season. Many producers in these areas are waiting for the 2022/23 wet season to start.

New Zealand has banned live animal exports via sea from April 2023, under the animal welfare amendment bill that was signed into law on 29 September. China is New Zealand's biggest importer of live cattle, and the ban could open up opportunities for Australian exporters in the future.

By Jessica Clarke