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 Cattle numbers start to impact capacity 

Cattle numbers start to impact capacity

07 Feb, 2012 02:00 AM
BEEF processors may be following the same trend as the sheep industry in terms of lack of supply around the State.

Sheep processors in WA are already struggling to deal with the lack of numbers and the question being asked by many is will the same issues hit the beef industry?

Dardanup Butchering Company (DBC) chief executive Mark Panizza believes some processors are only working four days a week, purely because of the lack of numbers.

"None of us (processors) would be thinking like that if the numbers were there and sustainable," Mr Panizza said.

"But at this point in time most processors are seriously contemplating cutting back to just four days a week."

Mr Panizza said DBC was processing at about 80 per cent of its capacity.

"A lot of the cattle had gone east and that is having a significant effect," he said.

"I would say that all processors in the State are copping it at the moment, whether it is beef or lamb."

He said livestock numbers in WA were tight and that was affecting the price.

He said in November there was a 22pc price rise from 12 months before but it was unsustainable for the industry.

"We are not blaming anybody (for the livestock heading east), we just didn't have the feed or water," he said.

"The livestock had to go somewhere and that is where they went.

"And now when you are talking record prices for both beef and lamb it just isn't sustainable for any of us really."

Mr Panizza said the State needed to look at syncing the cattle industry of the north with the abattoirs in the south.

He said there needed to be some unison between northern producers and southern producers.

"The State really needs to wake up and look at live exports," he said.

"Live export really does have its issues and we need to get some syncing between the two industries and stop so much of the livestock going to live export and increasing the amount which goes through processors.

"You really need some unison between the northern producers and the southern abattoirs because a northern abattoir won't work.

"But if we could find some way of getting the mix right it would be good for the industry."

Mr Panizza said he was not against the live export trade, he just wanted to see a better balance to ensure the future of the livestock industry.

"If you were an export processor you would want your cattle going through your plant and sending boxed beef to markets," he said.

"Obviously if they send them live we don't get the economic spin offs from that but there is an understanding also that you have to have a live export market because those cattle in the north are not suited for the domestic market.

"If there is a way of getting meat offshore from processors then that would help everybody's cost."

Mr Panizza said with less numbers going through the local abattoirs boning and processing costs increased.

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comments


Date: Newest first | Oldest first
It would be interesting to read more opinions by people in the processing industry. Most opinions to date have been simply for or against live export and are therefor quite divisive.
Posted by Real Deal, 7/02/2012 9:04:17 AM, on Farm Weekly
Why not send a few trial shipments from North to South, the cattle being drafted or bought by Southern buyers.?
Posted by Serious Question, 8/02/2012 9:39:48 AM, on Farm Weekly
How come the cattle up North arent considered edible in our domestic market? Surely if the meat were to be ground up into burgers or patties it would sell... I think its way too easy to say the cattle up North just wont sell so we have to have live export. Live export is cruel, so isnt it time we got rid of it, and thought outside the box for once?
Posted by meatlover, 8/02/2012 11:14:59 AM, on Farm Weekly
The numbers of livestock sent for live export is definitely unsustainable. An alternative is neccessary for this industry and its people, whilst also reducing suffering of the animals which is also important.
Posted by Agreed, 8/02/2012 1:28:32 PM, on Farm Weekly
Live animal export is a lose-lose situation... the animals lose AND the processing industry loses.

It's bad for Australia's reputation, it's bad for the economy, it's bad for jobs but most importantly it exposes animals to the trauma and subsequent perils of sea voyages and methods of slaughter over which we have no control.

No abattoirs in any country, even Australia are pretty, there's no such thing as humane slaughter but can we at LEAST slaughter them in a country where there are some laws pertaining to their welfare and spare them the horrific journeys.

Posted by Katrina Love, 8/02/2012 5:01:39 PM, on Farm Weekly
Hi Meatlover-if we send "unfinished" cattle South 2 options are: they go to Agistment(more costs and security issues)or a saleyard(to compete against Southern cattle) Extensive freight and clearing costs and travelling regulations which combined with the dehydration and bruising of flesh that occurs in this scenario plus the issues within the processing sector make marginal/non-viable business returns for fat cattle(which we have to keep until they are older too - and there is a reduction of value for that from processors). Steers South 420kg/$1.20 Boat Steers $2/280kg costs aside.
Posted by mouse, 9/02/2012 8:47:52 PM, on Farm Weekly
@ MS LOVE - Is it good to support meat processors who are mostly foreign-owned and who are using Visa workers(and are proposing to specifically bring more of them in to work - See AAco) and whom, if things dont suit them(the Dollar Debacle) shut the show down! Is that good? WHERE do you get the idea that the Processors LOSE?

Is it good for any Aussies and their families who live and work here to be blanket penalised, and jobs jeopardised by actions and issues offshore? How do animals lose from the attention and effort that has been invested into improving Animal Welfare outcomes?

Posted by mouse, 9/02/2012 9:42:05 PM, on Farm Weekly
Processors can help avert stock going overseas on live-export boats by simply paying more for the stock. Unfortunately, history shows that processors drive the prices down opening the door for live shipping. Stop bleating about live exports- pay more and the problem isn't there. Don't believe it? Then look at how few boats have loaded out of WA this summer.
Posted by Flabbergastered 2, 12/02/2012 11:13:28 AM, on Farm Weekly

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