meat & livestock weekly Friday, 28 June 2013 meat & livestock weekly Friday, 28 June 2013 Tough 2012-13 fiscal year draws to a close With the 2012-13 fiscal year drawing to a close, a review of the past 12 months clearly illustrates the impact of the driest period across eastern Australia for some years on saleyard prices and livestock supplies. However, in the wake of the wet start to winter in southern Australia, the EYCI managed to hold onto recent gains this week, finishing Thursday at 319.5﹌/kg cwt, while nationally, trade lambs averaged 485﹌/kg cwt. After the very wet period from January 2010 through to June 2012, the past 12 months have been punctuated by the failed wet season across most of northern Australia, along with extreme heat and very dry conditions during spring, summer and autumn for southern Australia. Indeed, while an improvement in overall seasonal conditions in the past six weeks has lifted both prices and producer sentiment in many regions, average saleyard prices for 2012-13 were clearly dragged lower by drought, increased turnoff (especially for females in 2013) and limited restocker demand. For 2012-13, the national average saleyard price for trade steers was 348﹌/kg cwt . down 9% on the previous year, but ranging from a peak of 393﹌/kg cwt in late August, to a low point of 307﹌/kg cwt in late January. The largest decline in the average price at saleyards for the year was for medium cows, averaging 12% lower on 2011-12, at 256﹌/kg cwt, while heavy steers averaged 5% lower, at 324﹌/kg cwt. An increased supply of lambs throughout the warmer months of 2012-13 was the result of producers having little option but to sell, given the deteriorating season, which contributed to average saleyard lamb prices for the fiscal year averaging 13-28% lower year-on-year. However, the sharpest decline was registered for mutton, which averaged 43% lower in 2012-13, at 193﹌/kg cwt . the lowest fiscal year average since 2007. Key developments: Heavy lamb prices come to the fore . page 3 Lamb cash incomes hit hard in 2012-13 . ABARES . page 7 Australian beef market share increases in the EU . page 8 Weather watch... Source: Bureau of Meteorology Legend Rainfall analysis . week ending 27 June 2013 Above 50mm 25.50mm 10.25mm 1.10mm 0.1mm Decent falls limited to the coast Decent rain fell mostly on the south- eastern coastal fringes of NSW and the central coast of WA this week, with recordings in excess of 50mm in each region. Southern SA also registered worthy falls of over 25mm in some areas, assisting recently sown winter crops and pastures. Light, isolated showers were registered across other southern regions, but the week was dry across the north. Cattle (﹌/kg cwt) Weight M us cle Fat TW LW LY Trade steer 220-260kg A-C 3-12 311 311 327 M edium steer 260-300kg A-C 7-22 311 304 324 Heavy steer 300-420kg A-C 7-22 314 306 329 M edium cow 240-280kg A-E 3-22 236 232 271 M edium trade lamb 18-20kg 2-4 474 465 438 Heavy trade lamb 20-22kg 2-4 474 465 437 Heavy lamb 22kg + 2-4 471 462 429 M utton 18-24kg 2-4 238 217 259 Sheep and lambs (﹌/kg cwt) Cattle Weight M us cle/Fat TW LW LY Trade steer 330-400kg C3 (﹌/kg lwt) 183 191 201 (﹌/kg cwt) 338 350 372 M edium steer 400-500kg C3 (﹌/kg lwt) 159 156 176 (﹌/kg cwt) 297 288 330 Heavy steer 500-600kg C4 (﹌/kg lwt) 169 180 185 (﹌/kg cwt) 305 328 334 M edium cow 400-520kg D3 (﹌/kg lwt) 118 111 132 (﹌/kg cwt) 240 231 273 Feeder steer 330-400kg C2 (﹌/kg lwt) 180 174 200 Sheep and lambs R estocker/feeder lamb 0-18kg 1-2 ($/head) 60 63 63 M erino lamb 16-22kg 2-3 (﹌/kg cwt) 407 402 349 Light lamb* 12-18kg 2-3 (﹌/kg cwt) 407 415 391 Trade lamb# 18-22kg 2-4 (﹌/kg cwt) 485 486 408 Heavy lamb# 22kg + 2-4 (﹌/kg cwt) 517 499 379 M utton 18-24kg 2-3 (﹌/kg cwt) 269 285 284 *1st & 2nd cross & Merino, #1st & 2nd cros s Eastern States Trade Lamb Indicator J F M A M J J A S O N D 300 400 500 600 700 A﹌/kg cwt 2012 2013 monthly five-year ave This week 490 Last week 494 Last year 400 Eastern Young Cattle Indicator (EYCI) J F M A M J J A S O N D 250 300 350 400 450 A﹌/kg cwt 2012 2013 monthly five-year ave This week 319.50 Last week 317.50 Last year 375.50 National over the hooks indicators Livestock pricesNational saleyard indicators TW = This week, LW = Last week, LY = Last year MLA＊s NLRS MLA＊s NLRS MLA＊s NLRS For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 1 Friday, 28 June 2013 meat & livestock weeklycattle markets Friday, 28 June 2013 meat & livestock weeklycattle markets Young cattle dominate yardings The first month of winter has seen an increase in young cattle offered through MLA＊s NLRS reported saleyards, making up around 65% of total throughput so far, compared to 60% in May. The increase in young cattle offered can be attributed to the recent improvements in prices for yearling cattle, exacerbated by rainfall across the eastern states in key grazing areas, and the resurgence of feeder and restocker interest. With average temperatures throughout Queensland reasonably mild so far through winter, cattle are holding condition, allowing producers to sell suitable lines through saleyards at improved prices. The majority of western cattle coming forward are still showing the effects of a prolonged dry summer and autumn, however improved buyer interest further assisted price lifts in recent weeks. Plain yearling steers at Tuesday＊s Roma store sale sold from 164﹌ to 194﹌/kg lwt, steady on last week, while the majority of heifers to restockers ranged from 130﹌ to 173﹌/kg lwt. Consignments through NSW have Monthly cattle throughput predominately been plain in recent weeks, with limited numbers of supplementary fed 80 % of yardings lines offered. Heavy yearling steers to feed at 70 Wagga sold from 162﹌ to 192﹌/kg lwt on Monday, while the heifer equivalents made 60 from 145﹌ to 172﹌/kg lwt. As throughput declined at CTLX, prices for medium weight 50 yearling steers lifted 6﹌/kg lwt on average, 40 and ranged from 165﹌ to 193﹌/kg lwt. Cattle quality in Victoria remained mixed, 30 although some well-bred lines at Pakenham 20 and Leongatha were attracting high prices, with medium weights topping at 232﹌/kg lwt 10 March Junethis week . albeit in limited numbers. The majority of yearling steers sold from 177﹌ to Source: MLA's NLRS April May 197﹌/kg lwt for the better finished lines across the state, while restockers are reportedly looking to secure secondary lines to finish, as winter crops establish. MLA＊s NLRS Export Trade trend Saleyard throughput -for week ending 27/06/13 At NLRS reported centres TW LW LY Qld 21,815 20,355 15,425 NSW 18,175 18,948 18,428 Vic 10,518 10,514 8,726 SA 1,760 2,217 2,031 WA 1,989 1,703 2,021 Tas 80 160 121 Slaughter statistics -for week ending 21/06/13 TW LW LY Qld Cattle 81,868 71,460 72,781 Calves 556 253 1,653 NSW Cattle 36,309 33,776 33,112 Calves 4,639 3,688 4,315 Vic Cattle 23,118 19,712 19,638 Calves 6,777 6,630 5,847 SA Cattle 8,170 7,454 7,267 Calves 69 57 47 Tas Cattle 4,662 3,879 4,625 Calves 239 256 222 Cattle slaughter J F M A M J J A S O N D 20 60 100 140 180 '000 head 2012 2013 Cattle throughput J F M A M J J A S O N D 0 20 40 60 80 '000 head 2012 2013 Cattle movements MLA＊s NLRS WWWWWant access to the daily livestock market summaries.ant access to the daily livestock market summaries.ant access to the daily livestock market summaries.ant access to the daily livestock market summaries.ant access to the daily livestock market summaries. Check out the National Livestock Reporting Service daily livestock summaries at www.mla.com.au/marketnews Cattle indicators vary across the eastern states Total eastern states cattle throughput was unchanged week-on-week at markets reported by MLA＊s NLRS, while indicator prices varied across most categories. At the conclusion of Thursday＊s markets the Eastern Young Cattle Indicator (EYCI) finished on 319.5﹌/kg cwt, up slightly on Wednesday and a further 2﹌/kg cwt on last week. Trade steers lost some of the ground gained last week, with the indicator price slipping 11﹌/kg cwt, to average 340﹌/kg cwt. The medium steer indicator lifted 7﹌/ kg cwt, to average 296﹌/kg cwt, while heavy steers were back 21﹌/kg cwt on last week＊s level, making 305﹌/kg cwt. The medium cow indicator lifted a further 11﹌/ kg cwt week-on-week, to average 241﹌/ kg cwt, with processor demand strengthening as supply tightens across the eastern states. Feeder steers also recorded a 6﹌/kg lwt increase, averaging close to 179﹌/kg lwt. MLA＊s NLRS Medium cow J F M A M J J A S O N D 0 50 100 150 200 250 300 350 A﹌/kg cwt 2012 2013 monthly five-year ave Feeder steer J F M A M J J A S O N D 140 160 180 200 220 240 A﹌/kg lwt 2012 2013 monthly five-year ave Heavy steer ' ' ' ' ' ' ' ' ' ' ' ' J F M A M J J A S O N D 250 300 350 400 A﹌/kg cwt 2012 2013 monthly five-year ave'National indicators MLA＊s NLRS Cattle price data is contained on page 9 market statistics. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeeklyand excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 2 Friday, 28 June 2013 meat & livestock weeklysheep & lamb markets Friday, 28 June 2013 meat & livestock weeklysheep & lamb markets National lamb supply contracts National lamb supply, as reported by MLA＊s National Livestock Reporting Service, was down slightly (6%) week-on-week, after high throughput last week caused prices to contract. Nevertheless, national lamb supply still remains 26% above the corresponding period last year, despite the improved seasonal conditions, as producers jump at the higher prices on offer. Restockers have been buoyed by recent rain, National lamb yardings inducing confidence back into the market at '000 head 120 many centres this week. Trade and processor demand fluctuated at most markets, 100 especially where quality was lacking for light and trade weight lambs. Numbers of heavy 80 and extra heavy weight lambs, over 26kg cwt, were reportedly back this week in most 60 states. 40 NSW lamb yardings reduced 11% week-onweek, with all centres (except Dubbo) yarding 20 fewer consignments. Similarly, Victorian lamb supply decreased 10% week-on-week with 0 most buyers seeking out lambs carrying more Source: MLA＊s NLRS condition. SA supply was 24% higher this week, boosted by numbers at the SA Livestock Exchange and Mount Gambier. New season lambs at the SA Livestock Exchange were sought out by feeder and trade buyers. WA throughput gained 19% week-on-week, with increased supply at both Katanning and Muchea. National sheep supply was 7% higher this week, which meant it was significantly above the corresponding period last year. The larger turnoff, possibly due to recent higher prices, met less competition, and this was intensified by a decrease in quality. Light weight sheep were more prominent, yet prices for mutton carrying a good skin length remained firm. Victorian sheep supply was 9% higher this week, while throughput in SA just about doubled from last week＊s level. WA mutton yardings slipped 34% week-on-week, while NSW mutton yardings lifted 15%, with throughput at Dubbo more than doubling. last year last week this week NSW Vic SA WA Tas Saleyard throughput - for week end ing 27/06/13 At NLRS reported centres TW LW LY Vic Lamb s 39,551 44,019 35,755 Sheep 21,014 19,238 10,430 NSW Lamb s 98,990 110,719 79,695 Sheep 43,020 37,346 19,626 SA Lamb s 15,996 12,861 12,687 Sheep 6,272 3,148 3,021 WA Lamb s 15,690 13,160 7,162 Sheep 9,810 14,881 4,617 Tas Lamb s 750 950 840 Sheep 650 600 35 Slaughter statistics - for week end ing 21/06/13 TW LW LY Vic Lamb s 175,058 148,887 160,715 Sheep 51,192 37,150 32,482 NSW Lamb s 95,049 90,749 88,634 Sheep 41,609 29,451 23,249 SA Lamb s 73,844 62,362 76,018 Sheep 19,025 19,376 9,086 Qld Lamb s 6,240 4,820 4,331 Sheep 10,273 8,639 7,954 Tas Lamb s 13,628 11,163 13,095 Sheep 5,857 4,036 1,704 Lamb and sheep throughput J F M A M J J A S O N D 0 50 100 150 200 250 300 350 '000 head 2012 lamb 2013 lamb 2012 sheep 2013 sheep Lamb and sheep slaughter J F M A M J J A S O N D 50 150 250 350 450 '000 head 2012 lamb 2013 lamb 2012 sheep 2013 sheep MLA＊s NLRS Sheep and lamb movements Heavy lamb prices come to the fore As supply tightened this week across MLA＊s National Livestock Reporting Service markets in NSW and Victoria, throughput in SA lifted, as improved prices last week provided greater incentive for sellers. At the conclusion of Thursday＊s markets, the Eastern States Restocker Lamb Indicator was 10﹌ lower, at 409﹌/kg cwt. Merino lambs lifted 14﹌, to 419﹌/kg cwt, while light lambs decreased 7﹌, to 412﹌/ kg cwt, with poorer quality among these categories a contributing factor. The Eastern States Trade Lamb Indicator was 4﹌ lower on 490﹌/kg cwt, while heavy lambs gained 11﹌ for the week, to 518﹌/kg cwt, the highest level since the end of 2011. Mutton throughput across the eastern states lifted significantly, with all states contributing to the rise. Consequently, the eastern states mutton indicator slipped 22﹌ at the close of Thursday＊s markets to finish on 278﹌/kg cwt, as demand eased after recent strong weeks. MLA＊s NLRS Mutton J F M A M J J A S O N D 100 200 300 400 500 A﹌/kg cwt 2012 2013 monthly five-year ave Heavy lamb J F M A M J J A S O N D 250 350 450 550 650 A﹌/kg cwt 2012 2013 monthly five-year ave Restocker feeder lamb J F M A M J J A S O N D 30 50 70 90 110 130 A$/hd 2012 2013 monthly five-year ave National indicators MLA＊s NLRS Sheep and lamb price data is contained on page 9 market statistics. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 3 Friday, 28 June 2013 meat & livestock weeklygeneral livestock Friday, 28 June 2013 meat & livestock weeklygeneral livestock Smaller flock, higher prices for lamb . ABARES The Australian sheep flock is estimated to have declined by 1% in 2012-13, to 74 million head, according to the Australian Bureau of Agricultural Economics and Science (ABARES), Agricultural Commodities . June quarter 2013. The smaller flock is largely due to a significant Lamb slaughter and weighted increase in sheep and lamb turn-off throughout average saleyard price the past year . reflective of the tough seasonal million head ﹌/kg cwt 25 750 conditions. Furthermore, the sheep flock is Goat rates lift Supply has tightened considerably in the eastern states due to substantial rainfall over the past couple of weeks. The declining Australian dollar, along with the lack of supply, has set upward pressure on rates across all categories. Prices are likely to remain firm in the projected to fall by a further 0.5% in 2013-14, slaughter saleyard price coming weeks, as supplies will reportedly 20 600 to around 73.6 million head. continue to be tight. MLA＊s NLRS 15 450 TW LW LY Prime -Melbourne nq nq 740 Prime -Brisbane nq nq 740 Bleachable fancy nq nq 700 Tallow ($/t, delivered in store) TW LW LY AWEX E.M.I 1047 1066 1076 Source: Australian Wool Exchange Ltd. www.awex.com.au Darling Downs TW LW LY Wheat 333 322 245 Barley 330 315 226 Sorghum 334 322 202 Riverina Wheat 287 286 215 Barley 268 261 200 Sorghum* nq nq 205 *includes freight Source: Profarmer w/e Lambs TW LW LY 2"+ 813 813 600 950 950 706 1075 1075 713 1"-2" 850 850 600 1100 1100 850 1125 1125 875 0.5"-1" 675 675 450 875 875 675 1050 1050 775 New season 750 750 575 850 850 750 nq nq 800 Merino sheep (average 25 micron) 1.5"-2" 900 900 700 1000 1000 800 1100 1100 90024.1kg + 24.1kg + 16.1 -20kg 24.1kg + 16.1 -20kg 20.1 -24kg 20.1 -24kg 24.1kg + 20.1 -24kg 16.1 -20kg 20.1 -24kg 21/6/13 16.1 -20kg 20.1 -24kg 24.1kg + 16.1 -20kg Grain feed prices ($/tonne) Skin indicator (﹌/skin) MLA＊s NLRS Eastern Market Wool Indicator (﹌/kg) Category TW LF* LY 0-8kg nq nq nq 8.1-10kg 230 209 238 10.1-12kg 231 211 240 12.1-16kg 231 211 238 16.1-20kg 231 211 236 20.1kg+ 231 211 236 * LF = Last fortnight Goats OTH prices (﹌/kg cwt) MLA＊s NLRS Lamb slaughter is forecast to fall by 8%, to 300 around 19.5 million head, and production 10 down 7%, to 431,000 tonnes cwt in 2013-5 150 14. This projected fall is generated on the back of a lower opening number of lambs, 0 0 due to . and in the wake of . the very high slaughter in 2012-13 (21.2 million head). Source: ABARES ABARES also forecast adult sheep slaughter to fall in 2013-14, as tighter opening supplies, coupled with improved rebuilding conditions, are estimated to reduce sheep slaughter to around 6.3 million head, a 20% decrease from an estimated 7.9 million head in 2012-13. Reflecting the forecast fall in sheepmeat supply in 2013-14, ABARES estimates Australian lamb exports to decline by around 12% and mutton by 24% to 177,000 tonnes swt and 109,000 tonnes swt, respectively. As a result, the total value of sheepmeat export is also estimated to fall by around 11% to $1.4 billion in 2013-14. ABARES have forecast the weighted average saleyard price of lamb to increase 5% from 382﹌/kg cwt in 2012-13 to an estimated 400﹌/kg cwt in 2013-14. Likewise, the weighted average saleyard price for sheep is forecast to rise 14%, to 205﹌/kg cwt. MLA＊s NLRS Goat slaughter increases Eastern states goat slaughter, lifted 71% week-on-week. The public holiday early in the month, combined with rainfall, hindered goat harvest and caused all eastern states slaughter levels to decrease significantly. Victoria led the way this week, more than doubling goat slaughter week-on-week, while Queensland, NSW and SA increased 88%, 35% and 44% week-on-week, respectively. The recent tightening of supply, typical for this time of year, has placed increased pressure on export goat rates. MLA＊s NLRS Feeder rates improve as supply tightens Feeder cattle rates improved across both domestic and short fed lines this week, as supply in the southern states tightened following recent rain. While quality lines continue to come forward, the supply of suitable cattle will remain a concern if the wet conditions continue. MLA＊s NLRS w/e 21/6/13 TW LW LY TW LW LY Qld nq nq 20.80 nq nq 31.90 NSW nq nq 20.50 nq nq 33.17 Vic & SA -cow nq nq 23.00 nq nq 36.00 Vic & SA -ylg, ox, hfr nq nq 27.17 nq nq 39.83 Tick free Ticky TW LW LY TW LW LY Weight 23-32kg/hide nq nq 41.50 nq nq 27.25 32kg+/hide nq nq 49.63 nq nq 40.50 23-27kg/hide nq nq 57.00 nq nq 40.00 27-31kg/hide nq nq 62.17 nq nq 50.00 Wet blue hides (NSW,Vic & Qld) 221-280kg cwt141-180kg cwt Brine cured hides (Qld) Green hides Hide indicator ($/hide) MLA＊s NLRS For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeeklyand excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 4 Friday, 28 June 2013 meat & livestock weeklyInternational markets Friday, 28 June 2013 meat & livestock weeklyInternational markets Some improvement in US imported beef prices There was a small lift in the price of imported 90CL cow beef in the US this week, up 3US﹌ to 180.5US﹌/lb CIF (up 3.8A﹌ to 398.6A﹌/kg FAS), narrowing the gap between imported and domestic product. There is some indication that domestic lean grinding beef supplies will start to tighten in the coming weeks, with a notable improvement in pasture conditions since the beginning of May and a more positive outlook for feed crops, especially corn. US buyers have recognised the depreciation of the A$ as a positive, and if some stability returns to the currency over the next few weeks, it could encourage buyers to take a position. There is also less 80CL and 85CL beef being traded in the US, which should help support 90CL prices, with very little difference in price at the moment. At the fattier end of the spectrum, prices remain high, but bids are generally higher in other markets, keeping supply tight in the US. Cow and bull slaughter in the US has fallen to around year-ago levels, just under 130,000 head per week, which is expected to continue for the next two months, before increasing to around 136,000 head. NZ slaughter is also slowing into winter, while Australian beef exports to the US have also slowed through June . at the current rate they will reach around 16,600 tonnes swt, as trade continues apace to China, Taiwan and the Middle East. Japan foodservice sales brisk in May The Japan Foodservice Association reported that the sector registered improved sales in May, with customer numbers increasing across all categories, supported by an extended period of fine weather. Japan yakiniku restaurant sales All categories, except the pub/bistro Change % YOY tonnes swt 30 JF M A M J J A S O N D JF M A M J J A S O N D JF M A M Yakiniku sales Australian offal exports 3000 group, increased their sales from the same month last year, with yakiniku (Japanese/ 2500 20 Korean style barbecue), up 13.9% year-onyear), the Japanese style fast food (mostly 2000 10 gyudon beef rice bowl), up 9.8% and 1500 noodle, up 9.6%. 0 The Yakiniku segment, which is the major 1000 outlet for US and Australian offal in Japan, -10 500 registered the fifteenth consecutive monthly year-on-year growth, after many -20 0 months of struggle, especially after the 2013 2012 2011 March 2011 disaster and a series of food Source: Japan Foodservice Association, DAFF safety issues. Relaxation of the US beef import protocols in February this year positively influenced the trade＊s sentiments, while demand for Australian offal items has also been firm. Trade paper Gaishoku Nippo reported on the reinforced interest in beef tongue in specialised restaurants among the Japanese foodservice operators. Japan grassfed fullset price ! !! ! ! ! ! !! ! ! ! J F M A M J J A S O N D 450 500 550 600 650 700 A﹌/kg FAS 2012 2013 monthly five-year ave! 90CL cow price to US J F M A M J J A S O N D 250 300 350 400 450 A﹌/kg FAS 2012 2013 monthly five-year ave Export price watch Source: Australian trade, US trade Korean traders cautious Despite the approaching high consumption period of Chuseok, Korean traders were reportedly more cautious about the beef trade this week . primarily due to the current unstable wholesale market situation, slow demand from end- users and weaker Korean currency against the US dollar. Korean wholesale prices for imported beef were generally dearer this week. Prices for Australian short ribs and chuck roll rose another 2% each on last week, at KRW 11,500/kg and KRW 8,400/kg, respectively. Reflecting the recent steady rise in Australian short ribs prices, the average price for the first half of 2013 for short ribs reached KRW 10,931/kg . 28% higher than the first half of last year. Underpinned by lower supplies, US short rib prices were up 2% week-on-week, at KRW15,000/kg . hitting the highest prices since mid-October 2008. NZ short rib prices also rose 2% from the previous week, at KRW 10,200/kg. In contrast, Hanwoo carcase prices were down 1% on last week, at KRW 11,961/kg. For the first half of 2013 prices averaged KRW 12,040/kg . 9% lower than last year. On the back of increasing supplies of domestic pork, the pork carcase prices also fell 2% on last week, at KRW 4,708/kg. Major currencies around 4pm 27/6/13 TW LW LY US dollar 0.932 0.924 1.012 Japanese yen 91.07 89.50 80.39 Korean won 1071 1058 1166 UK pound 0.607 0.598 0.649 Euro 0.715 0.697 0.809 NZ dollar 1.191 1.177 1.272 Indonesia rupiah 9251 9175 9581 Source: Infoscan Japan TW LW LY Grassfed f/set 542 542 519 Shortfed f/set nq nq nq CF 85CL 383 388 nq US Cow 90CL 399 395 389 Trim 85CL 380 378 371 Knuckles - steer 545 538 478 Source: Trade Exchange rate Major demand indicators (A﹌/kg FAS) TW = This week, LW = Last week, LY = Last year w/e 21/6/13 TW LW LY 453 453 570 633 633 845 282 280 343 42 36 36 slaughter ('000 head)* * w/e 8/6/13 HRI leg (US﹌/lb) US sheep and lamb Source: HRI Buyers Guide, USDA US lambs 55-65lb (US﹌/lb dw) HRI rack (US﹌/lb) US lamb market For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 5 Friday, 28 June 2013 meat & livestock weeklycompetitor Friday, 28 June 2013 meat & livestock weeklycompetitor Brazilian cattle slaughter at record level - IBGE According to the Brazilian Institute of Geographic and Statistics (IBGE) quarterly survey, Brazilian cattle slaughter during the first quarter of 2013 increased 12.7% year-on-year, to 8.1 million head - the highest volume registered for the period since 2007. Beef production also rose, up 13.2% year-on-year, totalling 1.9 million tonnes cwt. Underpinning the rise in cattle slaughter was an increase across all regions in Brazil. The Midwest increased 17.5% year-on-year . with a highlight for Mato Grosso state, up 20.5%, remaining the major beef producer in the country. The Southeast region also rose significantly, up 18% year-on-year, followed by the North region (8%), South Brazilian cattle slaughter million head million tonnes cwt (2.3%) and Northeast (2.3%). Female 10 3 US cattle on feed report points to more beef later in 2013 The Cattle on Feed report released by the United States Department of Agriculture last week suggests that there will be more US beef available through the second half of 2013 than previously expected. While production is still likely to be lower than last year, more cattle were placed on feed during May than most analysts predicted, along with fewer cattle marketed, bringing the total male slaughter female slaughter production number of cattle in feedlots over 1,000 slaughter during the first quarter of 2013 head capacity to 10.74 million . level rose 3% year-on-year, accounting for 46.9% 2.5 8 with the five-year average at the beginning of June. of total slaughter. 2 According to IPCA/IBGE (Consumer Price 6 Index . Brazilian inflation official indicator) beef products deflated 0.89% during the first 4 three months of the 2013, while other animal proteins increased. For the 12 months to the 2 end of March, beef had the lowest price increase (up 2.15%) when compared to 0 1.5 1 0.5 0 There was a big increase in heavier cattle being placed on feed relative to light cattle . a reflection of high grain prices. Feeders heavier than 800lbs (363kg) lifted 20% on last year, while there was a 25% drop in the number of feeders under other animal proteins, which was also below 600lbs (272kg). The heavier cattle the general inflation index of 6.6% during the suggest more processing is likely to period. Source: IBGE occur through October, rather than right at the end of the year and early 2014. Russia to discuss beef access with the US Russia has agreed to meet with US officials in late June to discuss the outlook for resuming meat imports, after US beef imports were banned in February over the use of the feed additive Ractopamine. The outcome of the meeting is likely to determine any potential timetable for a return of US beef to the Russian market. The USDA＊s Food Safety and Inspection Service (FSIS), is expected to outline measures that the US would take to ensure that no meat produced using Ractopamine reached Russia. It is likely that this would include a list of enterprises certified under any potential program, which would mean that even if the US was to regain access, the number of US companies able to supply the market would be smaller when compared to pre ban levels. The US was previously a major beef supplier to Russia, with Russia importing 46,292 tonnes swt of US beef in 2012 (GTA). Importantly, for Australian beef exporters, the ban placed on US beef has been a catalyst for growth in Australian chilled beef exports to Russia in 2013. Australian chilled beef has traditionally competed directly with US chilled beef in the market, and with the ban in place Australian chilled shipments to Russia have reached record levels. Chilled exports, January to May, totalled 1,089 tonnes swt, a threefold increase year-on-year. TW LW LY A﹌/kg w/e 21/6/13 702 671 639 NZ lamb 17.5kg cwt 416 406 437 Source: NZX Agrifax NZ chilled export leg to EU NZ export lamb market TW LW LY w/e 8/6/13 US - total 648 595 655 year to date 13,974 13,326 14,771 US - cows 123 109 119 year to date 2,832 2,709 2,857 w/e 21/6/13 Uruguay - total 32 26 36 year to date 1,094 1,062 1,013 Source: USDA, World Beef Report TW LW LY w/e Bulls 296-320kg 323 327 304 Cows 170-195kg 239 240 226 Steers 295-320kg 333 336 303 Source: NZX Agrifax 28/6/13 TW LW LY 90CL fres h 199.5 198.8 222.0 Chucks 212.5 212.5 214.0 Choice beef cutout 197.7 199.6 196.2 5 mkt fed s teer (lwt) 121.0 121.0 116.5 CME feeder cattle (lwt) 137.3 136.6 153.2 Cutter cow carcas e (lwt) 113.0 112.0 121.0 Source: Urner Barry , USDA Cattle slaughter (＆000 head) NZ livestock prices (A﹌/kg) US beef price indicators (US﹌/lb) Competitor prices NZ OTH lamb and mutton prices JA S O N D J F M A M J JA S O N D J F M A M J 0 100 200 300 400 500 600 A﹌/kg cwt 17.5kg lamb 21kg mutton Source: NZX Agrifax 2011 2012 2013 US cattle prices J A S O ND J F M A M J J A S O ND J F M A M J 200 250 300 350 US﹌/kg lwt Feeder steer Choice steer Utility cow Source: USDA 20132011 2012 TW = This week, LW = Last week, LY = Last year For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 6 Friday, 28 June 2013 meat & livestock weeklyin focus Friday, 28 June 2013 meat & livestock weeklyin focus Currency cross rates the key Lamb cash incomes hit hard in 2012-13 . ABARES in many markets Average total farm cash income for slaughter lamb producing farms in 2012-13 is projected to decline by 19%, to $139,000 per farm, according to the latest ABARES The recent depreciation of the A$ against Australian lamb: Financial performance of slaughter lamb producing farms 2011-12 most major currencies has been welcome news for the Australian red meat industry. to 2012-13. Although down considerably on the previous year, the result for 2012 The depreciation will allow Australian beef 13 is still 13% above the 10-year average. The recently released report clearly to be more competitive in the global illustrates the impact of lower prices and tougher seasonal conditions during the marketplace. Since April, the A$ has past 12 months. depreciated 14%, trading as low as Slaughter lamb producers are defined as those farms that sell more than 200 lambs per 91US﹌ for the first time since September year. Specialist slaughter lamb producers are defined as those who, on average, earned 2011. more than 20% of farm receipts from the sale of lambs for slaughter in the three-year period ending in 2012-13. Currency movements Financial performance of slaughter Indexed (Jan 2009 = 100) For 2012-13, the increased number of lambs lamb producers $'000 Farm cash income Farm business profit A$ R$ AR$ UYP sold was more than offset by a reduction in average lamb prices. In the past year, the average price of lambs sold for slaughter 200 was estimated to be 25% lower, on the back of increased supply and lower finished 100 weights. As a result, receipts from lamb sales were estimated to have declined 22% on the previous year, to $80,000 per farm. 0 Lower prices are also expected to offset a larger number of adult sheep sold in 201213, with average adult sheep receipts per -100 farm expected to be $26,000, down 34% on 2011-12. In contrast, crops are expected to make up Source: RBA Source: ABARES 54% of total cash receipts of slaughter lamb However, it is important to view the producing businesses (650 ha sown to crop), at $303,000 per farm in 2012-13 . an increase of 5% on 2011-12. Along with lamb, beef cattle and wool sales are also likely changes in the currency of our major to finish 2012-13 below 2011-12 levels, at $52,000 per farm and $68,000 per farm, ＆cross rate＊ a crucial determinant of competitors at the same time, with this respectively. competitiveness in many markets. On average, specialist slaughter lamb producers were estimated to have performed Illustrating this importance has been the poorer than other producers in 2012-13, generally due to overall farming operations recent depreciation in the Brazilian real, being smaller. However, the smaller area sown to crop (170 ha per farm) had a large which has effectively acted to negate any influence on the bottom line, with crop receipts accounting for only 27% of total cash advantage Australia may have gained receipts (compared to 54% for other producers). As a result, the farm cash income for through the depreciation in our own specialist lamb producers was estimated to have declined by around 19%, to average currency in markets which we compete $62,000 per farm, 9% below the 10-year average. heavily with Brazil. Although receipts from slaughter lamb production are projected to decline in 2012-13, The Brazilian real has depreciated 9% very large-scale slaughter lamb producers (more than 2,000 lambs sold for slaughter) against the US dollar since the beginning are expected to continue to register the highest rate of return, excluding capital of 2013, and when compared to June appreciation in 2012-13, averaging 3.3%, compared with the average of all slaughter 2011, has depreciated 39%. In markets lamb producers of 1.7%. This is supported by a higher average farm cash income per where Australia competes directly with hectare, generated by larger-scale slaughter lamb production. Brazil, this cross rate is an important one. Although the recent fall in the Australian dollar is preferable to a situation in which Chinese meat consumption forecast to expand the Brazilian real depreciated while the Total Chinese meat consumption is anticipated to grow at 1.6% annually over the next Australian dollar held firm, the advantage decade . but lower than the 2.5% growth registered during the previous decade (retail gained by Australian exporters into these weight basis, OECD-FAO Agricultural Outlook 2013 . 2022). Driven by an increase in markets will be limited. pork and chicken consumption, the report suggests total meat consumption will For all these stories and the latest news online, log on to www.mla.com.au/marketnews increase by 7kg/capita through to 2022, taking China＊s total meat consumption to 54kg/capita. Chinese pork consumption is forecast to be at 34kg/capita, poultry at 14kg/capita, while beef per capita consumption is expected to reach 4kg/capita. The report also suggests that despite slowing population growth in China over the next decade, the rapid increase in the urban population will impact food demand (particularly for meat), underpinned by higher personal incomes. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 7 Friday, 28 June 2013 meat & livestock weeklyfeatures Friday, 28 June 2013 meat & livestock weeklyfeatures Korean imports of Australian beef up 2% in May Korean beef imports during May were down 2% year-on-year, at 20,301 tonnes swt (on a customs cleared basis), mainly due to lower imports from NZ (Korean International Trade Association). The monthly volumes of chilled and frozen beef contracted 2% each, year-on-year, at 3,480 tonnes swt and 16,821 tonnes swt, respectively. Despite the decline in May volumes, total imports for the first five months were the fourth largest imported volumes on record, at 108,947 tonnes swt. Imports of Australian beef during May increased 2% year-on-year, at 11,388 tonnes swt, made up of 2,813 tonnes swt of chilled beef (up 3% year-on-year), and 8,525 tonnes swt of frozen beef (up 2% year-on-year). US beef imports showed a slight year-on-year increase (1%), totalling 6,576 tonnes swt, with a 4% year-on-year rise in frozen beef (at 5,922 tonnes swt) offset by a significant drop in chilled beef imports, at 653 tonnes swt (down 21%). Increased demand from Japan for US beef has affected Korea＊s imports of particular cuts during the first five months of the year. The intake of US short ribs, for example, are 4% lower than the corresponding period last year, at 24,852 tonnes swt (quarantine cleared basis, Quarantine and Inspection Agency). Additionally, imports of US brisket have declined substantially since February, with May monthly imports down 72% year-on-year, at 525 tonnes swt, and imports for the first five months totalling 4,563 tonnes swt (down 30% year-on-year). As competition between Japan and Korea has increased for US product during the year, Korea sourced more chuck roll and brisket from Australia during May . at 2,957 tonnes swt (up 29% year-on-year) and 816 tonnes swt (up 43% year-on-year), respectively. While short rib imports from Australia increased 1% year-on-year during May, at 2,616 tonnes swt, the total volume for the first five months was still 5% lower than the corresponding period last year, at 11,367 tonnes swt, partly affected by higher interest from China. Australian beef market share increases in the EU Australian beef has increased its presence in the EU, with imported market share in early 2013 (Jan-April) at 7.56%, up from 6.58% in 2012. The increase in market share has come at a time when EU imports of beef have grown, with overall beef imports for the period increasing 19%, to total 65,731 tonnes swt (GTA). Brazil, traditionally the largest supplier of beef to the EU, dominated market share, accounting for 34% of imported beef in early 2013. Imports from Brazil totalled 22,493 tonnes swt, an increase of 58% year-on-year. The EU has also imported growing volumes of beef from Uruguay, with Uruguayan shipments totalling 15,111 tonnes swt, growth of 13% year-on-year and giving Uruguay a market share of 23%. Argentina and the United States also hold a significant portion of the imported beef market, with market share of 16% and 8% respectively. The growth in Australian market share has been driven by steady increases in the volume of grainfed beef shipped to the market. Australian grainfed beef exports totalled 2,856 tonnes swt in the five months to the end of May, more than double 2012 shipments for the same period. Less beef in US storage at the end of May A large drop in beef cuts (bone-in primals) in cold storage more than offset an increase in boneless beef stocks compared with last year, according to the United States Department of Agriculture＊s Cold Storage Report. Total beef in storage at the end of May was estimated at 478.5 million lbs (217,000 US meat cold stores - 31 May tonnes), down 4% on 12 months earlier, with million lbs 25 million lbs 800 beef cuts down 41%, at 41.7 million lbs (18,900 tonnes) and boneless beef up 2%, to 700 20 436.8 million lbs (198,000 tonnes). This 600 should result in an upside for US beef prices in coming months, especially with production 500 15 expected to slow in the short-term. 400 10 Pork and chicken stocks were noticeably 300 mixed, with very high demand for certain cuts in recent months. Pork belly stocks 200 5 were very tight, while hams remain readily 100 available. Chicken breast supplies were 0 slightly lower than last year, but wing stocks 0 lamb were up 121%, along with more whole Source: USDA＊s Cold Storage Report chickens and leg quarters. 5-year ave 2012 2013 beef pork chicken Japan debates TPP Japan is expected to attend the last two days of the 18th round of Trans Pacific Partnership (TPP) negotiations in Malaysia (to be held from 15 to 24 July), with Japanese stakeholders gearing up to strongly communicate their views on potential impacts of Japan＊s participation. From the opposition side, several prefectural branches of Japan Agricultural Cooperative (JA) have already published calculations of the potential damage a trade liberalising TPP outcome will have on agricultural products . including the JA Nagao branch, which has estimated a fall of A$1.13 billion per year in reduced agricultural production. The heated debate in Japan on the TPP, combined with political sensitivities associated with both the forthcoming Australian federal election and an upper house election in Japan, has added further uncertainty regarding the timing of future Australia-Japan Free Trade Agreement discussions. An outcome on beef remains as one of crucial items still to be concluded in the bilateral talks. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 8 Domestic Indicators market statistics Friday, 28 June 2013 meat & livestock weekly meat & livestock weekly TW = This week, LW = Last week, LY = Last year Category definitions are as per tables on front page. TW LW LY 113 118 132 126 131 152 197 199 209 174 172 211 Heavy cow Heavy yearling Feeder yearling Pastoral cow w/e 21/6/13 TW LW LY Domestic Steers 280-350kg 179 177 205 Heifers 280-350kg 164 159 193 Export Shortfed 100-120 DOF 168 166 192 Mediumfed 120-220 DOF 181 179 203 Longfed 220+ DOF 178 178 213 Paddock sales TW LW LY Light steers (260 - 360 kg) Darwin 150 nq 175 (260 - 360 kg) Broome nq nq nq Light heifers (260 - 360 kg) Darwin 125 nq 160 (260 - 360 kg) Broome nq nq nq Export wethers (A$/head) Muchea 71 79 93 Source: MLA's NLRS, Landmark TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY Pork DF 45 -60kg nq nq 340 nq nq 308 nq nq 274 nq nq 323 nq nq nq Bacon GI 60 -75kg nq nq 287 nq nq 265 nq nq 269 nq nq 273 nq nq nq Backfatter sows 90kg+ nq nq 130 nq nq 103 nq nq 133 nq nq 133 nq nq nq SANSW Qld Vic WA TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY Restocker/feeder ($/head) 55 60 56 62 69 65 64 66 55 57 52 68 nq 55 69 M erino lamb (﹌/kg cwt) 414 391 350 412 406 329 413 404 378 352 363 428 nq nq nq Light lamb (﹌/kg cwt) 403 420 413 412 421 371 416 405 374 378 367 455 402 314 422 Trade lamb (﹌/kg cwt) 488 499 431 493 490 391 475 475 419 404 382 476 456 418 404 Heavy lamb (﹌/kg cwt) 521 511 400 524 504 371 489 482 392 394 398 439 468 458 404 M utton (﹌/kg cwt) 278 299 316 274 301 267 271 287 279 225 228 306 272 271 nq Vic NSW SA WA Tas TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY Medium trade lamb 500 491 439 496 491 446 510 500 425 420 410 470 445 435 410 nq nq nq Heavy trade lamb 500 490 431 494 490 450 510 500 425 420 410 470 445 435 410 nq nq nq Heavy lamb 504 494 431 485 480 430 510 500 425 413 403 458 445 435 400 nq nq nq Mutton 253 248 294 247 241 270 250 250 260 200 187 230 240 160 240 nq nq nq Vic NSW SA WA Tas Qld TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY Trade steer (﹌/kg lwt) 165 156 194 186 194 207 198 194 198 183 182 204 162 nq 187 (﹌/kg cwt) 304 284 369 345 357 384 361 356 364 339 331 371 300 nq 346 Medium steer (﹌/kg lwt) 146 146 170 154 164 181 172 164 176 nq 190 172 nq nq 179 (﹌/kg cwt) 272 265 323 291 305 337 318 308 329 nq 339 313 nq nq 344 Heavy steer (﹌/kg lwt) 162 162 176 184 187 191 177 185 190 181 150 nq nq nq nq (﹌/kg cwt) 291 289 315 334 342 346 326 339 346 330 275 nq nq nq nq Medium cow (﹌/kg lwt) 111 105 132 111 109 128 123 120 132 127 108 132 105 99 nq (﹌/kg cwt) 225 214 267 235 230 271 258 247 269 254 225 272 219 205 nq Feeder steer (﹌/kg lwt) 174 174 203 181 176 200 166 166 181 165 167 197 nq nq nq Qld NSW Vic SA Tas TW LW LY TW LW LY TW LW LY TW LW LY TW LW LY Trade steer 305 305 310 303 303 321 325 325 345 310 310 330 nq nq nq Medium steer 283 280 303 296 296 318 333 333 340 nq nq nq 332 305 335 Heavy steer 293 290 314 304 304 330 328 323 335 nq nq nq 332 305 335 Medium cow 235 233 274 229 227 277 234 231 263 235 225 258 245 242 283 EU steer nq nq nq 330 330 340 nq nq nq nq nq nq nq nq nq * Qld quotes are for Southern Queensland only Qld* NSW Vic SA Tas Saleyard sheep and lamb indicators Saleyard cattle indicators Over the hooks cattle indicators (﹌/kg cwt) MLA＊s NLRS Over the hooks sheep and lamb indicators (﹌/kg cwt) Over the hooks pig indicators (﹌/kg cwt) MLA＊s NLRS MLA＊s NLRS MLA＊s NLRS MLA＊s NLRS Live export price quotes (﹌/kg lwt) Feeder cattle indicators (A﹌/kg lwt) NOTE:NOTE:NOTE:NOTE:NOTE: Feeder cattle prices are for cattle purchased for direct entry into feedlots. MIN MAX AVG nq nq nq 320 410 365 320 410 365 210 225 218 Grassfed yearling Grainfed yearling MSA yearling Medium cow WA Over the hooks cattle indicators (﹌/kg cwt) MLA＊s NLRS WA Saleyard cattle indicators (﹌/kg lwt) MLA＊s NLRS NOTE: WA over the hooks cattle indicator now as per table on bottom of this page. NOTE: WA saleyard cattle indicator now as per table on bottom of this page. NOTE: Tallow price table has moved to page 4. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeeklyand excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 9 market statistics Friday, 28 June 2013 meat & livestock weekly meat & livestock weekly Japan market US domestic /export markets TW = This week, LW = Last week, LY = Last year Steer ﹠/kg TW LW LY Wagyu (A5) 2081 2110 1957 Dairy (B3) nq nq nq F1 (B3) 1187 1188 1098 Dairy (B2) 525 736 611 F1 (B2) 1093 1056 1005 Source: Shokuniku Sokuho TW LW LY Chilled grassfed fullset US﹌/lb 246 244 257 A﹌/kg 542 542 519 shortfed fullset US﹌/lb nq nq nq A﹌/kg nq nq nq Frozen chuck/blade US﹌/lb nq nq 200 A﹌/kg nq nq 406 thick flank US﹌/lb nq nq nq A﹌/kg nq nq nq CF 85CL US﹌/lb 175 175 nq A﹌/kg 383 388 nq topside US﹌/lb 235 233 233 A﹌/kg 526 525 477 silverside US﹌/lb nq nq 200 A﹌/kg nq nq 406 brisket US﹌/lb 186 185 200 A﹌/kg 409 411 406 A﹌/kg FAS, US﹌ /lb C &F# S ou rce: Au st rali an beef trade TW LW LY﹠/kg spot, US﹌/lb C&F* TW LW LY From Aust ralia chilled grass fed ﹠/kg 865 865 725 fullset US﹌/lb 272 274 278 shortfed ﹠/kg 980 980 900 fullset US﹌/lb 309 312 348 midfed ﹠/kg 1165 1155 1090 fullset US﹌/lb 369 369 424 longfed ﹠/kg nq nq nq fullset US﹌/lb nq nq nq grass fed navel ﹠/kg 660 660 670 end brisket US﹌/lb 205 207 256 grass fed ﹠/kg 765 765 630 chuck roll US﹌/lb 239 241 240 shortfed navel ﹠/kg 690 690 805 end brisket US﹌/lb 215 217 310 shortfed ﹠/kg 815 815 755 chuck roll US﹌/lb 255 258 290 Frozen brisket ﹠/kg 665 665 565 US﹌/lb 210 212 219 chuck/blade ﹠/kg 725 705 635 US﹌/lb 230 226 247 cow meat ﹠/kg 645 660 520 (85CL) US﹌/lb 204 211 201 From U S chilled chuck rib ﹠/kg 1650 1650 1300 US﹌/lb 527 532 509 short rib ﹠/kg 2350 2350 2050 US﹌/lb 755 762 809 steak ready ﹠/kg 2150 2150 1850 US﹌/lb 690 697 729 Frozen chuck roll ﹠/kg nq nq nq US﹌/lb nq nq nq short plate ﹠/kg 680 680 1050 US﹌/lb 215 217 414 Sou rce: Chikusan Nippo ﹠/kg spot, US﹌/lb C& F* Imported beef price in Kanto wholesale market Beef export prices to Japan Imported offal prices in Kansai wholesale offal market Domestic beef carcase prices . Tokyo TW LW LY Frozen Bull 95CL US﹌/lb 194.8 194.8 202.0 A﹌/kg 432.2 435.9 412.2 Cow 90CL US﹌/lb 180.5 177.5 191.5 A﹌/kg 398.6 394.8 389.4 CC/CF 85CL US﹌/lb 175.0 173.5 183.5 A﹌/kg 385.6 385.3 372.0 Shank 90CL US﹌/lb nq nq 189.0 A﹌/kg nq nq 384.0 Trim 85CL US﹌/lb 172.5 170.5 183.0 A﹌/kg 379.7 378.2 370.9 Trim 80CL US﹌/lb 166.0 167.0 157.5 A﹌/kg 364.4 369.9 315.5 Trim 75CL US﹌/lb 150.5 150.0 nq A﹌/kg 327.8 329.4 nq Trim 65CL US﹌/lb nq 121.5 nq A﹌/kg nq 261.6 nq Chucks 85CL US﹌/lb nq nq nq A﹌/kg nq nq nq Outside flats US﹌/lb nq nq nq - steer A﹌/kg nq nq nq Knuckles US﹌/lb 242.5 237.5 232.5 - steer A﹌/kg 544.9 537.6 478.5 Ins ide cap off US﹌/lb 245.5 246.5 252.5 A﹌/kg 552.0 559.0 521.9 US﹌/lb CIF, A﹌/kg FAS Source: Steiner Cons ulting Group Beef export prices to the USＥ US cattle futures US﹌/lb lwt Contract TW LW Live cattle Feb-14 128.50 127.35 Apr-14 129.63 128.63 Jun-13 121.28 120.48 Aug-13 122.18 120.40 Oct-13 125.40 124.03 Dec-13 127.38 126.28 From Australia frozen tongue ﹠/kg 1300 1300 1150 (swiss cut) US﹌/lb 511 516 555 thick skirt ﹠/kg 645 645 525 US﹌/lb 249 252 248 thin skirt ﹠/kg 645 645 575 US﹌/lb 249 252 272 mountain ﹠/kg 1575 1575 1350 chain tripe US﹌/lb 700 707 737 From NZ frozen tongue ﹠/kg 1025 1025 925 (swiss cut) US﹌/lb 401 405 444 F rom Mexico frozen tongue ﹠/kg 1250 1250 1150 (swiss cut) US﹌/lb 491 496 555 From US frozen mountain ﹠/kg nq nq nq chain tripe US﹌/lb nq nq nq Source: Shokuniku Sokuho Prices are indicator only Feeder cattle Jan-14 153.95 150.20 Mar-14 154.60 151.50 Apr-14 155.60 152.25 May-14 156.20 153.25 Korea market Aug-13 148.93 144.65 Sep-13 151.03 147.00 Oct-13 152.48 148.93 Nov-13 153.78 150.35 won/kg TW LW LY Korean domestic wholesale* Hanwoo carcas e 11961 12133 12000 beef cattle carcase 7202 6941 7918 pig carcase 4708 4827 4942 A u stralian wh olesale brisket deckle off 7300 7300 7000 rump 8500 8400 nq chuck roll 8400 8200 7600 short rib 11500 11300 nq US wh olesale grainfed chuck roll 8000 8000 7400 grainfed s hor t r ib 15000 14700 10200 Source: Korean trade, HKJM Korean wholesale prices Source: CME * Export price equivalent (C&F) after removing from the wholesale price import tariffs, indicative landing charges, marine insurance and other import costs (converted into US﹌/lb). Ｅ Indicative price average of Australian and New Zealand products. #Australian export prices to Japan are converted from US﹌/lb C&F to A﹌/kg FAS terms using the $A/$US exchange rate, converting from lbs to kgs and calculating the average freight rate to Tokyo Port (chilled = A﹌40/kg; frozen = TW LW LY 199.5 198.8 222.0 188.0 189.5 205.0 162.0 165.0 161.0 97.0 96.0 54.0 212.5 212.5 214.0 255.0 255.0 260.0 200.5 199.5 192.5 220.0 220.0 230.0 outsides Source: Urner Barry insides knuckles 90CL 85CL 75CL 50CL Boneless beef US﹌/lb - Fresh 2pc b/less chuck US domestic prices Australian export prices to the US are converted from CIF to FAS terms by calculating an average shipping rate to the Port of Philadelphia (freight plus surcharges for a 20ft reefer), insurance, the A$/US$ exchange rate and the conversion from lbs to kgs. A﹌30/kg). Values are market indicator only based on MLA survey with Australian trade. CL = Chemical Lean . lean meat as a % of total meat. For subscriptions and information please phone 1800 023 100 or visit www.mla.com.au/marketinformation or www.mla.com.au/nlrs 使 Meat & Livestock Australia, 2013. ABN 39 081 678 364. MLA makes no representations as to the accuracy of any information or advice contained in Meat & LivestockWeekly and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. ISSN 1448-0387 10