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TheBeefSite Newsletter - 9 October 2013

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TheBeefSite
Wednesday 9th October 2013.
Michael Priestley - Editor

Michael Priestley
Editor


Zilmax Ban and Tight Supplies to See Australia Take Reins

Agribusiness experts have predicted that Australian cattlemen will take the lion’s share of emerging market trade in the coming months while US cattle supplies remain tight.

Rabobank’s third quarter report for the global beef industry has predicted a demand ‘surge’ across Asia as imports respond to a demand increase in the advent of the Chinese New Year in February.

The outlook has summarised that, after extensive liquidation, the additional complication of Zilmax will inevitably lower US beef supply further, allowing Australian exporters to profit, ‘instead of the US market’.

On the subject of Zilmax, the report said: 'The ongoing saga surrounding the use of the medical supplement beta-agonist in the US will negatively impact the US beef supply and therefore global beef prices in the near future.'

The combination of the most effective beta-agonist being taken off the market and a significantly smaller feedlot inventory means the US could not only take a back seat in exports but also offer trade to Australian exporters.

Australian beef imports to the US lifted 34 per cent last year in response to a demand rise for manufacturing beef.

Last year, contraction in the Canadian beef herd and higher domestic demand meant that US importers had to turn to options further afield, and an imports rise of eight per cent.

This returned Australia to its place as the largest US beef supplier, according to Meat and Livestock Australia (MLA).

MLA analysts say that, after a four-decade low in 2011, Australian exports, along with beef from New Zealand and Mexico, helped to ‘more than offset the fall in volumes of Canadian products’, which plummeted 22 per cent.

Meanwhile, the global cattle picture is strengthening after two years of 'steady decline'. Rabobank’s Global Cattle Price Index has shown a bottom to the world cattle market, according to Rabobank analyst, Albert Vernooij.

Mr Verjooij said that the picture is brighter into 2014 but that hinges on tight supplies and demand staying strong.

“We expect further upside for the global beef market for the remainder of the year and into 2014,” he said. “Looking forward, the main question in many regions is likely to be where to source sufficient beef supplies, given tight availability and increasing global demand.”

Mr Vernooij added that higher prices will probably hit the consumer: “Globally, this will support strong prices, which might be difficult to forward to the consumers. Nevertheless, it is positive that prices of competing proteins are also expected to remain elevated, limiting competition.”


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This Week's Articles and Analysis

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The Welfare Debate 2: Boehringer Ingelheim Welfare Forum Sparks Debate Over Veterinary Role in Promoting Welfare
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Company News

Organic Farmers, Producers Have New Option for Chelated Trace Minerals
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Market Reports

EBLEX Cattle Weekly - 4 October 2013

Global Beef Industry News

   United States

South Dakota Blizzard: The Perfect Storm?
Daily Dairy Trading: Traders Pressure Butter Over Four Cents Lower
Cattle Futures: Gains Across Short Term Contracts, Tuesday
Ag Industry Moves Forward Despite Government Shutdown
Weed Scientist: Control Poison Hemlock in the Fall
Govt Unable to Respond to Distress in Livestock Industry
Daily Dairy Trading: Bidders Push Cheddar Barrels and Blocks Lower, Monday
Cattle Futures: Trading Ends Lower After Choppy Trade, Monday
Uncertainty in Cattle Markets Following US Government Closures
Weekly Cattle Summary: Cattle Up, Corn Down and the USDA Freezes Reports
Stalled Vaccine Delivery to Hit Livestock Sector
Cattle Futures: Live Cattle Finish Higher in All But October Contract, Friday
Managing Volatility in Cattle
CME: Cattle Closed Lower on Thursday
Congressional Report Touts Importance of Agriculture Exports
Training Offered on Re-building Beef Herd
NFU to Speaker: Farm Bill is in Your Hands
AFBF Expresses Frustration Over Farm Bill Expiration
Meat Inspection Unaffected by US Budget Stalemate
CME: Government Shutdown Hits Cattle Market Information
CME: Cattle Futures Closed Lower Wednesday
US Partisan Politics Prolongs Uncertainty for Farmers
Farmers Need Help to Plough Through New Food Safety Regulations
CME: Effects of Financial Shutdown on Dairy, Livestock Products
How Does the US Health Reform Affect Farmers?
Cattle Futures: October Cattle Settle Lower With Deferred Contracts Mixed, Tuesday
Age of Dam Affects Maternal Antibodies in Calf

   Global

FAO Calls on Countries to Adapt to Food Price Volatility
FAO, IFIF Address Sustainability, Feed Safety and Food Security
Food Dialogues: Animal Welfare - Beyond the Hype
Can Science and Technology Meet Global Food Production Needs?
FAO Food Price Index Continued to Fall
Grants to Be Released for Ecology and Evolution of Infections
Jim Wyckoff's Morning Report: Anxiety Meets US Market Place

   United Kingdom

Isotope Analysis to Ensure Scotch Beef Provenance
Medicines Alliance Appoints New Chairman
Committee Links Farm Assurance Schemes with Animal Welfare
New Cattle Without New Disease
Heifers Worth 18 Per Cent More As Numbers Remain Tight
NFU's Back British Tour Gains Traction at JCB
Farmers Given Chance to Criticise Veterinary Authority
Weather Has Big Impact on Supply Chains
All Must Seize Policy Window of Opportunity, Says NFUS
UK Analysis Finds Negligible Residues
UK Has New Code for Veterinary Medicine Promotion
NFU's Back British Tour Picks Up Morrisons Pledge
Call for Papers for Animal Welfare Conference
British Livestock Sector Capable of Reducing GHG Emissions
Fifty Per Cent of Buildings Are Not Fit For Purpose
Farmers Told to Slaughter 'Persistently Infected' Bovine Viral Diarrhoea Cattle

   Germany

New Meat Curing Process Breaks Retail Sector

   Italy

IFIF Re-elects Chairman and Board of Directors

   Netherlands

Researchers Combine Food Security Knowledge

   Canada

Wolves Cause Cattle Losses in Saskatchewan
Vets Push On-farm Biosecurity
Farmers Should Focus on Food When Communicating with Public
Canada Assesses Meat Buying from Argentina

   Czech Republic

Czech Farmers To Receive Flood Compensation

   European Union

Commission Urged to Deliver New Framework for Animal Welfare Law
Danish Livestock Need Most Water in EU
Agriculture MEPs Endorse CAP Reform Deal
Weaker Euro and Strong Seasonal Demand Dictate British Beef Markets

   Brazil

Second Stage of FMD Vaccination Takes Place in Roraima
Global Most Sustainable Companies List Includes BRF

   Denmark

Aarhus University Appoints New Professor in Animal Science

   New Zealand

US Government Shutdown Warning to NZ Farmers
Irrigation Keeps Dairy Economy 'Ticking'

   Australia

Coalition Targets Improving Indonesian Relations and Biosecurity
Cargill Agrees to Buy Beef From Down Under

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