Expanding Beef Processing Capacities Drive Australia's Rising Slaughter Rates
Recent increases in beef processing capacity in Victoria, South Australia, and southern regions of NSW are driving this year’s expanding national slaughter, which currently averages around 140,000 head per week. Statistics from recent weekly slaughter reports highlight a disproportionate rise in throughput from southern states this year.
For instance, Victoria’s throughput last week surged by 60% compared to the same period last year, adding an additional 8,400 head per week. The two preceding weeks also showed substantial increases of 43% and 59%, respectively, over their respective prior-year periods.
South Australia's trend, while somewhat erratic, showed a 51% increase in kills for the week ending July 5 compared to the same week last year.
In contrast, Queensland’s processing expansion has been more modest, with increases of 14%, 17%, and 15% in the past three weeks compared to the previous year. However, Queensland still accounts for approximately 45% of the national weekly kill.
Southern processor cattle buyers are facing challenges in sourcing adequate numbers locally and are now purchasing record numbers of Queensland and Northern Territory cattle to supplement their kills.
An article published by Beef Central last May speculated that increased southern processing capacity could draw more northern cattle southward.
According to a livestock manager from a large multi-site, multi-state processor, the presence of southern processors in northern regions may transition from seasonal opportunism to a more permanent fixture.
Since early last year, at least six major beef processing upgrades, refurbishments, rebuilds, or repurposing projects have unfolded in a region spanning eastern South Australia through Victoria and southern NSW. Some projects are complete, others have finished initial stages of multi-stage processes, and some are still underway.
Several contacts noted that this expansion doesn’t solely represent new business but includes facilities restoring previous capacities that had been dormant due to low livestock supply, trading conditions, fire damage, or other factors.
AMG Cootamundra has recently upgraded its facilities and is now processing around 500 head per day, with plans to ramp up to 1,000 per day (5,000 per week). Similarly, TFI Murray Bridge is gradually increasing capacity towards 1,200 head per day following reconstruction.
Bindaree Monbeef has revived a processing plant near Cooma, currently handling 150-180 head per day, with ambitions for significant production increases. Greenham Tongala has expanded its operations to process about 1,050 head daily, focusing on quality beef production.
Elsewhere, EC Throsby has revitalized the former Hilltop Meats site at Young, NSW, enhancing hot-boning processing capabilities.
A source involved in one of these projects emphasized that companies are pursuing diverse cattle types, including grain-fed programs, hot-boned manufacturing beef, and higher-quality grass-fed steers.
Source https://www.beefcentral.com/
