Territory Stories

Year in review 2016-2017, Northern Territory Cattlemen's Association



Year in review 2016-2017, Northern Territory Cattlemen's Association


Northern Territory Cattlemen's Association yearbook; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Livestock -- Northern Territory -- Periodicals; Beef cattle -- Northern Territory -- Periodicals; Ranches -- Northern Territory -- Periodicals

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Northern Territory Cattlemen's Association

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South East Asian Markets I think it will lead to a significant opportunity for Australian breeders in Indonesia. Qurban is a religious festival of slaughter that happens in Indonesia and is another elephant in the room. In Central Java theyre running out of cattle. Qurban kills about 300,000 head of bulls minimum in one day. Ramadan and Lebaran see probably the another 300,000 500,000 more slaughtered again, mostly bulls. For the rest of the year, pretty much all thats left is the breeder herd, then they get killed. Vietnam The Vietnamese market is very price sensitive, Table 1 shows the annual and daily income compared to the cost of a kg of beef. In Australia the cost of beef is about 8% of the average wage, in Vietnam its 97%. This means that any increase in price is felt very quickly and the market is very resistant to it. The main competition for Australia in Vietnam is central and south America there are a lot of great cattle over there, but its a very long way for them to travel and the freight is too expensive. Columbia is foot and mouth free and they are already negotiating with Vietnam, although their freight costs still do not add up. Mexico has 16 million head of cattle and is also foot and mouth free. There are some massive processing plants in Mexico; one of which is located 600km from the uS border and is the biggest processing plant in the world with a capacity of 300,000 fed every day. However, these markets are not yet a real competitors to Australia because of the distance. Southern Africa is also a potential competitor - its foot and mouth free in most regions, the only area that isnt officially free is the Kruger National Park. Again, the freight cost is in their way. India have 115 million dairy buffalo, which is astronomical. Indian beef is a bi-product of the dairy industry and consists of cull cows, draft bulls and young males. Buffalo beef production is at about 4.2 million tonnes (about 20 million head), they export about 2 million tonne, the rest is eaten inside the country. There are 180 million muslims in India and 30 million Christians thats over 200 million meat eaters. The greatest threat that I see in the region is the maritime boundary of China; the legal boundary is very different to what they claim is Chinese territory. In summary it all comes back to basic supply and demand. By and large the world supply is static, and the worlds demand, dominated by Asia, is growing. Its likely to grow far faster than anyone will be able to keep up with. The prospects for the worlds most efficient beef industry Australia is the best theyve been for 40 years and were currently in a world economic slump. I think its a pretty safe bet that the Australian beef industry is looking forward to a very good century. Table 1: Annual and daily income vs cost of beef CONTACT FARMWORLD NT FOR A REAL DEAL MASSEY FERGUSON, MF, the triple-triangle logo is a worldwide brand of AGCO. 2017 MASSEYFERGUSON.COM.AU FARMWORLD NT PTY LTD 28 Vereker Street, Humpty Doo NT 0836 Ph: 08 8988 9411 Mob: 0417 833 894 E: farmworldnt@ozemail.com.au MF 5600 SERIES 85 120 HP THE ULTIMATE LOADER TRACTOR Fully integrated loader system from factory Unrivalled visibility due to the steep nose bonnet design and Visio roof option Proven Dyna-4 transmission with Autodrive allows automatic shifting from 1st to 16th gear NTCA YEAR IN REVIEW 2016/17 87

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