Victorian processors faced a challenging year, facing cattle shortages because of drought, then wet weather.
JBS southern chief operating officer Sam McConnell said store markets were now driving prices, after a wet spring.
“It’s been a year we’ve never seen before – it started off as very dry, numbers were back, and we had record pricing,” Mr McConnell said.
“The world has never seen grass fed cattle, at these levels.” That was followed by a mild winter, then “pretty much record rains”.
The main challenge, in the new year, was cheap American beef, pork and poultry.
“They will pound the Japanese and Korean markets, some of those stronger Asian markets, and you have got Brazil, which now has access to China, they have taken a big slice of that pie.”
But he said JBS continued to work closely with its end users, to understand their needs, particularly in the production of its Great Southern rang.
He said it was likely the Farm Assurance program, which currently involved 2500 producers, would be expanded.
Mr McConnell’s concerns about the challenges which faced the industry were echoed by Robert Radford, Radfords Meats, Warragul.
“It’s bee a tough year, it doesn’t matter what part of the industry you are in,” Mr Radford said.
“There was water everywhere, and we couldn’t get stock out to markets, or out of feedlots, but I think we are through the worst bit now.”
The issue facing processors at the end of the year was the abundance of hay and silage, the complete opposite to the beginning.
“The biggest concern is getting cattle that are not too fat and heavy for the domestic market, that’s going to worry us in the coming months,” Mr Radford said.“It’s not always the answer to get more weight in cattle, if the cattle are over fat, they will be heavily discounted.”
It was also a year, in which smaller works announced upgrades.
In Trafalgar, the part-owner of Victoria Valley Meat Exports, Peter Polovinka said he would be using the Christmas break to put a new plant into the factory.
While in Kyneton, Hardwicks Meat Works has spent $5.9 million, in upgrading its facilities.
The completed project included a new boning room, a cold storage facility and an expansion of the beef and lamb processing floors.
