In this week’s survey by Meat and Livestock Australia, the eastern states slaughter of beef cattle has returned to the higher levels of 145,000-plus head achieved in the week before ANZAC.
While this was not entirely unexpected with the increased shift evident at major northern processing plants, the rise in adult female cattle kill being processed throws further doubts on the nation's herd rebuilding efforts.
The increase in the female slaughter is up 4.6 per cent in the past five weeks, influenced by a higher turn-off of females on the back of poor seasonal conditions endured across most of the southern states.
With the female kill component now running at an average 47.5pc in the big number states of Queensland and New South Wales, where these female slaughter figures are collected, it is an industry-recognised fact any number above 46pc represents a decline in the country's herd size.
On another note, Stock & Land this week took the opportunity to meet with representatives of the JBS Southern management at its Brooklyn plant to discuss a wide range of industry issues.
One of which was the transparency in cattle and beef markets slammed by the ACCC this week. JBS chief operating officer, Sam McConnell, declined to comment on the statement.
"As a company, we have paid the highest prices in history over recent years," Mr McConnell said.
"We pay prices well above quoted market valuations to all of our producers who deal directly with us and meet our specifications.
“Our grids are open, they are broad, and we provide feedback - we cannot be any more open."
JBS livestock manager, Steve Chapman, said the problem with the industry was more about the reporting of prices and its accuracy, as well as the hold the saleyards system had as the defined price setting mechanism.
“The industry has changed with advent of farm assurance, direct selling and chiller assessment, where we now see the best cattle from the best producers bypassing the saleyards and coming direct to processing plants," Mr Chapman said.
“These sales are not being reported with any accuracy, and producers selling direct are getting prices better than the saleyards, which makes the ACCC inquiry misdirected."
On the matter of setting price, Mr Chapman said rates were determined by supply and demand, saleyard prices as a base commodity plus premium, competitors' prices, as well as a reflection of the value returned by the sale.
“What we try not to do is have severe fluctuations in our price grid which doesn’t serve our relationship well with our aligned producer suppliers," he said.
JBS southern plants are at Bordertown, SA, Longford, Tas and Scone, NSW.