Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 10 February 2016

Meat production

As promised at the weekend, a quick look at the final livestock and meat figures for 2015.

Total livestock slaughtered over the year remained flat at 55 million.

Total red meat production volumes were also flat year-on-year at 3.6 million tonnes, although this represents an increase of around 15 per cent since 2011.

The main producers by tonnage were Queensland (36 per cent), Victoria (24 per cent), and New South Wales (22 per cent).

According to a report from big Dan Petrie of Bloomberg yesterday, the big uplift since 2011 has largely been driven by exports to China, with beef sales rising sixfold over the past three years. 

The lower dollar has also seen the price for volume shipped jump by 37 per cent in only 12 months, a point which I put into some context back in November from trawling through the International Trade figures.

China is expected to eat another 2.2 million tons of beef per year by 2025, while earnings from beef exports totalled $15 billion last year, representing another important aspect of Australia's challenging transition away mining.