ABS data points to cattle herd destock and record lamb slaughter rates

The Australian cattle herd is undergoing a destocking phase after the female slaughter rate rose to just over 53 per cent in the June quarter, according to fresh data from the Australian Bureau of Statistics.

The ABS’ latest quarterly livestock slaughter and meat production statistics showed the June quarter was the second consecutive quarter to have an FSR above the 47 per cent benchmark, which indicates a destocking period for the Australian cattle herd.

The FSR increase also coincided with a 17 per cent rise in cattle slaughter overall.

2.1 million head were slaughtered in the June quarter — the highest numbers since 2019.

Meat and Livestock Australia senior market information analyst Erin Lukey said the FSR increased across the whole country.

“Thanks to four consecutive years that have allowed for rebuild and maintenance, the Australian cattle herd is high when compared to historic averages,” she said.

“Cow retention over this time has created a large female herd, which are now ready for turnoff.

“Saleyard prices remain well above year-ago levels, as strong demand for Australian beef in the global market helps to maintain confidence as production rises.”

The rise in cattle slaughter has also led to a 14 per cent rise in beef production from the first quarter of this year, marking the largest quarterly beef production total since the second quarter of 2015.

Lamb slaughter also lifted to 7.2 million head over the June quarter, marking Australia’s highest lamb slaughter figures on record.

Combined sheep and lamb slaughter rose 2 per cent from 2024’s first quarter.

“For the financial year, 27.5 million lambs were processed, making the 12-month period the largest on record, and 25 per cent above the five-year average,” Ms Lukey said.

She said Australia’s sheep flock had changed “significantly” over the last 50 years.

“A move towards meat breeds, and more recently to shedding animals, has opened the door to a new way of production,” she said.

“The flock is operating in a new normal, with more lambs being grown, leading to more production.”