Tracking yield weighted Australian beef retail prices and producer share

The surge in Australian young cattle prices and the competition from other protein, particularly chicken, has seen average retail beef prices tracking at levels which see the estimated Australian producer share climb to previously unseen levels in our records.

In order to reflect a realistic average retail beef price, a major supermarket weekly catalogue is used to generate a carcase yield weighted price. This is tracked over time and a producer share is calculated by comparing the carcase weight retail price with the Eastern Young Cattle Indicator published by Meat & Livestock Australia Ltd.

Colombia sees a 3.4% drop in Q2 2016 cattle slaughter

During the second quarter of 2016 , 931,943 cattle were slaughtered , representing a variation of -3.4% compared to the same period of 2015 where 964,838 head were slaughtered and a variation of -1.3% was recorded. Slaughter of male calves showed a variation of -9.1% and -0.9% respectively, while the slaughter of females had a variation of 0.5%. In turn, the slaughter of cattle destined for export registered a variation of 222.9% from 7,838 heads in the second quarter of 2015 to 25,305 heads in the second quarter.

It is notable that there was a substantial increase in cattle slaughter for export from Colombia.

By department , the biggest shares in the slaughter of cattle in the second quarter of 2016 were recorded in Antioquia (17.9%) with 167,124 head, Bogotá1 (16.6%) 154,933 head, Santander (7.8%) 72,851 head, Valle del Cauca (6.5%) Meta heads and 60,175 (5.8%) 54 238 head.
Detailed report is here. (Spanish) . The terms of slaughter intended for export presented a variation of 209.0%, 53,692 head were slaughtered in the second quarter of 2016 and the same period last year 17,377 head.
The slaugther of buffaloes recorded change of 32.6% from the first half of 2015 was 44.8%. By sex, females presented the slaughter variation of 88.3% and 22.2% males. Almost 4 million head of cattle were slaughtered in 2015. The figure for first half 2016 is 1.87 million head. A range of data indicates Columbia is in the top 10 in terms of global cattle inventory. An MLA report in 2016 indicated Colombia cattle prices were similar to Peru at around US$300 per 100 kg liveweight sold.

Sudan has the highest sheep meat consumption per capita according to OECD

The figures are for 2015 and the OECD figure for Sudan for sheep meat per capita consumption is 10 kilograms.

OECD report
It seems like demand is strong as the Mayor of the town of Wau has ordered a meat price reduction. Another article refers to a price of 50 pounds being mandated compared with 120 pound in the market. The FAO price tool does not include a mutton price in its database. However, the Gedaref State, Sudan State Food Security Technical Secretariat (SFSTS) report from January-March 2016 refers to SDG 60 per kg which is equivalent US$9.88 per kg.

New specialty steak cut, the Bonanza Cut, unveiled by meat science professor

The small, quarter-moon-shaped slice of beef that has a taste and tenderness that outclasses any other cut except filet mignon made its debut this week for media, meat industry representatives and University officials in a private tasting.
http://naes.unr.edu/demello/
De Mello started developing this new cut in 2014 while working for the beef industry. With support from JBS, a world leader in processing of beef products, he conducted research on the cut at the University beginning in 2015 and found it compared extremely well against other cuts of beef.

The objective of the experiment was to evaluate tenderness and cooking yields of the m. infraspinatus caudal tip (the very far end of the flat iron steak) and verify the opportunity of exploring this cut as an added-value product. Research found that the Bonanza Cut has superior marbling and higher fat content compared to other meat cuts, including the flat iron steak.

"Meat processors will like this specialty cut for a number of reasons, one because it's very easy to trim," de Mello said. "When you separate the chuck and the ribs, the Flat Iron steak goes one way - with the Chuck - and the relatively small end stays with the rib side; this is the Bonanza Cut.

"The industry will also like it because instead of selling it for $1 a pound as lower quality meat, they can showcase it for what it is, a premium cut worth more like $5 a pound."
http://www.unr.edu/nevada-today/news/2016/the-bonanza-cut

http://naes.unr.edu/demello/bonanza_cut.aspx

Australia sits on top of global cattle price tables

Australia has gone from the bottom to the top of the price tables in 4 years. It is hard to believe the low level of prices in 2013 at only AUD$629 per head. We equate values by converting to Australian dollars and then use a 280 kilogram carcase to compare values. USA, Canadian and European cattle prices are well down in 2016 and the comparison is made in August of each year.

Russian foodservice market contracts in 2016

According to the Russian Federal Statistics Service (Rosstat), turnover of restaurants and cafes in Russia fell by 5.5 percent to 1.3 trillion rubles in 2015. In the first half year of 2016, turnover of restaurants, cafes and bars fell by 3.7 percent to 615.9 billion rubles in comparison to the same period of 2015.

An article in Russian media noted: turnover in the second quarter of this year - by 2.5%, to 321.1 billion rubles. Rosstat is the agency that published detailed data on the Russian economy. According to Rosstat, Russia's GDP has been declining for six consecutive quarters. Since the beginning of the crisis, the Russian economy has lost 5.5% of GDP. In the first quarter of 2016 Russian Nielsen Consumer Confidence Index fell to record lows. Further details in a range of matters in food are in the USDA FAS GAIN report released 15 August 2016.

Brazilian state Mato Grosso sees big fall in shipments to China

China, which has been the largest purchaser of Mato Grosso meat, decreased in June, turnover in 61.9% "in the collection, on-month." The IMEA - Mato Grosso Institute of Agricultural Economics - believes that it is a "strange particularity in minimal" and that the reduction of purchases by the Chinese generated "concern to the market." The devaluation of the dollar against the real (passing from 20% in January so far) "negatively affected Brazilian exports" and meat sales abroad are having "negative growth since May." Sales last month were 0.67% lower than in June. "It is the smallest value obtained from 2013 in a month of July."

Business were $ 71 million (in 2015 was 97 million dollars) and last month 72 million. World Beef Report noted: China show recovery signs but negotiations are hard. The Chinese beef market “is not yet adapted” to the prices required by the Mercosur industry. Operators working in that market coincide that demand show signs of recovery but that are not yet transferred to prices. A trader reports a shipment of shin & shank from Uruguay at US$/t 4,900 CFR, 5+8 rib at US$/t 3,200 CFR and knuckle at US$/t 4,800 CFR. Brazilian fresh beef sales to China sunk to 3,495 tons swt in July, the lowest volume in the trade current since June of last year, when China reopened its market for Brazilian fresh beef. A worse competitiveness of exporters due to a currency revaluation, the problems of Chinese importers to accept the prices asked by exportation and improvements in other markets that compete for the same cuts, like Russia, were the reasons for such a sharp fall.