RECORD high domestic cattle returns could stay around well into 2022 if cattle industry analysts are correct in suggesting global beef availability is set to remain tight this year.
Adding to the global beef supply pressure was the announcement last month of an atypical case of BSE (bovine spongiform encephalopathy, also known as mad cow disease) being detected in Canadian beef.
Canadian imports into South Korea, China and the Philippines have been banned, but Meat and Livestock Australia expects any loss of market for Canadian beef will be temporary and short.
At the same time, local challenges related to COVID-19 infections and processors limited by staff shortages could temper the Australian cattle producer returns at the saleyards in the short term.
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The Eastern Young Cattle Indicator started the year on 1162 cents a kilogram (carcase weight), 2c/kg higher than it closed in 2021, but slipped to just above 1150c/kg on Monday.
Tuesday's EYCI calculation was skewed by Roma's results entering the mix, pushing the EYCI to 1182.5c/kg.
Roma's individual average for EYCI-type cattle was 1303c/kg, while most other major selling centres contributing to the EYCI sat well below 1140c/kg, which is probably a better reflection of what most cattle producers should be expecting for their livestock in the saleyards.
A significant reduction in supply at many NSW saleyards last week and reduced slaughter figures reported by MLA both reflect the slower start to 2022 across the beef industry.
National cattle slaughter was 41,678 head during the first full week of trading in 2022, which was 41 per cent below the same time last year, according to MLA data.
Likewise, yardings in saleyards were 62pc lower than the seasonal trend.
Meanwhile, over-the-hooks pricing data from MLA has been suspended indefinitely, so independent reporting of where the market sits for direct cattle sales is foggy.
MLA made the announcement this week and said the reports would be reviewed in the second week of February.
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