Humane Abattoirs?

Maybe a contradiction in terms, but improved animal welfare in abattoirs is a win-win situation.

Well treated animals before slaughter actually deliver better quality carcasses, as well as improved animal management and welfare.

One of the leaders to improve animal welfare in slaughterhouses has been Temple Grandin from the USA.  She is well  known for her work by those in beef production and the meat industry.

But just recently she has made it into The Economist magazine, an unlikely vehicle to be discussing animal welfare and abattoir design in light of improved animal management and outcomes.

It is a long article - and well worth reading as it does actually discuss some of the innovations that can improve animal welfare and abattoir performance.

See it here - 
http://www.economist.com/news/united-states/21671150-how-temple-grandins-designs-have-reformed-meat-industry-jungle-no-more?cid1=cust/ednew/n/n/n/2015108n/owned/n/n/nwl/n/n/AP/email

and think about how simple changes can improve meat quality next time you have a steak!

Some parts of the world do have a long road ahead for improvement, but many western country abattoirs are now making the changes that do really improve animal welfare before slaughter and these should offer some solace to all meat eaters that animal welfare does not have to be compromised in abattoirs. 

Remember that  "In her view, properly performed slaughter [ of cattle] is less cruel than a more natural death at the jaws of wolves"

Australian Cattle - Live Export to China Agreed

​China: new market for livestock exports

20 July 2015​
Minister for Agriculture, Barnaby Joyce, has today announced a breakthrough in live cattle export trade negotiations with China.

Minister Joyce said the Australian and Chinese veterinary authorities were in the process of formalising agreement on animal health certification requirements, which would allow industry to begin to prepare the commercial and ESCAS arrangements for trade to commence.  “I was very pleased today to sign the agreement of health conditions for trade of Australian feeder and slaughter cattle to China—now it’s over to my counterpart, Minister Zhi Shuping, to sign on the dotted line and finalise the agreement between our two nations,” Minister Joyce said.

“Over the past five years we’ve had a significant trade in breeder cattle with China, primarily for dairy heifers. Now, I’m pleased to announce we are a step closer to the commencement in trade in live slaughter and feeder cattle to China. “Getting the groundwork right for any new market can take time, and now the industry can prepare to begin this trade.

“This will be the seventh livestock slaughter cattle export market that I’ve opened since becoming Minister—adding to Lebanon, Bahrain, Egypt, Iran, Cambodia and Thailand.

“Market access is a major priority for the Australian Government—we have sent a clear message—Australia is open for business.  “And it’s not just our cattle producers who are experiencing greater market access opportunities, with the announcement earlier this year of agreed health protocols for breeder deer to Malaysia, and breeder sheep and goats to the Philippines.

“The Australian Government has worked hard to make sure our livestock producers and exporters have every opportunity to trade with other nations.

“Once the agreement is formalised, exporters will be able to begin working with importers in China to implement the Exporter Supply Chain Assurance System (ESCAS) and establish supply chains that meet those requirements.

“This industry is a real Australian success story. We are known world-wide for our high-quality and reliable livestock trade, and now industry has another opportunity for trade to increase,” Minister Joyce said.
------------------

brahman cattle - NT

That is the formal PR media release.

More work yet, and the big question will be............where are the cattle coming from since we already have large  boxed beef sales to China..

There is no slaughter agreement nor supply chain arrangements and anyway, why not slaughter here in Australia as we do now?

Yes, some positive news after Indonesia dropped the import quota to less than 30% of the previous quarter.  They might come to rue that decision, or will NT and other northern pastoralists continue to support the Indonesian trade?  It could be 6 months before live cattle start moving to China for slaughter, there is much to be done.  In the meantime, will the import permits to Indonesia increase?

The talk is a million head of cattle per year to China within 10 years.  It might be a tough gig to get that number which is basically double the already 1 million exported live to other Asian countries !  It is a numbers game and with more cows being slaughtered, where are the breeders coming from to achieve those numbers?

Curiously, a Chinese completed the purchase of a large pastoral property on the NT / Qld border earlier this week, for about A$46 million, including the stock.  Not sure I believe in coincidence!

Live Cattle Exports from Australia Increase Significantly in 2014.

AUSTRALIAN live cattle exports for April have set a new high, recording the greatest monthly volume on record.

Figures released this week by the Australian Bureau of Statistics show Australia’s April live cattle exports totalled 170,435 head, which is more than double last year’s level.

It has pushed the fiscal year-to-April number up 89% year-on-year to 921,273 head, with increased demand reported across most export markets.

Indonesia was once again the largest live cattle market, taking 80,428 head in April, up 45% from April 2013 levels, carrying the volume for July 2013 to April 2014 up 140%, reaching 493,874 head.

The second largest export market was Russia, demanding 29,647 head for the month, with the fiscal year-to-April volume twice as much as the corresponding period in 2013, at 47,735 head.

Live cattle exports to China totalled 18,355 head, lifting the current ten-month fiscal period 66% higher to 72,583 head.

Aggregate shipments to Israel totalled 17,200 head in April (up 116%), taking the fiscal year-to-April to 96,691 head (up 124%).

In April, Australian live sheep exports were 224,958 head, up 47%, yet brought the first ten months of the 2013-14 fiscal year 2% lower year-on-year, at 1.61 million head. Qatar demanded the most live sheep, at 74,000 head, up 6% on April 2013, despite a decline of 10% for the July-to-April period, of 426,897 head. Exports to Jordan reached 55,000 head, taking the fiscal year volume back 20% to 203,208 head.

Consignments to Kuwait reduced 40% on the same time last year, to 41,574 head, lifting the period from July 2013 to April 2014 up 35%, to 729,792 head, while shipments to Bahrain totalled 25,000 head.

Live goat exports increased during April, with a monthly total of 5102 head, up 3% year-on-year, seeing the fiscal year volume 29% higher, at 66,366 head.  Malaysia took the majority of exports, at 4097 head, down 17% on April 2013, with the ten-month fiscal period back 8% to 46,190 head.

Singapore received 836 goats for the month, reaching 17,855 head for the fiscal year – all of which had a final destination of Malaysia.

MLA  Source: http://www.mla.com.au/

While this data from MLA tells a positive story, what it does not indicate is the supply from the NT, which would have been the source of most of the stock going to Indonesia.  This is still the main market for NT livestock, and that is probably unlikely to change anytime soon.

More recent unconfirmed data also seems to show more and larger per cent increases in livestock - principally cattle - for China.

There is also market talk of a resumption of sheep sales to Iran, formerly a very large market for Australian sheep for slaughter.  Early days yet!

More BSE Detection in Brazil

ALMOST a year and a half after declaring an atypical BSE (Bovine Spongiform Encephalopathy) case in Parana state in Brazil, the OIE (World Organisation for Animal Health) has confirmed a BSE case in Mato Grosso state – the largest beef producer in the country and the second largest exporter, reports Meat and Livestock Australia (MLA).

According to the latest OIE report, the source of the outbreak (or origin of infection) is unknown or inconclusive. Investigations have indicated a likely isolated case of an atypical form as the animal was raised under an extensive system (grass-fed with added mineral salt only) and slaughtered at an advanced age – approximately 12 years old. During the epidemiological investigation, 49 animals from the cohort, which did not show clinical signs of the disease, were destroyed.

Mato Grosso state has a significant role in the Brazilian beef industry with a herd of 28.4 million head (Acrimat) and accounted for 19 per cent of total exports in 2013 with significant shipments to Venezuela, Hong Kong and Egypt.

According to MAPA (Ministry of Agriculture, Livestock and Supply) only Peru has temporarily banned Brazilian beef so far – a 180 day ban was placed last Thursday. Beef exports to Peru totalled 1562 tonnes swt in 2013.

typical brahman cattle produced in tropical areas of the world

As of today, it also seems as if Egypt has also banned Brazilian beef.  Probably not unexpected, as they source meat from Mato Grasso state.  There are sure to be more......

While not lording it over Brazil as a significant competitor to Australia in international markets, it does highlight the ultra importance of Australia working very hard to continue to remain free of the BSE problems, and along with other major animal diseases including foot and mouth.

Australia remaining free of these diseases is of urgency.  We do not want to be in a clean up mode; it would be disastrous for our beef trade! 

Indonesia Likely to Modify Live Cattle Import Rules

Several different sets of discussions, both in Australia and Indonesia, seem to be heralding a major change in attitude from Indonesia over beef imports to the country.

Last week in Brisbane was a very important meeting between Indonesian officials at a high level, and Australian participants in the live cattle trade to the country - the term of note is free and frank discussions - to try and develop some improvements and sensible co-operation in improving beef food supplies in Indonesia.  There is a monumental need to get the beef price down to around 75000 Rp per kg.  It has been well over 100000!  Indonesia also pretty well admitted that self sufficiency in 2014 for beef supplies was not achievable.  Then the ANZ Agribusiness area examined [ commissioned by the Indonesian Government] what self sufficiency might mean to Indonesia - for example was meeting 70% of demand a more reasonable goal, and a more achievable one?  This document is not yet publicly available, although there has been some media comment around.

Today saw announcements coming from Indonesia about a possible 60000 head increase in live cattle imports, and a potential change in how imports might be adjusted - with the critical issue being market beef prices.  If they rise, then that triggers more imports; if it falls below the nominated figure [ nominally around 76000Rp /kg] then trade reduces or stops.

All of the changes seem to signal a positive note for the live cattle trade into Indonesia, as well as some increase in boxed beef from Australia.

There is sure to be more, and clarification from Indonesia is certainly needed to ensure local pastoralists are able to begin some planning about how to be part of the increased live cattle trade.

More is here - http://www.abc.net.au/news/2013-08-29/indonesia-live-cattle-changes/4921398
and here - http://www.abc.net.au/news/2013-08-29/female-cattle-exports/4919486

and here - http://adf.farmonline.com.au/news/state/general/elections/indoz-meeting-held-in-brisbane/2669324.aspx?storypage=0

http://www.abc.net.au/news/2013-08-23/dist-indon-beef/4907554

and here too - Original Jakarta Post article: http://www.thejakartapost.com/news/2013/08/28/govt-issue-new-rules-meat-imports.html [ update on 29/8/13]

There certainly has been major discussions.  Lets see how it transforms into better co-operation between Australian and Indonesian interests in this important cattle trade business. 

It can be a win-win for both countries and their respective business areas.  And hopefully quite quickly, as we do need each other!



 

Indonesia to Run Out of Cattle ??

Indonesia is still struggling with policy settings to address the demand for beef, now that the live cattle trade with north Australia has been truncated.

The import restrictions which they have imposed have certainly been a cause of the big spike in beef prices in major cities.  Australia is not without some blame, over the instant curtailment of the trade on animal welfare grounds too.

Both countries have a range of groups to deal with in developing new policy parameters.

But there are some worrying news snippets coming out of Indonesia and recently reported on by Tempo magazine.

See - http://en.tempo.co/read/news/2013/08/14/055504422/No-More-Cattle-in-4-Years-Minister-Says

and http://en.tempo.co/read/news/2013/08/15/056504579/Beef-Prices-Remain-High-in-East-Java

and
http://en.tempo.co/read/news/2013/08/14/080504478/Breakthrough-in-the-Procurement-of-National-Beef

all from this week.  There are some others as well.

Which ever way one appraises the situation, Indonesia needs more beef and they are not in a position to produce what they need, not anytime soon, and that was the understood situation by many in the cattle industry in north Australia anyway.  When a minister announces that a country will run out of cattle in 4 years though - it is serious!

Both countries have election complications, but the Australian side is probably far less complicated than Indonesia where beef prices are likely to be a significant issue unless moderated before the 2014 Presidential elections.  And Indonesian political machinations are notoriously complex and often somewhat twisted!

There seem to be some broad easing of restrictions on live cattle exports to Indonesia announced recently, but the factors around the cattle numbers to be sent are relatively short term.  If a longer term perspective was announced for a year or several, then a bit of planning and some logic might allow better scheduling of animal movements, and local fattening in feed lots in Indonesia prior to slaughter.

Beef is in demand - with China now increasing [mostly] boxed beef imports, but some live cattle will go as well.

Could Indonesia be squeezed over prices such as they could not afford to buy cattle?  Possibly not immediately but could it happen...........maybe, if demand continues to surge from other countries in Asia.


 

Indonesian Cattle Herd Declines - NOT Increases

At the middle of the dispute over importing cattle and beef into Indonesia is the tenet that the herd was increasing and would be sufficient to meet domestic demand by 2014.

While many had views this was possibly not correct there has now emerged more recent 2013 herd statistics that seem to clearly show a rather large decline over a few years of several million head.  There are also reports that breeder cows are also being slaughtered in considerable numbers.  Hardly the path way to a bigger cattle herd.

The data has been leaked from new official statistics of a 20% drop in herd numbers since 2011, although many had believed the previous data to be rather inflated.  Whatever......it hardly indicates that Indonesia will be sufficient in beef production any time soon.

Sources in the Australian cattle export industry said they had always suspected the 2011 figures were grossly inflated to help justify the import quota system which has caused beef prices to skyrocket in Indonesia.

Indonesia's Tempo magazine published the leaked figures in this month's edition and reported that in many regions breeding heifers were being slaughtered for meat.

Agriculture Minister Suswono claimed last month that Indonesia was on target to reach its self-sufficiency target in 2014. "We hope it will be achieved next year," he said.

It is too soon to even speculate about increases in live cattle numbers going to Indonesia, especially as there are already some considerable increases still to be worked through over the next month or so.  It will be import numbers for early 2014 that will be critical, and it might be they will improve.

RUMOUR - Indonesia to Remove Live Cattle Import Quota

Strong rumours are doing the rounds that Indonesia may completely remove live cattle import quotas from Australia.

More when there is more!

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RI to end beef, live cattle import quotas

Linda Yulisman, The Jakarta Post | Headlines | Sat, July 20 2013, 10:25 AM

Indonesia will remove import quotas for beef and live cattle to stabilize domestic prices and curb inflation, a trade official says.

The government would set a parity or “normal” price for beef as a benchmark to assess the necessity for imports, Trade Minister Gita Wirjawan said on Friday in Jakarta.

Meat and live imports will be allowed only when domestic beef prices rise by more than 15 percent from the parity price, a move that will still support the local livestock industry, according to Gita.

“The price mechanism as a trigger to import or not to import is very important. But we should first determine the parity price, which should match our aspiration to curb inflation and maintain price stability,” Gita told reporters at his office.

The ministry was working on the policy framework, which would be ready in the next two months, he added.

Indonesia, the world’s fourth most populous nation, has seen demand for beef surging rapidly, outpacing the capacity of its domestic livestock industry to meet demand.

To support its target of attaining self-sufficiency in beef by 2014, the government curbed imports and reduced its import quota for live cattle by more than 30 percent last year and another 30 percent this year.

In addition, it cut the beef import quota by almost 60 percent last year and by 6 percent this year.

It has set an overall live cattle import allocation of 267,000 head for this year, with a beef import quota of 32,000 tons, 20 percent of which are prime cuts.

The planned measure will follow on the heels of recent changes in the import arrangements for horticultural products as Indonesia grapples with mounting pressure from trade partners who regard its import procedures as troublesome.

In January, the US lodged a complaint with the World Trade Organization (WTO) as it considered Indonesia’s trade measures “restrictive” and Indonesia’s “complex web of import licensing requirements” unfairly limited US exports.

The US has advanced to the Dispute Settlement Body of the world trade governing body, which has already set a panel to resolve the issue.

In the meeting of the WTO’s Council for Trade in Goods last week, the US reiterated its concerns about “a complex web of opaque trade restrictions in Indonesia affecting agriculture” in addition to energy and consumer goods.

However, Gita refuted speculation that the elimination of the beef and live cattle import quotas was mainly to comply with demands from trade partners, saying that the reform was necessary to reduce domestic prices. “What we’re doing is to improve efficiency and licensing transparency to help address the problems at the WTO,” he said.

For the rest of this year, the government would permit the unlimited importation of live cattle for “as long as possible” to attain price stability, Gita said. Earlier on Friday, Australia said Indonesia was boosting live cattle imports from that country by 25,000 head over the next three months, Reuters reported.

The move was aimed at maintaining domestic beef prices at between Rp 75,000 (US$7.40) and Rp 76,000 per kilogram, Gita said. That would be 20 percent lower than the national average price of Rp 93,000 per kilogram.

The Live Cattle Trade - Farcical or Fabulous?

Over the past two years this business is best seen as farcical.  When Australia was unable to send live cattle - by Australian government decree - and then Indonesia did not want them.

Recently it was announced at meetings between Prime Minister Rudd and Indonesian President Yudhoyono, the development of a A$60 million proposal to assist with development of the Indonesian beef industry with implications for additional animals going into the live export trade, sourced from northern Australia.

That latter part implies an easing of Indonesian restrictions on animal numbers moving in the supply chain.

Yes, the Indonesian authorities recently allowed a "bring forward" of some numbers of animals from the latter part of the year, enabling some animals to be shipped prior to Ramadan, although it seems no significant change in overall numbers is occurring, as yet.  These recently shipped animals are unlikely to be ready for slaughter for some time, and probably well after the end of Ramadan.  The Idul Fitri period after Ramadan is when demand for beef is very high, and logically more animals should have been shipped earlier if there was to be much influence on the already high beef prices around Jakarta for this high demand period.  More boxed beef may be imported too. 

And there have been noises in the media that Indonesia will likely purchase cattle properties in northern Australia to assist them with live cattle numbers.  Remember though, that any local producer is probably going to be subject to local Australian regulations too, and will the Indonesian owned cattle producer /exporter be exempt from Indonesian import restrictions and regulations?

typical cattle being fed in holding areas prior to live export

Really..........where is all this going?  Nowhere?  There has been strong links developed between industry groups in both north Australia and Indonesia, probably even strengthened over the past two years.  They recognise their interdependence............and the red tape that is in the way of increased live cattle trade development, in any form.

This process is too slow, and there is little information flowing publicly from both governments.

The live cattle trade was fabulous, with obvious commercial and social benefits to both countries previously .........and is now farcical!

Brazil - Compatriot of North Australia?

A recent article on the ABC web site about Brazil opens up some ideas about synergies between northern Australia and Brazil.


products of Brazil

The article is here - http://www.abc.net.au/unleashed/4768336.html .

Climatically, much of Northern Australia and Brazil are similar, especially the northern parts of Brazil, and the more southern area are maybe more similar to SE Queensland, as broad generalisations. 

Brazil agriculture

It is not without some strong parallels, that the Embraer aircraft of Brazil are well represented in commercial RPT fleets across north Australia, with Air North a significant operator of the aircraft - they are operationally designed to better suit tropical operational areas, and operate in remote and less technologically able areas; they are good aircraft.

The Brazilian mining giants including Vale are rapidly digging iron ore holes in Brazil, along with some in Australia, and looking at other mineral operations as well.  They are major competitors to Australian companies such as BHP Billiton and Rio, as well as Xstrata [ now Glencore] in international markets as well as emerging mining countries, eg Africa.

Both Australia and Brazil, are sized similarly, with large parts of the areas in the tropics.  Brazil is certainly a major cattle producer, even if less proportionally is exported than Australia, and disease issues also restrict options for export.  It would be a worry for Australian beef exports, boxed or live, if Brazil [as well as Argentina] ever got their act together and that region emerged as a serious, long term competitor.  They might in relation to China, still.

Australia's abattoirs have significant involvement by JBS, the Brazilian company that is probably the wold's biggest meat processing business.

There is a huge agribusiness system operating in Brazil, and Nufarm [ Australia's home grown agrochemical and seed company] is operating widely in Brazil.  It is likely that the r and D coming from Brazil in relation to variety development [ peanut,soybean, corn, sorghum etc],  seed technology may be applicable in Australia, or at least adaptable, and home grown technology including precision agriculture and controlled traffic systems are certainly of widening interest in Brazil and Argentina.

Socially the Brazilian economy is less endowed with support systems such as operate in Australia - with our social support, welfare and medical [ Medicare system] good examples where the Australian people are much better supported.

Should Australia, and north Australia especially, be seeking to improve and develop major interaction with Brazil?  Surely knowing much more about a competitor is useful.  It is true some activity is occurring, but increasing the tempo of those interactions might be considered a very smart option.

Live Cattle Export to Indonesia - Moving Again

Indonesian authorities have moved forward by just two weeks the quota for live export cattle from Australia for the 3rd quarter of 2013.

A boat of around 8000 head left Darwin this week, for Indonesia.  More shipments are planned in the near future.

But exporters are reputed to be cautious.  It seems that so far no increase in numbers has occurred but rather a bringing forward of the permits for the next quarter.  Which is helpful, but not a game changing event.

Most of the players it seems are likely to go quiet, and allow the issue to play out slowly.  And that is on both sides.

Australian exporters certainly would like the numbers to go up - considerably, but there are some political issues at play here on the Indonesian side and "quietly, quietly" seems to be the catchcry right now.  Both sides seem to know it is a valuable trade and offers benefits for both sides, but it is a bit tricky to balance various competing, often political, interests.

Could this situation change soon?  Some think it might, but do not hold your breath seems to be the message.