Beef Production

Industry: Livestock - Beef

1. Description of Product:

Production of beef cattle for meat.

Breeding for herd improvement and herd replacement.

Dairy beef for export markets has been trialled in the Murray Valley.

2. Location of the Industry:

Cattle producers are located throughout the region with a concentration in Shire of Towong (443 growers), Oxley region (405 growers), Benalla (276 growers) and Yackandandah (238 growers).

ABS Agricultural Census 1995 identifies these areas as major producing areas, on basis of calf and cattle slaughterings and breeding statistics.

Brief Description of Livestock Industry

Beef Cattle for meat production are produced by traditional graziers, and by feedlots in the region. Grass fed beef producers are located throughout the region, and include large beef only enterprises, mixed farming operations and smaller hobby farmers.

There are several feedlots in the region with the largest at Peechelba located outside Rural City of Wangaratta. Feed including grain is secured within and outside the North East.

Livestock is marketed directly from farms, through agents for local abattoirs and for abattoirs outside the region and for export. Livestock is also marketed via saleyards which are located in a number of areas with major trading at Wodonga, Wangaratta and Benalla.

There are five abattoirs in the region and a sixth at Wodonga. Livestock from this region is processed locally ie. within the region and also outside the North East.

3. Employment and Labour Requirements

a. Number of Producers

2042 - from ABS, includes all producers, mixed operations hobby type farms and feedlots.

4. Annual Production :

Production is measured by value of slaughterings provided by ABS $92.3 million (1995)

Value of breeding is difficult to measure. Breeding animals retained within the region represent an increase in value of assets rather than annual production. Breeding animals sold outside the region contribute to production. A survey of breeding sales has not been undertaken at this stage. However it is recognised that breeding of beef cattle is significant component of the livestock industry in the north east.

6. Production Trends Over the Next Five Years:

1. Although there has been a decline in farm profitability over the past two years, this is unlikely to impact strongly on the industry in terms of numbers of growers although the gross value of production of the industry has declined.

2. One feedlot would project 40% increase in number of stock in the next 5 years. The operations of other feedlots depend on price of cattle and grain prices. However with increase in grain prices and export market competition, there is some pessimism in the feedlot industry.

3. The production of dairy beef following on from trials 3 years ago, is dependant on a number of factors although currently production is minimal.

a) Potential

1. The north east is a well regarded breeding region.

2. Industry infrastructure has developed with the industry eg. transport services, saleyard facilities, as have the service industries.

3. There is an advantage of proximity to Melbourne/Sydney route and to markets.

4. There is a developed processing industry in the region.

5. There is a substantial production base in the region.

6. The dairy herds in north east and conditions generally favour the production of dairy beef for export.

7. The feedlot infrastructure is established and processing and marketing linkages are well placed for development, given market opportunity.

Extracted from the Bright Report