1

THE CURRENT BEEF PRODUCTION SYSTEMS IN

AUSTRALIA AND NEW ZEALAND

Unit 2: Beef Production – Mini project

Thursday 5.12.2013

Sam, Chuks, Bojana, Alex & Anne

Agenda

Historic overview

Current situation

Production system

Pasture

Feed lot

Markets

Economy

Development - The future

Australia

Cattle production across all of the land

40,200 farms – 29,700 in the south alone

Large herds – one herd of 500,000!!

Environment variable – (Often hot) – not ideal for heat producing cattle

8th largest producer

2nd largest exporter (60%)

Exports large amounts to USA and East Asia

Green and Clean

Australia has built up a reputation for having safe meat, having avoided:

-BSE

-Foot and mouth

Also many of the farms portray Organic farming which is attractive to the customer

VS

Where in the country?The big divide!

NORTHERN SOUTHERN

Extensive Intensive

Grass finisher Feed lots(largest holds 75,000)

Dry arid conditions Cooler, wetter conditions

Low grass quality Better grass quality

Brahman, Santa Gertrudis and Bos indicus

Angus, Limousin and Charolais

Low meat quality High meat quality

Export mainly to Asia Export mainly to USA

Type of farming for beef?

-Extensive-

Many farms across the north of Australia are extensive farms with uncontrolled mating (males and females run together all year)

They are exposed to weather conditions – can decrease liveweight up to 10%

Also possibilities of infection from wildlife and even poisoning by wild flora – e.g. Ragwort

Supplementary feed will be needed due to low grass quality – not always carried out

Drinking water low quality

Extensive continued…

Mother and calf will run together.

May not be separated as can be grass fattened – not feed lot

Will go many months without human contact

Low manual labour

Less husbandry so more problems?

• Lameness

• Unseen disease

Type of farming? -Intensive-

Feedlots are on the rise as need for good grain increases

Mating is controlled to coincide with a time of plentiful feed

Feed lots are common and can house many animals (75,000)

Feed lots will feed animals differently depending on their place of export or nature of production

Intensive systems are mostly smallholders

Intensive continued …

Sun shelters required as no natural shade

Feed required as no natural forage available

Higher labour costs

Less illness going undetected

Greater beef product per cow

Can keep better beef breeds as conditions controlled more

SWOT analysis of Australian Beef

productionStrengths Efficient production methods ‘Clean green’ product Major exporter

Weaknesses Volatile global commodity markets Concentration of processing capacity Climatic variability

Opportunities Management of production risk Increased demand from Asia markets Attainment of greater efficiencies

Threats Input prices Disease risk Climate change

One of the important developments that Australia needs is to improve its feed

Try to balance the affect of the cows on the land – overgrazing

Recent legislation bans land clearing for beef production – more intensive farms? More animals per area?

Ever increasing demand for meat means the market will expand – challenge – to make the expansion sustainable!

Development – The future

New Zealand

Climate

New Zealand lies in the Southern Pacific Ocean, 1,600 km east of Australia.

Total Population of 3.8 million, two-thirds live in the northern region of the North Island, 85% urban and 15% rural.

The climate is temperate - the mean daily range from 44°F (8°C) in July to 63°F (17°C) in January, summer temperatures reach over 86°F (30°C) in many places.

Average rainfall varies widely - from less than 16" in Central Otago (central South Island) to over 250" in the Southern Alps.

The current situation• Meat Industry generated $4.6bn

in export earnings comprising 15% of total merchandise export value

• National Beef herd- 4.4 million animals

• Total Dairy herd- 5.1 million herd (indirect contributor to beef supply)

• Beef industry

account for about 1.1% of total world beef production

About 10% of beef enters the international trade

80% of total beef produced in NZ is exported

Markets

Beef consumption

SWOT Analysis of NZ’s Beef Production

Development – The Future change

Changing Demographics and Wealth

Food, Image and Belief

Globalisation

Climate change

Increasing Pressure on Natural resources

The ChallengeTo improve production and profits whilst also improving animal

welfare, and reducing the environmental impact.Also to consider the threats to modern farming such as infectious

disease and climate change.

Thank you!