australian association of agricultural consultants cameron hall – ceo livecorp 27 november 2009
TRANSCRIPT
Australian Association of Agricultural Consultants
Cameron Hall – CEO LiveCorp 27 November 2009
Presentation
• Industry Overview• Market Opportunity • WA Sheep Supply• Animal Welfare
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Sum of Total Sum of Value
Live Cattle – market overview
Live Cattle – Market shareMarket Share 2002/03 (1,000,000
head)
China2%
Japan2%
Russian Federation2%
Philippines1%
Other2%
Malaysia3%
Saudi Arabia3%
Libya3%
Israel4%
Indonesia78%
Market Share 2008/09 (890,000 head)
Indonesia49%
Israel3%
Saudi Arabia5%
Malaysia10%
Other18%
Philippines11%
Russian Federation0%
Japan2%
China2%
Rapidly increasing populations in developing Asian countries
Indonesia(52 million growth - 24%)
Philippines(39 million growth - 45%)
China(150 million growth - 11%)
2005
2010
2015
2020
2025
2030
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300millions
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2010
2015
2020
2025
2030
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140millions
2005
2010
2015
2020
2025
2030
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1600millions
Source: MLA
Indonesian live cattle market opportunities for north Aust cattle
• 230m people • Strong economy• 2kg beef consumption, mostly Java
and Sumatra• Islamic market – no pork• FMD free • Established feedlotting partners• Cattle to Indo 2009: 544k end Sep.• Market outlook remains strong
Live Sheep Exports – Volume and Value
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7000'000 Head
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Sum of Total Sum of Value
Live and Meat volumes
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1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
million head
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80'000 Tonnes swt
Total - Live Sheep Total Lamb & Mutton Lamb & Mutton (not including UAE)
Live sheep exports
Source: ABS, MLA forecasts
91 93 95 97 99 01 03 05 07 09f 11f 13f0
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8million sheep and lambs
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numbers exported value
f = forecast
Recent Research
Sheep Supply in Western Australia
Australian Winter Crop Area & Sheep Numbers
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25
1990-91 1993-94 1996-97 1999-00 2002-03 2005-06 2008-09
million ha20
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million sheep
Wheat Coarse grains Oilseeds Pulses Sheep numbers
Land Use in Western Australia
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1990-91 1993-94 1996-97 1999-00 2002-03 2005-06 2008-09million ha 0
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million hd
Winter crop area (left axis) Sheep numbers (right axis)
Australian Sheep Flock & Sheep Prices
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120
2000-01 2003-04 2006-07 2009-10f
million
head
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2008-09
Ac/kg
Lambs Breeding Ewes
Non-breeding Adult Sheep Sheep Price
Sheep Numbers & Turnoff – Western Australia(million head)
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45
1990-91 1993-94 1996-97 1999-00 2002-03 2005-06 2008-09
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Sheep numbers (left axis) Sheep and lamb turnoff (right axis)
Indexes of Prices Received by FarmersAustralia
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1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 f
Index
Total grains lambs sheep live sheep for export wool
Ratio of Prices Received for Livestock Relative To Total Grains
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1997-98 2000-01 2003-04 2006-07 2009-10 f
sheep/grains
lambs/grains
wool/grains
live export/grains
What does this mean?
(million head)
The markets are strong and supply is weak
Sheep producers in a strong position with healthy competition.
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2000-01 2003-04 2006-07 2009-10f
million
head
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2008-09
Ac/kg
Lambs Breeding Ewes
Non-breeding Adult Sheep Sheep Price
Live export program – Research & Development
• Investment in R&D is spread across On farm Pre export On board ship / airplane Post arrival
• R&D delivers across three strategic focus areas Animal welfare Market access Supply chain
• 2009/10 R&D budget is $1.8M
Factors impacting animal welfare• People
Management Animal husbandry practices Livestock handling
• Facilities Ships and ports Trucks Feedlots Abattoirs
• Weather – extremes
Questions?