THE CURRENT BEEF PRODUCTION SYSTEMS IN AUSTRALIA AND

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 1

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 8 th largest producer 2 nd 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 production Strengths Weaknesses Efficient production methods ‘Clean green’ product Major exporter Volatile global commodity markets Concentration of processing capacity Climatic variability Opportunities Threats Management of production Input prices risk Disease risk Increased demand from Asia Climate change markets Attainment of greater efficiencies

Development – The future 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!

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. 6 bn 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

Markets 80% of total beef produced in NZ is exported

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 Challenge To 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!