Australia-Grave concern over large numbers of dairy cows going for slaughter over one million cows in Victoria alone.

THE health of the southern cattle industry is not so good, judging by the latest slaughter figures which indicate a massive shift away from breeding stock.

Since April last year more than one million beef and dairy females have been killed in Victoria - the highest female slaughter in more than three decades, according to Meat and Livestock Australia.

MLA said you had to go back to the 1970s before you could find an 11-month period (April to March) in Victoria that recorded a higher kill of female cattle.

The difference, of course, was that back in the mid to late ’70s Victoria was home to an estimated 6.1 million cattle and the national herd stood at 31.8 million.

The latest data, from 2008, has Victoria’s cattle herd at just 3.9 million, a 15-year low.

For Victorian farmers to be killing record numbers of cows, from such a low base, suggests the industry has huge problems aside from the obvious of on-going drought and depressed milk prices.

Certainly the last two factors, drought and the drop in dairy prices, have been linked to the latest slaughter figures for February which listed Victoria’s female cattle kill at 92,000 head.

It rates as the highest February slaughter since 1983.

Also recording high cow kills during February was Tasmania, where numbers jumped 37 per cent compared to a year ago, while the female kill in NSW was up 12 per cent.

The season is definitely a culprit, and at recent sales agents have commented how the media, and the farming industry in general, are underestimating how bad current conditions are.

The situation in the dairy industry, of course, has been front page news as frustrated farmers change milk companies or abandon the industry altogether.

Judging by phone calls and conversations in recent weeks, there is just as much frustration within the beef industry and it boils down to the same problem that affects dairying: farmers are working their lungs out and not getting a decent return.

A case in point is the vealer industry, once the pride and joy of the southern beef sector.

It has been decimated by the rising cost of producing quality milk calves, and the poor financial returns of less than 190c/kg for the majority sold over a season.

Evidence of the declining returns can be seen in the historical price data for cattle. In 2001 the average price of a trade weight steer sold at saleyards was 186c/kg liveweight.

By last year (and after huge rises for inputs such as fertiliser, fuel, feed, etc) the average had fallen to 180c/kg, while so far this year the tradeweight steer price is tracking at 168c/kg.

Other issues raised with The Weekly Times in recent weeks include:

The problem of intimidation and rorting at prime cattle markets by some buyers. One agent rang last week, asking the paper to do something about the "corruption", but refused to leave a name for fear of a reprisal.

Heavy price discounts when selling direct, such as a 20c/kg penalty for entire loads of feedlot cattle when a few animals don’t have lifetime traceability.

Farmers having difficulty receiving full NLIS carcass feedback on animals from abattoirs, even though they are under constant pressure to comply with eartagging regulations.

The southern beef industry is in just as much trouble as the dairy sector, but it doesn’t receive the same publicity as the price cuts and financial difficulties are not as transparent.

But the extreme frustration and disillusionment with the beef industry is starting to show up in the cow kill figures.