Australia-Heavy Rain closes down beef industry.

Heavy rainfall and flooding across many areas of Queensland in the past 10 days have paralysed meat processing operations, creating serious disruptions to flow of slaughter stock.

Major export abattoirs across the State have reduced kills, skipped shifts or cancelled entire kill blocks this week, and the same is expected until the end of next week, at earliest.

While the earlier flood devastation in North West Queensland and gulf regions had little real impact on processing operations ? few cattle are traditionally drawn from those regions at this time of year - circumstances began to change as the rain influence moved south this week.

Teys Brothers livestock general manager Geoff Teys said shifts had been lost at his company’s Biloela and Rockhampton plants on Monday, and more were likely before Friday.

"It’s a day-to-day proposition, but we’re expecting massive disruptions in all our plants next week. The rain influence is now extending from the central and coastal regions all the way into NSW."

Swift Australia is yet to open its Townsville plant this year due to ongoing rain in the north, and killed only six of 11 shifts at its flagship Dinmore plant this week.

Swift Rockhampton has also suffered disruptions, as has Nippon Australia at its Borthwicks Mackay factory.

Mr Teys said barring further follow-up rain, the logistical problems in shifting cattle could last up to 10 days, with a lot of secondary roads either impassable, or carrying load restrictions.

"There will be a lot of dark days (temporary closures) in meat plants in the meantime," he said.

Another key factor in terms of the immediate supply challenge was the limited numbers of cattle in feedlots at present.

In normal circumstances, major processors rely heavily on grainfed cattle from feedlots serviced by all-weather roads to prop up kills during times of heavy rain.

While the December quarter grainfed industry survey suggested feedlot numbers in Queensland had jumped 50 percent to around 425,000 head from the previous September quarter, very few cattle had gone onto feed since then, because of the cost-price squeeze.

As a result, there was no significant ’pool’ of grainfed cattle for processors to tap into during the current heavy rain period, Mr Teys said.

On the upside, this week’s rainfall will produce a flush season in many areas, so while there will be short-term pain, there will also be longer-term gain.

Export processors this year have also been struggling to sell beef into international markets at realistic prices, due to credit restrictions and the broader economic downturn.

The current production declines caused by the weather could only help ease that problem, Mr Teys said.

"Shortening up supply through the weather will only help processors, and ultimately, producers also," he said.

Swift Australia director Ross Keane said historically, processors raised rates during times of heavy rain to ’flush-out’ alternative supply of slaughter stock.

"But under the current global meat environment, we cannot shift rates to stimulate supply, because we cannot write any more money for the meat.

"There’s nothing it it for us," he said.

Swift’s grid price for four-tooth grassfed ox remained unchanged at 290c/kg this week, despite the weather check.

Last week’s Queensland State-wide kill (for the week ending Friday 13) saw just short of 67,000 cattle processed across the State, down 7pc on a week earlier.

However, some reports suggest the tally for the current week ending Friday could easily be down 40pc on normal seasonal rates seen during late February.

The Roma store sale last week carried about 7500 head, but numbers crashed to just 3500 head on Tuesday due to rain disruptions.

Seven-day rainfall registrations to Tuesday of 100mm or more have been common across large areas of Central Western Queensland, the Central High-lands and coastal areas, and stretching well into the Warrego and Maranoa districts.