Australia-Beef Industry doing it very tough.
AUSTRALIA- The nations meat processors are facing increasingly tough trading conditions as global demand dries up.
Processors in the eastern states are taking a day-to-day approach.
Downturns in prices for offal and hides are also affecting profitability and further decreasing the amount processors are willing to pay for stock.
Last week produced a price drop across all livestock categories.
According to Meat and Livestock Australia, export markets for beef, particularly Korea and Russia, remain weak due to continued problems with credit and stocks and fears that demand will fall further.
JBS Swift Australia director John Berry this week said there would be challenges in the immediate future moving local product into export markets, even with a competitive Australian dollar.
"There are a host of issues with liquidity for buyers that will see trading operators forced out of business, with an impact across the whole supply chain domestically and globally," Mr Berry said.
While major Queensland processors have re-opened for the year, in Western Australia things are looking grim for producers trying to sell stock.
The West Australian red-meat industry continues to face mounting challenges, with the temporary closure of a major processor the latest hit.
Harvey Beef is having a nine-day lay-off to clear warehoused stock and review its operations, as a drop in demand from international buyers continues.
WA Farmers president Mike Norton said although the state’s beef industry was experiencing a tough time, the move came as a shock.
"In the economic climate, to shut a plant for nine days, at an important part of the season, has come as a surprise," he said.
"This has not happened at this time of year before."
WAFF is involved in a statewide review of the beef industry after years of low prices, well below those paid to eastern states producers. The review is due to start next week, which was timely given the latest development, Mr Norton said.
"Hopefully the review will put to bed some of the internal criticisms - producers blaming processors for what has been happening and so on," he said.
