There has been a bit of talk around lately regarding the Australian Bureau of Statistics (ABS) official cattle herd numbers, and how they have ramped up considerably with new methodology. While the herd numbers are old news now, being for June 30, 2023, it's still worth looking at what’s changed.
The ABS previously
used farmer surveys to calculate the size of the Australian cattle herd. To
reduce the burden on farmers, and in an effort to get an accurate picture, the
ABS are now using data from ‘other sources’ as well to calculate how many
cattle there are in Australia.
It is not
the change of methodology that has bumped the herd number in recent years up,
it is the inclusion of smaller farms.
The ABS didn’t survey farms with less than $40,000 in revenue from
farming, but it is now including these numbers.
Cattle on
smaller farms still have to make their way through the system, so it makes
sense to include these numbers. There
are around 4 million head of cattle on smaller cattle properties according to
the latest revision, with most of these beef cattle.
The new
numbers from ABS are largely steady at 4.2 to 4.3 million head above the old
numbers (Figure 1), suggesting that smaller farm numbers are much more static
than larger farms. This makes sense with
larger farms increasing or decreasing numbers in response to seasons and
profitability.
The cattle
herd numbers themselves make for interesting analysis. The ABS pegged the 2023
cattle herd at 28.89 million head. This
was a 4% increase on 2022, and up 7.9% on the lows of 2020. Interestingly, the ABS 2023 figures weren’t
far off Meat and Livestock Australia’s projected number, which was 28.7 million
head. MLA’s projected number was 18%
higher than their 2022 figure, but this was the old ABS number.
The
conclusion we can come to here is that herd growth was weaker than expected in
2022-23. The very low female slaughter
rate over this period would generally suggest otherwise. The calf crop can be estimated using herd
numbers and offtake (slaughter and live export), and Figure 2 shows it was 7.7
million head in 2022-23. This estimate doesn’t account for on-farm deaths.
What does it mean?
With the current cattle supply so strong, it is no surprise to see a lift in the cattle herd in 2023, although slaughter rates we are seeing at the moment suggest it might have been higher still. The female slaughter rate for the first three quarters of 2023-24 is pointing towards a steady herd this year, hopefully, we don’t have to wait until June 2025 to find out.
Have any questions or comments?
Key Points
- The ABS has changed its methodology for calculating the national herd, adding 4.2 million head.
- The increase in the herd in 2022-23 was much lower than expected.
- Cattle slaughter rates suggest the herd should steady this year.
Click on figure to expand
Click on figure to expand
Data sources: MLA, ABS, Mecardo