Impacts of flooding on livestock markets

Weather update

The Bureau of Meteorology is forecasting above-average rainfall in the next fortnight for much of eastern Australia, especially in Queensland, NSW, Victoria and Tasmania.

Some parts of south-east SA are also expected to be affected and this is expected to continue into November. The map below shows the areas that have a 75% chance of rainfall in the next two weeks.

Meanwhile, the map below depicts the difference between rainfall this year compared to last year. Many areas of Australia – particularly regions such as northern NSW – have had a significant increase in rainfall. With river systems and soils already above 100% water holding capacity, producers continue to move livestock to higher ground.

Yardings

With flooding causing widespread road closures, getting livestock to saleyards has become difficult and producers are looking to shift numbers to higher ground.

Some sales such as Gunnedah and Swan Hill have been cancelled, with water levels increasing in these areas. Roma and Gracemere recorded reduced yardings this week as producers in the region also found it difficult to transport any livestock to sale, with yardings falling by 27% and 25% respectively.

Wet conditions around the yards are expected to further reduce yardings moving forward. Other supply chain issues such as transportation to feedlots and processing facilities – along with harvest and input supply issues – are expected as well.

Meanwhile, buyers face the challenge of finding room for purchased stock if their properties are under water or more rain is forecast.

Heavy rainfall could also impact the quality of the feed on ground, especially with waterlogged paddocks. This could impact the finish of animals moving through the saleyards in the coming weeks.

The impact of these most recent flood events on processors will not be seen until next week’s slaughter report is released.