Indicator changes lead to throughput increases
23 March 2023
Key points:
- Improvements to MLA’s livestock indicators have ensured greater accuracy, less volatility and more relevancy to the current cattle and sheep markets.
- Since December 2022, MLA’s Market Information team has been making constant improvements to indicators, as well as retirements to existing indicators.
- Indicators now operate on a “live” basis, meaning that at the completion of every NLRS reported sale, the indicator’s price and throughput is updated.
In 2022, MLA’s Market Information team made several improvements to the red meat and livestock industry’s market indicators. Since their inception in December, the improvements have ensured the industry has more accurate, relevant data that reflects current and future market trends.
Improvements to livestock specifications
Changes have included the widening of livestock specifications, including the removal of all fat and muscle scores, and expanding weights to reflect the current market. This has translated into significant increases in the indicators’ throughput (see Table 1 below).
Table 1: Average daily changes in indicator throughput since 1 January 2020
|
Indicator |
Changes made |
Average daily change in throughput (Actual) |
Average daily change in throughput (%) |
|
Processor Cow |
Removal of all fat and muscle scores Weights above 520kg/head included |
4,048 head increase |
564% increase |
|
Heavy Steer |
Removal of all fat and muscle scores 400–500kg and 600–750kg weights included |
1,255 head increase |
1,121% increase |
|
Mutton |
Removal of all fat scores 0–14 and 24kg+ weights included |
30,244 head increase |
197% increase |
|
Heavy Lamb |
Removal of all fat scores 26–30kg+ weight range specified |
29,246 head decline |
-15% decrease |
Improved throughput ensures less volatility in indicators, more trust in the indicators and provides users with more accurate and reliable data to make more informed business decisions.
For example – although the improved Heavy Lamb Indicator saw a decrease in its average daily throughput, its current specifications are significantly more relevant and reflective of current market expectations of what constitutes a heavy lamb.
Live indicators
Another feature in the improved suite of indicators is they now operate on a “live” basis. This means that at the completion of every NLRS reported sale, the indicator’s price and throughput is updated.
Indicators can be updated up to 18 times per day on busy sale days.
In time, all NLRS indicators will transfer to operating live, including the Eastern States Daily Report. This transformation demonstrates the continual improvement MLA’s Market Information team is making to its product offering.
Online indicators for Young Cattle and Breeder/Pregnancy Tested in Calf (PTIC) indicators will be delivered to industry in ¢/kg liveweight and $/head terms respectively.
