The MLA’s State of the Industry Report 2024 provides an essential overview of key events and trends impacting Australia’s red meat and livestock sector in the period from 2022 to 2023.
This report captures the industry’s resilience amid volatility, starting from a period of strong growth over previous years but moving into a challenging environment shaped by climatic events, fluctuating prices, and global demand shifts.
Notably, 2023 saw record lamb production and slaughter numbers, partly driven by structural changes in carcass weights, and cattle slaughter levels continued to rise, aided by strong demand from the United States as it faced a domestic cattle shortage.
An El Niño event and positive Indian Ocean Dipole (IOD) brought drier conditions, reminiscent of the 2017–2019 drought, affecting confidence and prices across the industry. Despite these challenges, Australian red meat exports remained robust, driven by diversified export markets and strong processing sector performance.
This report is a valuable tool for evaluating the sector’s performance and broader economic impact. XytoVet’s expert team has reviewed the findings and presents this summary to simplify key insights for readers. For more details on how these developments could impact your livestock operations, feel free to contact us with any questions.
State of the Industry Report 2024 highlights
The Australian livestock operating environment
The “Operating Environment” section of the MLA’s State of the Industry Report 2024 highlights several key figures from 2022–23, offering insights into the economic landscape of Australia’s red meat and livestock sector. The industry’s turnover was reported at AUD $81.7 billion, a 2.2% decline from the previous year but an increase of 6.3% compared to 2018–19. Sheep farming turnover rose by 11.5% year-on-year, even as beef cattle farming saw a 7.9% decrease in turnover. Processing turnover increased by 1.2%, reflecting improved conditions following high livestock prices and tight supply issues.
The Australian livestock industry environment
2022–23, Australia’s red meat and livestock industry demonstrated significant economic contributions and resilience. The industry maintained strong global positioning as the second-largest beef exporter and top exporter of sheep and goat meat. Domestically, the red meat and livestock sector’s turnover reached AUD $81.7 billion, representing about 1.6% of the total key industry turnover in Australia, with New South Wales, Victoria, and Queensland accounting for the largest shares by state.
Economic data further highlights the sector’s value-added impact, with an industry value add of AUD $22.9 billion, despite a 15.3% year-on-year decline largely due to price drops and increased supply. The production sector, encompassing beef cattle, sheep, and feedlots, contributed 75.3% of this value, while processing and sales (wholesale and retail) comprised 16.2% and 8.6%, respectively. Employment data for 2022–23 shows that the industry directly employed 194,712 individuals and generated indirect employment for an additional 224,209 people in supporting businesses. This sector’s role is foundational, particularly in rural communities, representing nearly 67% of direct employment within the agricultural production sector.
These figures illustrate the industry’s essential role in Australia’s economy and underscore the importance of continued investment in its growth.
Want to learn more about how 2022-2023 industry performance stacked up against 2021-2022? Read our overview of last year’s report.
Australian livestock species performance statistics
Cattle: As of 30 June 2023, Australia’s cattle herd grew to 29.9 million head, with Queensland accounting for the largest share at 44.5%. Feedlot numbers reached record highs in the June quarter of 2024, with 1.4 million cattle on feed and national feedlot capacity utilisation at 87%. The industry saw 2.8 million grain-fed cattle turned off in FY2024, a 4% increase from FY2023 levels.
Sheep: Australia’s national sheep flock reached 78.8 million head, marking the largest size since 2007, with New South Wales holding 36% of the flock. In 2023, record-breaking lamb slaughter numbers reached 25 million head, while sheep slaughter rose to 10 million head, the highest since 2014. Lamb production increased by 12.1% year-on-year to 602,184 tonnes, and mutton production surged by 42.9%, reaching 247,065 tonnes, the largest year-on-year increase in a decade.
Key Australian livestock industry issues
In its Key Issues Snapshot, the MLA’s State of the Industry Report highlights the following key industry challenges and opportunities:
- Global Economic Conditions: Mixed growth expectations across advanced economies and emerging Asian markets, with lingering inflation affecting service and wage costs.
- Consumer Confidence: Varied regional trends; advanced economies show moderate recovery, while China’s economic slowdown has impacted demand for premium cuts, shifting focus to more affordable options.
- Trade Disruptions and Geopolitical Issues: The Russia-Ukraine conflict continues to drive up input costs, especially for grains and chemicals, and trade route interruptions have affected exports.
- Climate and Weather Events: The declaration of an El Niño has introduced market volatility, influencing livestock supply and pricing.
- Labour Shortages: Rural areas face critical shortages, with the industry relying on the Pacific Australia Labour Mobility (PALM) Scheme and Meat Industry Labour Agreement (MILA) to meet workforce needs.
- Supply Chain Price Transparency: Limited transparency often creates distrust between producers and other stakeholders, with an emphasis on improving grading systems and market reporting to enhance industry confidence and reputation.
Preserve genetic diversity and pursue genetic gain with XytoVet
In 2024, the importance of genotyping in the Australian livestock industry is at an all-time high, with substantial benefits predicted for those who adopt it in the year ahead. Genotyping plays a critical role in preserving genetic diversity, while also driving targeted genetic improvement in livestock breeding programs.
By analysing genetic variation, producers can identify and harness the most desirable traits in dairy cattle, beef cattle, meat sheep, and wool-producing sheep, ensuring not only enhanced productivity but also long-term sustainability for the country’s livestock industry.
Through advanced tools like genomic selection, XytoVet empowers producers to leverage genomic breeding values (GBVs) and genomic estimated breeding values (GEBVs) to achieve faster and more impactful genetic gain. These insights are integral to designing robust breeding programs that balance productivity with resilience, promoting both livestock performance and adaptability.
XytoVet has the expertise and resources needed to maximise the impact of your genomic testing strategy. Let us help you unlock the full potential of genotyping and ensure lasting success for your breeding programs. Contact us to discuss how your farming operation could benefit from genotyping.
