A MAJOR shipment of about 17,000 steers from southern Australia will depart the Vic port of Portland bound for Russia this week.
The steers – the third major live export order for Landmark International since November – have been sourced from southern NSW, Vic and SE of SA during the past couple of months.
Many have been sourced in the paddock, but Landmark buyers have been a major player in many weaner sales.
The mainly Angus and black baldy cattle weigh from 270 to 350 kilograms, averaging 310kg.
Prior to shipment, the cattle have spent at least 21 days in quarantine and met Russian export protocol, which includes two blood tests.
Through the shipping process the animals are inspected by ‘third party’ and Federal Department of Agriculture vets, ensuring the highest welfare standards.
They will arrive in a Black Sea port in 25-26 days and then be trucked to a USDA-accredited feedlot to be fed for 180 days.
Landmark International general manager Lach MacKinnon hopes regular orders such as these will provide strong market signals to grow the southern beef herd.
“It is a good thing for producers to have another alternative especially when there are a lot of cattle which come on the market in a short time, as happens in the southern weaner sales,” he said.
There are specific orders for the southern live export market which are “more about quality than quantity”.
“Health status is obviously important but the potential to build muscle onto a carcase is also of a high priority for the steers we are buying.”
The young cattle are shipped to Russia between October to April, with conditions less favourable to ship cattle through the Suez Canal during the Northern Hemisphere summer.
Mr MacKinnon says Russia has a strong appetite for Australian cattle ensuring “steady demand”, but acknowledges low oil prices may dampen demand.
“Russia’s economy is based on gas and oil, so with prices dropping to about $50 a barrel, the Ruble has taken a dive to the US dollar so the next 12 months could be interesting,” he said.
Mr MacKinnon foresees strong demand for breeding heifers, especially Angus, but says it will be “very much a wait and see” for China in the next six months.
Landmark International has just filled a Chinese order for Angus heifers and is buying commercial British Breed heifers in the 250-350kg range for a non-specific order.
“Whether you are trying to supply cattle for a feedlot, live export or other any other market, cattle are at a premium,” Mr MacKinnon said.
“You don’t have to be Einstein to work out the protein game is the one to be in.”
