Inside this issue

Cattle Country the Territory Pastoral Industry

Cattle properties in the higher rainfall regions of the Northern Territory are, for the most part, owned and operated by large corporations. In the southern parts of the Territory, families have continual attachment to the land, with properties often passing on to the next generation.

It is an industry that employs around two thousand men and women from across the Territory. While the cattle appear to roam freely across the landscape to graze, they are, in fact, carefully managed and moved from paddock to paddock to efficiently utilise the native pastures.

When the cattle are ready for sale they are ‘mustered’, often by helicopters, working in tandem with vehicles or horsemen on the ground. The cattle are loaded into huge three-trailer road trains to be transported for sale, often hundreds of kilometres away, and exported to Asian buyers in the live cattle trade through the port of Darwin. Others are destined for the domestic markets interstate.

Cattle for live export are loaded onto purpose-built ships and transported to ports only a few days sailing time away in Indonesia, the Philippines or Malaysia. There they are cared for in well run and efficient feedlots where they are fattened on feed stuffs, such as yeast, pineapple and other agricultural by-products until they reach market condition.

Cattle production is the Northern Territory’s key primary industry sector worth around $250 million to the Territory economy annually. It is the principal contributor to the Territory’s Gross State Product and the hub of economic activity in regional centres. Herd numbers and cattle turn-off have increased significantly over the past 20 years with the industry making major productivity improvements through enhanced management practices. Approximately 550,000 head of cattle a year are turned off for finishing and processing into both the interstate and live export markets making a significant contribution to the Territory’s economy.

Growth trends for the pastoral industry are very positive into the future, continuing its consistent growth trend. Producers estimate that new infrastructure and more refined management practices and improved technologies will lift the Territory’s overall future cattle carrying capacity, and value to the economy.

The burgeoning middle class populations and increasing incomes in a number of South-East Asian countries are driving increasing levels of consumption. The Territory, only a few days sailing time away, is strategically placed to be their major supplier.

In the foreseeable future, the demand for beef in Asia will continue to support the live export trade. Cultural attitudes within South-East Asia are still orientated to freshly slaughtered meat from wet markets, with an increasing preference for beef. The live export trade is underpinned by the complementary nature of breeding animals in Australian rangelands and then fattening them in South-East Asia.

The live cattle trade took more than 272,000 head of Territory cattle into South-East Asia in 2010, with about 250,500 head going to Indonesia. Over 90 per cent of the Territory’s export trade is destined for this market. Due to the recent trade suspension to Indonesia for live cattle the Territory Government and cattle industry have been focusing their attention on maintaining existing markets and establishing additional markets in South-East Asia.

Creating new markets requires a systematic approach with the establishment of key relationships in both countries. This can only be achieved through high level coordination between government and industry. Following an initial market evaluation further studies are undertaken to ensure prime economic market drivers are strong. This is followed by a thorough education and training program to ensure any new overseas cattle ventures handling Australian cattle operate under industry best practice.

The most recent example where this approach has been taken is in the development of the export trade into Vietnam.

A number of senior Territory Government and industry delegations have visited Vietnam over the past few years. In 2010 a delegation from Vietnam visited the Territory to gain an understanding and appreciation of our pastoral industry and the live export process.

Subsequently an initial consignment of 945 Territory cattle has been shipped to northern Vietnam. When the cattle arrived officers from the department of Resources were there to assist with advice on animal handling and feedlot management. Together with industry, they continue to provide advice and assistance to the Vietnamese.

The Department of Resources in conjunction with the Chief Minister’s Department are also working with another Vietnamese company providing technical advice in the development of a beef cattle enterprise in Central Vietnam.

The Northern Territory Cattlemen’s Association, the Territory’s pastoral industry representative group, believes that over the next decade there is potential for the Territory cattle herd to increase by 30 per cent. This increase in the total herd can be achieved through a number of factors including improved management practices, new technologies for more efficient land use as well as improved access to new infrastructure, land and water resources. It believes that industry expertise will continue the promising outlook for the Territory cattle industry.