Floods sweep away cows in Australia

01 March 2022 - 11:44 By Sybilla Gross
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Farmers in Queensland and northern New South Wales have rushed to relocate their herds to higher ground as rain that began falling in biblical proportions last weekend threatens loss of livestock.
Farmers in Queensland and northern New South Wales have rushed to relocate their herds to higher ground as rain that began falling in biblical proportions last weekend threatens loss of livestock.
Image: Bloomberg

A deadly deluge over eastern Australia is the latest challenge for agricultural supplies in the country as severe flooding pummels beef producers and upends critical transport routes in affected regions, leaving cows stranded in strange places, or even dead on a beach.

Farmers in Queensland and northern New South Wales have rushed to relocate their herds to higher ground as rain that began falling in biblical proportions last weekend threatens loss of livestock. The floods have forced temporary closures of major meat abattoirs, including JBS SA’s flagship Dinmore plant, which exports to more than 50 countries. The plant is set to restart on Wednesday, a spokesperson for the company said.

Already hamstrung by labour shortages and shrinking margins on account of soaring cattle prices and high input costs, processors are set to experience the brunt of the weather-related havoc as damaged roads remain shut, leaving staff stranded at home, according to Matt Dalgleish, manager of commodity market insights at Thomas Elder Markets.

That’s on top of two years of pandemic disruptions that stalled operations for months as waves of Covid-19 infections incapacitated swathes of the workforce.

“Shutdowns and stoppages will always have an impact on margins. We’ve got to continue to keep ourselves in these markets,” said Patrick Hutchinson, CEO for the Australian Meat Industry Council.

“All these small things remove that margin and at the moment I would ascertain we are probably still running at about A$200 (about R2,233) a body in the red.”

Abattoirs’ operations remained more or less resilient throughout the pandemic, according to Hutchinson, who said he expected the sector could withstand the current disruptions provided infrastructure has not been badly impaired.

While the weather event could be sufficient proof for companies to declare a force majeure on delivery contracts, Dalgleish said that would only become a more likely scenario if the poor conditions extended for longer than anticipated and closures were protracted for weeks.

Sorghum crops about to be harvested in southeast Queensland were also damaged and would likely lead to a reduction in quality and significant loss of value, according to Michael Guerin, CEO of farmer industry group AgForce Queensland. Wheat and barley plantings in the Darling Downs area were also hurt.

More stories like this are available on bloomberg.com


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