24/12/2022
This case study first appeared in the Summer 2022 edition of Meat & Livestock Australia's Feedback magazine.
The Northern Territory’s vast Barkly region is one of the biggest suppliers of Australian cattle for live export, with the iconic Newcastle Waters Station a key producer.
Owned by Consolidated Pastoral Company (CPC), Newcastle Waters is the largest of the company’s eight Australian cattle properties and supplies cattle to one of Australia’s largest live cattle export markets, Indonesia.
Between 60,000 and 70,000 head of cattle are turned off annually between Newcastle Waters and CPC’s Carlton Hill Station at Kununurra WA, for live export from the Port of Darwin to two feedlots in Indonesia.
CPC holds 90% interest in the feedlots at Lampung and Medan, which have a capacity of 28,000 head and 7,500 head respectively.
Over the past seven years, Newcastle Waters has transitioned its genetic base from 100% Brahman to a composite herd comprising Angus/Boran/Wagyu genetics, crossed with Brahman.
CPC General Manager – Stations, Henry Burke, says the aim is to maintain a Bos indicus influence of up to 50% in the herd, providing greater flexibility to meet a range of markets.
“In that genetic process, we were looking to increase fertility, producing what we call wet re-breeds, so a cow with a weaner at foot and back in-calf,” Henry said.
“From a market suitability point of view, the genetic mix gives us two options. We can export 320-340kg feeder cattle to the feedlots in Indonesia, or we can send them to Isis Downs in Queensland for backgrounding to take them up to a 450kg animal suitable for Australian feedlots.
“The majority are exported to Indonesia. With our early weaning program, we can get weaners at 100kg, develop them to a minimum 150kg, then put them into the paddock and after the next wet season they can go to Indonesia at 320-340kg. That’s a total turnoff within a 12-month window.”
Wet season rainfall dictates many of the management decisions at Newcastle Waters.
From October 2018 to April 2019, the NT recorded its driest and hottest wet season since 1992. As a consequence, the station was destocked down to just 8,000 head in 2019.
After the 2019-20 wet season, more than 20,000 head on agistment in the Katherine region were returned to the station.
CPC Group Manager – Barkly, Greg Dakin, said the station was still feeling the cumulative impacts of wet seasons that had not materialised.
“We normally run about 18,000 breeders, but we’re running about 14,000 at the moment,” Greg said.
“We don’t do rotational grazing, but we do spell and graze country as required. We haven’t really been able to do that because the country is still trying to recuperate.
“The station can carry about 75,000 head on a 75% capacity. However, we’ve only managed to maintain a herd of about 40,000 on average across the last five years, due to dry conditions.”
Having access to the feedlots in Indonesia also guides management decisions. Besides feeder cattle, all of the station’s cull herd bulls and cull PTE (pregnancy-tested empty) cows can be exported to Indonesia.
They follow strict protocols to prepare cattle for live export, including application of insecticidal ear tags, backlining, and relevant vaccinations.
Once they leave the station, the cattle are kept in quarantine for three days at Santavan Export Yards, Darwin and Tri-Nations Export Yards, Kununurra, and must pass inspection by a Department of Agriculture, Fisheries and Forestry (DAFF) vet before being loaded on to a ship. Any animals deemed not fit to travel are removed from the consignment.
Newcastle Waters employs just over 40 staff at its peak, with a commercial stock camp, stud camp, boat camp and early weaning program team, in addition to bore runners, mechanics and other station staff.
For Henry and Greg, the live export industry is vital not only for northern producers but the entire Australian beef industry.
“While there are limited numbers going at the moment because of Foot and Mouth Disease (FMD) in Indonesia, it’s critical we have access to live exports to hold the floor in the market, particularly for the northern facing producers with Bos indicus cattle,” Henry said.
“Even though we’re steadily changing our herd, we’ll still have an animal that’s suitable for live export. It’s a key market for us and it’s always going to play a big part of Newcastle Waters,” Greg said.