Today, the Australian Bureau of Statistics (ABS) released the Quarter 2 2026 slaughter and production numbers for red meat and livestock.
This reporting provides us with detailed insights into how the first half of 2026 has performed and where production numbers are sitting, albeit six weeks delayed. This article analyses all the key results reported and what it means for the beef industry.
Nationally, total quarterly adult cattle slaughter reached 2.521 million head, the highest level of any quarter since Q3 1978.
Comparing Q2 2025 to Q2 26’ - slaughter rose 8% or 183,400 head year-on-year. When converted into weekly volumes, this translated to an average of 194,000 head processed per week.
An important acknowledgement here that there is a 25.4% difference between weekly volumes reported by Meat & Livestock Australia’s NLRS and the actual volumes reported by ABS.
On a state level, all sorts of historical highs were set;
To give context of the growth in processing throughput between time periods, quarterly slaughter in Q2 2022 was in the third percentile on record, Q2 2026 slaughter was in the 98th percentile on record.
Importantly, aside from these strong results, what is evident, is that processors across the eastern seaboard (QLD, NSW, VIC) were again from a capacity level all above 97% relative to the past 10 years of slaughter performance.
What this tells you, is that the major states, which account for 89% of total cattle processed in Australia, are operating at full capacity relative to 10-year performance. A key aspect to understand from Q2’s results, particularly relevant when QLD and the north are experiencing favourable seasonal conditions.
Underpinned by stable carcase weights, beef production on a quarterly basis reached a new record high in Q2, with 780,620 metric tonnes of beef produced.
Comparing that result to the same quarter in 2025, production has risen 8%. For the first half of 2026, Australia has produced 8.7% or 114,000 mt more beef than H1 2025.
The volume produced locally is the direct driver of why we have seen beef exports in the first half of the year continuously break monthly records.
Despite Victoria only accounting for 11% of the total national herd (Source: November BPIS Report), in Q2 2026, VIC accounted for 23.6% of total quarterly slaughter.
What this demonstrates, is how significant the pull is from Victorian processing plants, sourcing cattle outside of its own state. Anecdotally, the market knew this dynamic was occurring, yet the data here confirms how significant that draw of cattle from other states and regions, most notably northern Australia, truly is.
In addition to that, Victoria has been experiencing an exceptionally favourable 2026 seasonally. So clearly, the stock being processed in the state are not local cattle.
Aside from all the numbers that come with these reports, there are several key aspects which this data release which are poignant for the sector to understand.
Firstly, acknowledging that seasonal conditions and turnoff are contributing here – the supply picture and volume of cattle processed, which is something I’ve mentioned multiple times in this column is a clear indication of the herd size in this country at present, and the number of cattle available to be sold.
Secondly, processors are handling these large numbers of stock sold, but are operating very close to 100% capacity. This is important to acknowledge, because northern Australia has experienced one of, if not their best wet season in memory – meaning turnoff from the major cattle region of the country has not been “drought stressed”. Something to consider for the broader market picture from a price and risk perspective.
And finally, the processing share and role that different states play, such as Victoria and how its increasing pull of cattle out of Northern Australia has become so pronounced in the past two years. Despite it only holding 1/10 of the national herd, it accounts for more than double that in kill numbers – indicating that the market pricing, relationships and supply chains the state and its processing businesses have structured is in direct competition with more local, northern processing operations.
The Australian beef industry from a production perspective, is performing the best it ever has.
Capacity remains front of mind for me - particularly considering the fact that Queensland and northern Australia have experienced such good seasonal conditions.
Victoria remains a very important cog in the east coast processing picture - evidenced by its draw of cattle from the north and its contribution to total throughput.
Ripley Atkinson's experience in the red meat industry and current role at StoneX developing price risk management tools for Australia’s sheep and cattle sectors ensures he delivers unique, whole of supply chain insights and analysis across key factors such as prices, supply, production and the drivers of the sheep and cattle cycles.
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