With the Australian cattle market bounding from strength to strength many in the industry have decided against resting on their laurels in favour of taking a gamble on high prices.
Charles Booth and his sister Alison Booth, Burunga, Wandoan, broke tradition and sold 173 mixed sex Santa Hereford cross weaners at today’s Roma store sale.
Mr Booth said the family had never sold cattle as weaners but current market circumstances made their decision a viable one.
“We normally grow calves out to a heavy feed-on weight of about 500kg and predominantly sell direct to Bottle Tree Feedlot but we’re making the best of a good thing selling them as weaners here,” he said.
“We’re noticing lotfeeders aren’t buying as many cattle and while we could have held onto these weaners we’d be risking the market dropping and end up stuck with them.”
Mr Booth’s heifer portion sold for an average of 354c/kg for 289kg to return $1022/hd. The 74 steers topped at 426c/kg, averaging 387c/kg for 250kg returning $967/hd.
Mr Booth said while the season had been “sensational” with barely a frost all winter, sometimes it paid to do the unexpected.
“We’ve got beautiful green feed at home and a crop of clover like never before but we wanted to take the chance (on high prices) while it’s there,” he said.
“We were only having dinner last night and talking about the price of beef. Cattle prices have sky rocketed but the cost of a steak at a restaurant hasn’t really gone with it and I wonder if that’s sustainable.
“I think the price will come back to a level where we’re all happy with it because without trying to sound pessimistic prices are a bit scary at the moment.”
Mr Booth said seasonal margins also played a part in the decision to sell weaners and destocking was a positive move in fear of a return to poor seasons.
“I think it pays to not be afraid to divert from your normal management plan when opportunities present themselves,” he said.
“Being inflexible can be old fashioned- sometimes you’ve got to take a chance and play the market.”
