While most global beef price indicators are easing as a result of growing global beef (and meat) production, Australian beef cattle prices, have been getting higher and higher, simply because the number of cattle available has fallen to a 20-year low.
Australian Livestock Markets Association (ALMA) Northern and Western field officer Ian Lovegrove said these conditions have been reflected at a state level in Queensland where prices attained for cattle sold through the saleyards have been excellent compared to 2015.
“Producers who managed to hold onto their cattle during the drought are receiving great prices,” Mr Lovegrove said.
“The competition has been much better this year in both the store and prime categories,” he said.
He said the condition of cattle in areas of the state effected by the drought has played a big part in what cattle can be accepted into saleyards now with the restriction guidelines that have been put in place by Meat & livestock Australia (MLA).
“If cattle don’t meet the MLA standards they can’t be accepted for a sale, so cattle that are being accepted are achieving higher values.”
MLA’s latest cattle industry projections show that the low availability of cattle is expected to continue through 2017, but as the national cattle herd rebuilds beef production should start to increase again in 2018.
“I’d say most producers will be holding onto their breeders to build their herd numbers back up, now that conditions are better across most of the state.”
Mr Lovegrove expects saleyard cattle prices to remain the same in 2017 with some slight fluctuation possible.
“The global demand for Australian beef is still very strong, which has been seen by southern markets feeding the live export industry this year."
He said the export market has been the saviour for northern producers this year, but producers in that region are in a much better position now then they were over the course of the last four years.
“The sad part is that producers who had to destock during the drought sold into a low market, and are now having to pay the current higher prices to restock.
“Most of these graziers will have to wait two or three years to start seeing a return on their investments.”
He said their is currently a high degree of optimism among producers in relation to the saleyards they attend for store and prime sales.
“People are very pleased with how the saleyard operators around the state are conducting their businesses.
He said the overarching commitment to animal welfare while cattle are situated in the saleyards is receiving a lot of praise from producers he’s spoken to.
ALMA addresses key issues that have the potential to impact on the viability of the saleyard and lairage industry. It does this with the support of the industry and is recognised by government and industry as the united single national voice that speaks for and on behalf of the industry.