With live export cattle prices remaining high for the start of this year, northern Queensland livestock producers are finding it hard to resist profitable sale opportunities.
Laurie and Marilyn Blacklock, Haddington, Julia Creek will be selling a large number of their weaner cattle into the live export market this year.
Mr Blacklock said live export steer prices are too good at present not to be taken advantage of as a profitable selling option.
“The live export steer job at the moment is almost to good to miss out on,” he said.
“We normally try to keep a few good steers to grow into bullocks, but it’s hard not to sell our weaners with 330kg steers attracting over $3.40/kg into the live export market,” he said.
Landmark’s live export indicator prices for Queensland had 260kg to 380kg Brahman steers to Indonesia at $3.60/kg live weight. Brahman-cross heifers 260kg to 380kg to Indonesia are at $3.30/kg live weight, while Brahman bulls 280kg to 380kg to Indonesia are being purchased at $3.40/kg live weight as of the week ending January 22.
Price indicators in the Northern Territory have 260kg to 380kg Brahman steers to Indonesia at $3.75/kg live weight and Brahman-cross heifers 260kg to 380kg to Indonesia are at $3.55/kg live weight.
“It’s also an advantage turning off more young cattle because it makes more room on the property for steers we do end up keeping to grow into bullocks,’ Mr Blacklock said.
“I can tell you that it takes a fair bit of land to fatten a bullock.”
Mr Blacklock’s major concern for the local live export market is the impact of competition from other red meats starting to gaining popularity in Indonesia, such as Indian buffalo meat.
“The Indonesian live export market could come back in terms of cattle prices this year if more buffalo meat is sent into the country,” he said.
“Even if the live export price for cattle to Indonesia does comes back, I believe we will still be earning a good amount of money for our cattle in the near future.”
Meat & Livestock Australia’s cattle analyst Ben Thomas said the tight supply of cattle for live export is expected to continue for the first half of 2016.
“Live export feeder cattle prices out of Darwin and Queensland for the past three years have been well above the long term live export feeder cattle price averages,” Mr Thomas said.
“Last year, the live export feeder steer price to Indonesia from Darwin was $3.43/kg live weight.”
The average live export feeder steer price to Indonesia over the past 10 years has been between $1.90/kg to $2/kg live weight out of Darwin’s port.
High cattle prices and favorable seasonal conditions have motivated the Blacklock family to consider expanding their cattle operation.
“If the right opportunity comes along then I would strongly consider expanding our cattle business,” Mr Blacklock said.
“It’s a good season across our properties at present with at least 10 inches of rain recorded and it’s been good rain to grow pasture.
“The storms seem to be still rolling across our properties, so we have been very lucky.”