Beef outlook optimistic

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Beef outlook optimistic

BEEF cattle prices have lifted recently thanks in part to the onset of warmer conditions and the possibility of widespread rain in the north.
Eddie Hams from Landmark said breeders have been struggling last couple of years, and was pleased to see them making some money now
“They need it, but it is also good for the whole area. If farmers are doing well, it is good for the town. People will spend money if they have got money,” he said.
“Prices are the highest they have been this season; actually they are the highest we have seen in a long time.”
Mr Hams said rain in the north has seen less cattle enter southern markets, meaning fewer cattle to meet demand.
“From now on prices will get a little bit dearer but I never predict it to go too high,” he said.
“Prices will continue to go up; everybody wants a few cattle for spring to eat the grass. A lot of people are buying cattle in anticipation of a good spring.”
Michael Foote from Elders said meat exports and the overseas markets were looking good, and supply was tight everywhere.
“It is affecting the whole country at the moment. All of the abattoirs want to keep working and kill plenty of cattle because the export market is so good at the moment,” he said.
The Australian cattle herd is currently 27.7 million, however is tipped to fall to 26.1 million by July 2015, caused by the drought in northern states which has devastated the area and forced farmers to sell off stock.
This sell off kept prices low right across Australia. Now with widespread rain in drought stricken areas, cattle farmers will be looking to re-stock, meaning higher prices across the board.
Mr Foote said, “All indications suggest the market is heading in right direct but the weather is the biggest thing that seems to dictate it all.
“It is probably the time of year when store cattle start to get dearer and everyone is keen to start to secure a few numbers.”
Mr Foote said store cattle are around $100 more than they were a few months ago, which is good for the breeders who produce those weaner cattle.
“Breeders haven’t been getting enough in the last six months or so, but traders have been doing okay,” he said.
Livestock agent David Phelan said he has seen this much money in the past at this time of the year.
“Our worst problem is we haven’t been getting quite enough money for our trade cattle and as a result, the margin for the fat market hasn’t been as much as it could have been,” he said.
Mr Phelan said the outlook for beef cattle was good according to Meat and Livestock Australia.
“But we have seen them make predictions before, and then within a small period of time things have changed,” he said.

Going up: Landmark livestock agent Eddie Hams said prices for beef cattle have lifted, which is good news for local breeders.

Going up: Landmark livestock agent Eddie Hams said prices for beef cattle have lifted, which is good news for local breeders.

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Posted by on Sep 9 2014. Filed under Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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