Rural
Cattle industry in a ditch, but a bounce back is expected
THE cattle market in recent months has taken a downward turn with Australian herd levels reaching the highest since 2014 at 28.8 million that has levelled out the market with below average prices according to Corcoran Parker livestock agent Reiley Murtagh.
He said favourable conditions for production in a vast majority in Australia from 2020 to 2022 has drastically increased the number of cattle retained and the volume produced.
“From August 2022, restocking steers and heifers have seen a dramatic price change with Angus cattle 300-350kg selling for $6-$6.50c/kg compared to current prices of the June store sale of $3-$3.50/kg,” Mr Murtagh said.
The market has recently seen a tough correction with the current circulation of live export and future prospects for export meat sales on an international level.
Mr Murtagh believes there are a number of reasons why the industry has slowed down but he has confidence there will be a shift.
“Market prices have held steady over the last few months but remain lower than previous years,” Mr Murtagh said.
“There is mixed reaction among cattle producers with cattle being sold too soon to cut their losses and buy back in the market with better stock.
“Other producers are hanging onto their cattle to build cattle weight to around 650kg to make a bigger profit which has a potential of fewer cattle available at a sale if multiple producers do this.”
Recent rainfall has put optimism into local producers, adding a boost to farmland and paddocks.
“Rainfall has been widespread with totals varying in our region,” Mr Murtagh said.
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“Recent rains will boost winter growing conditions which is a bonus.
“We haven’t had too much rain at all with excess falls showing no impact on property.”
Australia being the in the meat industry continues to raise the bar of it’s high quality meat and many local producers see a positive outlook for the industry.
The future for meat export including live export puts a strong balance in the market and will reflect in the months to come with stronger prices at the cattle sales seeing the market shift by spring, according to Mr Murtagh.