Cow prices raising questions

MLA's weekly report showed the FAS price for 90CL grinding beef has reached 564 cents a kilogram.

Cows that are best suited to fill this particular export order are the leaner one- and two-score cows, which have less fat, require less time in the boning room and create less wastage for processors.

Dairy cows fit well into these criteria, as do the thousands of poor, drought-affected cattle in the northern States.

Why then are these selling so poorly by comparison with the end result?

Cows that best suit this export order are currently making 160-285c/kg carcase weight at the saleyard, and even given the higher cost of boning and the lower meat yields, there remains a large gap in the sale price for export.

Supply has a lot to do with the current price trends at the saleyard, but this not does not include only the supply of cows.

We are now at the end of July, which can be a quiet time for processors.

Supply is a lot bigger year-on-year but most processors slaughter a range of cattle, most of which are in near-record numbers for this time of year.

The National Livestock Reporting Service (NLRS) shows top prices still being above 160c/kg liveweight, but a lot of the meat from these fatter cows doesn't reach the US market.

This week saw increased numbers of cows selling at equal or cheaper trends, purely because of supply – but not just in Victoria.

More cattle are being trucked south from the Queensland border and numerous processors are attending markets up to and including Dubbo, NSW, to buy from the exceptionally large offerings.

Dubbo agents offered 6450 head last Thursday, and Forbes, NSW, had its largest yarding – about 3000 head – for many years.

Wagga Wagga, NSW, agents offered 4800 cattle last Monday, and all NLRS-reported markets were larger in number.

The NLRS reports that quality is slipping in a lot of the markets, but Dubbo, Forbes and Wagga have a large supply of crop-finished steers and heifers coming forward.

These cattle are selling well, as has been noted in several reports.

At Pakenham last Monday, supplementary-fed or grain-fattened cattle – many from certified feedlots – sold at 200-217c/kg, and these figures were attained at numerous sales.

Processors are keen for better-quality cattle weighing more than 450kg lwt and paid 190-214c/kg for grass-finished steers and 170-195c/kg for similar heifers.

Where the market was coming unstuck was in the plainer-condition cattle, with steers selling at 160-195c/kg and heifers 140-165c/kg lwt.

Vealers were scarce in number – the few sold made 200-221c/kg lwt.

Leongatha is the bullock-selling capital of Victoria, as evidenced again at last Wednesday's market.

Prime C3 and C4 bullocks sold to 214.6c/kg, and grown steers reached a little higher.

These prices are unequalled anywhere else in Victoria or interstate.

Manufacturing steers and bullocks were selling well with the Asian market pushing demand.

Heavy and crossbred bullocks sold at 170-196c/kg, while Friesian bullocks sold to 178c/kg, with most 160-172c/kg lwt.

It was noted at Pakenham on Monday that a pen of Angus bullocks (838kg) sold for 195.6c/kg, or $1639 a head.

Demand for feeder steers and heifers waned slightly, which was reflected in the prices.