High hopes for strong result

A mild winter, solid spring and wet summer have highly improved the condition of the steers and heifers to be offered in the Omeo, Benambra and Ensay sales.

Producers in the high country suffered through hard times in the past few years with poor prices making it hard to survive. However, survive they did, and 2015 will be their year.

Increased export competition in the physical market has improved in early January, and continued into February, despite record saleyard numbers.

The major competition for the annual high country sales in March comes from steer and bullock fatteners, and at times feedlot and backgrounding for feedlots. The ideal situation is for northern producers, feedlots and backgrounders to head south and give solid competition to southern fatteners.

Many are saying that this is the year, and this may well be true. January weaner sales have produced some amazing results, on the back of high returns from fat cattle sales. Bullock and steer fatteners from Gippsland, the north east, and central Victoria, which generally support these sales to the hilt, have money in their pockets after averaging $1200-$1700 per head for their finished product.

Many buyers come to the high country sales for the quality and breeding of the cattle, and for their ability to fatten consistently, year in, year out. Many like to purchase from the same vendors each year, as the results are measurably high.

During the past two years, northern buyers have stayed away in their droves due to the extending drought. Pre-Christmas the talk was all about Queensland and NSW getting rain and restocking. This includes breeders, feedlots and backgrounders, and as we have seen from January on, "the time is right".

Producers can rightfully expect to have a ripping year. Quite obviously, the northern competition will play a big part in this outcome. However, if for some unknown reason this fails to eventuate, given the returns to Victorian producers for their finished steers and bullocks, competition will still be strong.

Equally, the good season in the high country has put kilograms onto each beast, and this will only add to the added dollar value, compared to the previous year.

There are several other things to note. One prominent South Gippsland steer and bullock fattener, who always is a strong contender at these sales, pre-purchased six B-double loads of steers just before Christmas offering a bonus price for February delivery. The steers they purchased would normally have been sold to a NSW feedlot, so while this producer may not need as many steers from the calf sales, the feedlot may.

Potential buyers can expect to have more steers and heifers to compete over this year. The increase in fat cattle prices, and consequent large yardings at the earlier weaner sales, has given many hope, and more heifers will be offered in 2015.

David Hill, Elders Omeo, said the Omeo yards would be full this year, and the other sales would have similar numbers to previous years.

For a heads up on the competition, one only needs to try and find accommodation in Omeo and surrounding areas. People will find there is little or no accommodation left, and some may need to travel from Bairnsdale this year.

Northern buyers will be at the sales this year, and their competition will depend on price, as their cartage costs are a lot higher than the locals. Then they have to determine how much cattle they need.

One thing is for sure, those selling cattle this year, can look forward to prices way above those of 2014.