A previously soft demand for cow and calf outfits has swung sharply right with several young heifer breeding lines sold beyond $3000 on three occasions at Myrtleford on Friday.
Best priced were three-for-one outfits- heifers, with calves at foot and rejoined – however other females that were lower priced between $2200 and $2800 were either of an older age, only had calves at foot or were “not station mated” as the saying goes. These, in the opinion of some, were fully priced on the day when “splitting value” is analyzed.
Myrtleford agent, Dan Ivone, Paull & Scollard, described his $3000-plus outfit sales as being presented in “good calving condition”. That is they carried minimal in the way of surplus condition and would require plenty of assistance if subjected to harsh weather conditions.
However, with this year’s autumn providing ample pasture for the upcoming winter, it seems more producers have turned their focus towards breeding units as a more economical avenue of increasing on-farm numbers.
But stumping up $2500 to $3000 for cow and calf outfits has been hard for many to stomach in the past. But with steers to finish and heifers to join now costing north of $1200- $1400 the attitude towards acquiring breeding stock seems to have changed.
A quick review of the results off the screen (AuctionsPlus) this week has found, surprisingly, a reasonable number of PTIC and cow and calf outfits might still be considered affordable when the Myrtleford result was “$300-$400 above expectation”.
It is difficult to analyse selling rates for breeding stock because of the various breeds, bloodlines and calving dates dates etc. However for those who do treat cows and calves as a commodity a guide in cents per kilogram may be useful.
On Auctions Plus this week (in the southern zone) seven sales of PTIC all-breeds heifers were passed in or made to 413c/kg, average 390c/kg, five sales of PTIC all-breeds cows were passed or made to 354c/kg, average 295c/kg, four sales of cows with calves at foot were passed or made to 490c/kg, average 463c/kg.
This is not a science that I am peddling or believe will catch on quickly in the future. I have used it simply as a guide to breeding stock values now that supply is limited and demand is high and volatile. On another matter, this column has learnt this week with the high number of cattle on feed and the relatively low price of feed-grain that some pasture-fed cattle, which may have had some grain-assistance, have been released from pasture-fed contract agreements, as per an audit requirement.
This according to one processor has placed pressure on direct to works grainfed quotes which have slipped below pasture-fed hooks rates in recent days, and perhaps explains the softness in this week’s saleyard markets.
