One of the challenges of working in the livestock industry is that we never see things stay the same. Each year markets change, seasons change, methods of selling change, land use changes, laws change, ownerships change and so on. As the selling season of 2018 in Gippsland nears an end we have experienced more change in just a few months.
The season in south and west Gippsland was excellent in the first part which allowed orderly marketing and producers could choose to take a price or add extra weight to cattle to compensate for the lower prices. Unfortunately the season closed in after little rain from February onwards and marketing stock quickly became much harder. Previous years when seasons dried off we would see spikes in saleyard numbers with bullock yardings up to 2000 head and similar numbers of trade cattle.
Things were somewhat different this year with a peak of about 1200 bullocks and very few times above 1000.
This selling season has seen further increase in selling finished cattle over the hooks. Many of the major processors are marketing their product branded, and to do so require stock to be consigned as part of quality assured programs to meet their accreditation and specifications. Prices being paid for these cattle have been tracking higher than saleyard prices and this “branded” segment of the market is growing, with many processors having their own niche programs.
The down side of this is it does take big numbers of quality stock from markets making achieving higher prices more difficult. It also means processors have enough over the hooks and their competition in the yards diminishes.
In the last of few weeks there has been a lift in prices at the yards for the best quality cattle as is often the case when supply tightens and competition tends to grow. It is a big plus to have a strong saleyard price which will be reflected in pricing for all types of cattle being sold.
One of the big growth areas in recent times is the number of store cattle going through local saleyards.
Sales of store stock this season has been tracking well above fat cattle rates and the prices at Leongatha and Pakenham have been consistently strong. Apart from local restocking demand the live steer order to Russia has underpinned the market and breeders have seen excellent results. The live export order for Angus heifers to China has also seen good returns for producers, and particularly for cattle around 250kg or better.
Feedlot inquiry for suitable cattle has remained steady all season and improving as less of these types are now available. Although it has been a tough selling season, with good marketing strategies and some well-formed relationships we have helped our clients maximise their returns.
