High country cattle prices fall dramatically. Here's why

Price falls of between $700-$1000 a head were reported at the five sales at Omeo, Benambra, Ensay and Hinnomunjie on Tuesday and Wednesday this week.

Elders Myrtleford livestock manager Stephen Street, who attended the sales to buy cattle, said the combination of factors drove the downturn in prices.

"Last year's record prices were unsustainable because the end product became too dear on the shelves for the consumer," he said.

"I think it's fair to say the market has over-corrected, because there is still a lot of last year's cattle in the paddock that cost $2000 or more and people won't see a profit on those.

"There were plenty of steer calves last year making $2200-$2400, and in comparison this year those cattle are making $1250-$1450."

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Volume buyer Pat Cleary, Elders Cleary McDowall, Moss Vale, NSW, bought 224 Hereford steers on Tuesday across sales at Hinnomunjie and Benambra.

The cattle were purchased for Willinga Park, Yass, NSW, which runs a grassfed operation for one of the major supermarkets.

He said buyers were exercising caution because of dry weather in NSW and Queensland.

"I think we got a surprise in the western district when those markets became cheaper than what we thought in January, and markets have continued to slide based on a lack of confidence in the outlook of the beef market," he said.

"We had a look at our book the other day, and prices are back to where they were in 2020-21, they're not back to 1994 levels.

"We knew we were operating above the world price for the last 12 months and now we're back to trading in a pricing bracket that is sustainable for everyone."

Veteran high country cattle buyer Graeme Ward, Albury, NSW, bought about 380 Angus, Black Baldy and Hereford mixed-sex calves to feedlot on day one of the sales.

His portion of cattle comprised mainly heifers and were bought for the Ogilvie Group, Naracoorte, SA.

"There was a tremendous demand on the breeding aspect, particularly at Benambra with the Hereford heifers, and their genetics have been getting better every year," he said.

"The surprise to me was the breeding prices at Benambra because people know about the quality of these cattle and it's hard to find top-quality breeding heifers."

Bullock fattener Graham Osborne, Officer, bought about 200 mainly Angus steers to send back to his South Gippsland-based operation.

He said all sectors of the beef supply chain were facing challenges amid the correction and a rise in the cost of living.

"The market has found a new level," he said.

"The grass fatteners and the feedlotters are not getting the price out at the other end so naturally they haven't brought the same money to the table they did last year.

"There would be some disappointments but it reflects what's happened across the state and the country and everybody is taking some punishment."

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