SOME big prices are being paid for bulls and on-property averages are reaching figures never seen before in Australia, but where are producers making that money back?
The big prices span all breeds – beyond Millah Murrah’s huge $16,348 average at Bathurst last week there was $70,000 paid for a Poll Hereford bull at Bowen, Barraba; $57,000 for a Santa Gertrudis bull sold by Kuloomba stud, Rochester, Victoria, and three Shorthorn sales last week – Royalla, Yeoval; Yamburgan, Narrabri, and Futurity, Baradine – together grossed more $2 million.
John Settree, Landmark, said recently the standard upset price had lifted by $1000 on a year ago, now sitting securely at $4000 for a bull.
However, it was the commercial market where the enthusiasm had really spiked, with an increased focus on longer term quality.
Pat Cleary, Cleary McDowall Elders, Moss Vale, believes everybody is upping the ante on their commercial operations and will pay for the better genetics knowing they will get the better prices at the other end. He said three years ago producers were getting $1.80 to $2.10 a kilogram for a feedlot steer.
“Now all of a sudden they are getting $3.50 to $4.10. Two years ago clients were paying $3000 for a bull, now they are paying between $7000 and $12,000. They want to run the best cattle they can because they can see the game plan ahead – those that do the best job will come out of this the best.”
Millah Murrah principal Ross Thompson said the industry was witnessing a new economy. He said commercial cattlemen were “cashed up and looking for quality”. “At all the sales I have attended this season, every time a bull steps into the ring with that little bit of extra quality, the bidding really heats up.”
Ray White Emms Mooney director Ben Emms, Blayney, said heifer bulls had been in demand and he suspects this is due to people joining more heifers as a way of re-building their herds. Mr Emms said buyers had also been targeting bulls with higher than average growth rates.
“On the Central Tablelands many producers are marketing their calves at the annual autumn weaner sales, so they want progeny that will hit the ground and keep growing,” he said.
Karoo Angus principal Annie Scott, Bathurst, said the bull market at her family’s on-property sale last Friday was certainly driven by the commercial cattlemen.
“With the EYCI (Eastern Young Cattle Indicator) still trading above 700c/kg (at 706.25c/kg early this week) it has given buyers the confidence to invest in buying bulls a little more than they may have spent in the past,” Mrs Scott said.
