NT cattle prices ’bitter sweet’ for some livestock producers

Due to a heavy demand for cattle and little supply, NT cattle prices soar to record highs.

TERRITORY cattle prices are sky high with the current price of cattle per head selling 30 per cent higher than this time last year.

The historic surge in price is due to limited cattle numbers in Australia and the demand of drought recovering producers expanding their herds.

Northern Territory Cattlemen’s Association chief executive Will Evans welcomed the record high cattle prices but noted some of the hardships for farmers which came with such a seismic change.

NTCA chief executive Will Evans says despite high cattle prices, some producers are struggling. Picture: Floss Adams.

“Only a few years ago we were seeing producers getting $0.80/kg for cows – now it’s almost $4/kg. Steers are over $5 and don’t look like coming back anytime soon,” Mr Evans said. “It’s important that people understand the market though.

“Darwin Port exports more than 400,000 head of cattle in a good year – last year we finished up in the 200,000s.”

Mr Evans said the price was a reflection of Australia’s shortage of cattle.

“As good as prices are, there’ still a lot of producers out there who are doing it tough,” Mr Evans said.

“While these prices are definitely welcomed there’s still challenges to get through.”

Happy fat cattle at NT station Newcastle Waters. Picture: Floss Adams.

Rabobank senior animal proteins analyst Angus Gidley-Baird said the change could be traced back to last decade’s years of drought in 2014, 2015, 2018 and 2019.

He said during those drought stricken years, livestock producers were forced into liquidation and sold, slaughtered, or exported their cattle to make ends meet.

“So we basically got down to, we believe, some of the lowest national herd inventory for 25 years,” Mr Gidley-Baird said.

“As a result of turnaround in seasons, we’ve got some very strong producer demand, looking to restock and that’s driven cattle prices up, but we’ve got very limited supplies.”

Mr Gidley-Baird said the main driver of the unprecedented prices was the domestic producer demand which was farmers looking to rebuild herds – he says this can be “bitter sweet” for farmers.

“A livestock operation is generally selling more livestock when it is dry to offload which tends to boost their revenues,” he said.

“But when a farmer has to go and replace his lost stock and is looking to rebuild his herd and he wants to buy cattle to replace the ones he’s lost, he’s having to pay a much higher price.”

Looking at the current cattle prices with an industry lens, Mr Gidley-Baird said it was “unsustainably high”.

“We’ve seen some pretty phenomenal beef demand domestically and globally,” he said.

“We will see them contract when our supplies lift and the producer’s urgency to restock disputes and the shine will just come off the market a bit.”

Originally published as NT cattle prices ’bitter sweet’ for some livestock producers