No bull as cattle are selling like sports cars

Cattle are selling for as much as $400,000, as the buoyant beef market boosts confidence in the sector and the demand for top genetics.

Jono and Robyn Elphick raised a wagyu heifer that sold for an Australian record of $400,000 at their property outside Inverell, in northern NSW. Picture: Lyndon Mechielsen

Cattle are selling for the price of sports cars as the buoyant beef market boosts confidence in the sector and the demand for top genetics.

Price records for different breeds tumbled regularly last year, with the selling price of some bulls doubling previous marks. Among those to benefit were wagyu breeders Jonathan and Robyn ­Elphick and Peter and Sandra Krause from Sunnyside stud near Inverell in northern NSW.

They sold a heifer for $400,000, the most ever paid at auction in Australia for a cow or bull of any breed – and roughly the going price of a ­McLaren GT.

They say it shows the confidence generated by favourable weather and strong beef prices.

“I think there’s money and confidence in agriculture,” Ms Elphick said. “You only have to look at the corporate space and how much investment there is coming into agriculture with super funds buying to make a return.”

The Eastern Young Cattle ­Indicator, a guide to general cattle markets in Australia, hit a record $11.91/kg a year ago. It has since dropped to $7.85/kg as cattle supply has increased.

“People are making an incredible amount on feeders so if that stays up it will keep the demand up and people are happier to spend more for a bull,” Mr Elphick said.

When it comes to wagyu, Ms Elphick said the breed’s value was being driven by increased international interest in Australian genetics. But even she was surprised when their 13-month-old heifer sold to Yulong Invest for $400,000 at the Elite Wagyu Sale in April, eclipsing the previous ­record of $325,000 set in 2017.

“It certainly surpassed our ­expectations,” Ms Elphick said.

Bidders from overseas and ­locally competed to secure the heifer, which had impeccable pedigree and scored highly in measurable traits.

Wagyu beef, known for fat marbling properties, can fetch ­extraordinary prices in butcher cabinets and restaurants.

Breeding wagyu involves ­intensive study of genomics and technical analysis of traits to ­create high-performance animals. It can involve IVF, to ­increase the use of semen from elite bulls, and embryo transfers to surrogate cows to maximise the number of calves born from cows with desirable genetics.

With a value of $400,000 it is unlikely farmers will risk the heifer having a calf on her own but will provide embryos to be transferred into other cows.

The rise in embryo transfers has been credited for the increase in prices paid for elite cows, which once sold for less than bulls. In 2021, Sunnyside topped the Elite Wagyu Sale with a $65,000 heifer. Last year, the average price paid for heifers was $68,000. And it’s not just wagyu cattle yielding big money. Since 2021, records tumbled on bulls including angus ($280,000), charolais ($265,000), santa gertrudis ($250,000), droughtmaster ($220,000) and hereford ($160,000).

The big money in bulls is partly driven by the huge sums – often $10,000 plus – paid for straws of their semen, which are then used for IVF.

Meat and Livestock Australia market information manager Stephen Bignell said the easing of the drought in 2019 prompted farmers to rebuild herds. “When people had some good seasons and started rebuilding, that’s given them the opportunity to really decide to invest in their genetics,” he said. “That also ­reflects on the outlook they have for the industry.”