Cattle gamble: Why cows with calves

Cows with calves bought by producers last year proved a valuable choice.

Producers who rolled the dice on cows and calves in 2019 are reaping the benefits. Picture: Madeleine Stuchbery.

PRODUCERS who gambled on buying cows and calves in 2019 reaped the rewards of their investment, according to data gathered by AuctionsPlus.

A recent report showed returns per head on steers since March this year now exceed the purchase price for cow and calf units in 2019.

AuctionsPlus chief market analyst Tim McRae said producers who decided to invest in cows and calves in late 2019 made a “calculated decision” that was now yielding results.

“It tells us two things. Those producers who were brave and resilient enough, who did buy cows with calves in the second half of 2019 when the drought was bad and bushfires were raging, that’s proved to be a very good decision,” Mr McRae said.

“That’s an interesting piece of analysis, to show how far the market has come, to now; you’re looking probably in some instances at selling the third offspring from that cow and you’re going to be ahead.”

The report showed in Oct­ober last year, cows with calves at foot sold to an average of $1334.

Just nine months later in June 2020, Angus steers weighing between 300-350kg in June this year, averaged $1403.

In January 2020, cows with calves at foot sold through AuctionsPlus at an average of $1373.

The same turned-off steer would have sold to an average of $1618 last month, according to the data.

RuralBank regional manager agribusiness Josie Zilm said she had experienced the benefit of investing in young cattle. “From my own personal experience, we bought pregnancy tested in calf heifers a few weeks back. I know prices are high, but we still see value in young animals with good breeding,” Ms Zilm said.

“They’ve got a long life ahead of them, we were prepared to buy in the current market … if you don’t get in now, in six months you’ll be six months behind.”

“It just shows how different things can be in 12 months, in the cattle industry, a lot can happen,” Mr McRae said.

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