Young cattle prices reach new record, as drought shortages bite supplies

A new record for young cattle prices has been reached. It comes as industry experts say the road ahead remains long in the face of drought recovery.

Prices for young cattle continue to break records as producers scramble for livestock. PICTURE: Chloe Smith.

UPDATE: The Eastern Young Cattle Indicator has reached 910.17c/kg, breaking a new price record.

It comes as young cattle are now making more than 900c/kg in some of Australia’s saleyards, led by northern centres, where drought shortages continue to bite supplies.

In southern sales last week the trend continued and in a store cattle yarding at Ballarat prices reached 780c/kg, and at Mortlake, up to 750c/kg for lightweight store condition steers, as conditions turn wintry in Victoria.

The Eastern States Young Cattle Indicator reached a record of 907.75c/kg yesterday, after breaking the 900c/kg barrier for the first time last week.

But one industry leader, Cattle Council of Australia president Markus Rathsmann, said producers Australia-wide still had a long way to go when it came to drought recovery, particularly in the north.

“The cattle herd is going through a rebuild phase, which means producers aren’t selling much stock,” Mr Rathsmann said.

“They’re not getting big returns. The increasing price is a sign there just aren’t that many cattle in the system.

“The higher price does help, but if you don’t have the stock to sell, it makes little difference.”

Meat and Livestock Australia market analyst Stuart Bull said the strength of the EYCI was reflective of the influx of cattle after the Easter break.

“There was a sense of not having had a sale, and producers would have sensed that and capitalised on that,” he said.

“We’ve seen some rain as well, to reinvigorate that sentiment.

“In terms of market dynamics it’s a bit different. We saw a price jump after an influx of supply, which is unusual. It just speaks to the demand.”

Mr Bull said attitudes varied on what could happen in the market heading into winter.

“I would love to think we’d see more cattle … we’re already seeing cattle with great condition coming online,” he said.

“But people are expecting things to be quite tight with slaughter cattle coming on to the market in the winter period … that’s what historical data tells us. Current slaughter tells us we’re yet to see larger numbers online. It just speaks to the strength of that rebuilding sentiment.”

Mr Rathsmann said the national cattle herd dropped by about 4.5 million head in 2020 from a high of more than 29 million in 2013.

“We expect the national herd to bounce back in the next few years, which will benefit producers, consumers and the whole supply chain,” he said.

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