Chopper prices: Cattle market veteran says profit margins extraordinary

Greenham’s livestock manager has witnessed dairy cattle prices rise and fall over five decades — but nothing compares to 2022.

Chopper prices are more than keeping pace with the buoyant beef market, according to an industry expert.

Greenhams livestock manager Graeme Pretty says prices for chopper cows — hovering around the $2000 per head mark for an average weight chopper — were at the highest point in his 50-year career.

The livestock industry veteran told The Weekly Times a confluence of factors such as raging world demand and top seasonal conditions were behind the top dollar figures.

Greenham’s Graeme Pretty.

“I’ve been in the job since 1970 and I’ve never seen the market as strong as this. It’s come close before, but everything is pointing towards higher prices,” Mr Pretty said.

“World demand for beef is sky high. Supply and demand is always a factor in pricing and the world can’t get enough beef at the moment.

“The other thing pushing prices is the seasonal conditions. In most parts of Australia, it was an excellent season: the grass was growing as high as the fence.

“These things are cyclical and I’d expect things to calm down in the coming months. But at the moment it’s on a roll.”

For an average 500kg chopper, Mr Pretty said the range was between $1800 and $2200 per head with $2000 a rough median.

Comparing the market to 12 months ago, the Greenhams manager estimated the chopper range in January 2021 at $1400 to $1500 a head.

“Getting up to $1700 to $1750 a head (for choppers) was the absolute maximum 12 months ago,” Mr Pretty said.

“The market is easily passing that now. Some dairy farmers may well decide to sell now. “Others may hang on until things dry out more in the next few months.”

Meat and Livestock Australia’s national heavy dairy cow indicator is sitting at 264c/kg liveweight, up 11c/kg on the same time last year, while light dairy cows are at 199c/kg.