Dairy cow prices eclipse processor cow values

Victorian prime cattle markets have hit a new milestone as dairy cows have outpriced their processor counterparts amid growing US demand.

Dairy cow prices have crept above processor cow prices for the “first time ever”, an analyst says, while agents have lauded it underpinning store market prices.

Meat and Livestock Australia market information manager Stephen Bignell said the US lean grass-fed market and its demand for burger meat had pushed prices in Australia’s lean female market.

“It’s the first time ever that dairy cow prices are above the processor cow prices,” Mr Bignell said.

“On a state-by-state basis the dairy cow is essentially overwhelmingly a Victorian indicator, and the dairy cow is operating at 342c/kg and the processor cow is 373c/kg, but when you look at it nationally the dairy cow is 341c/kg and processor is 332c/kg.”

The processor cow indicator has jumped 50c/kg in 12 months, 30c/kg this month and 8c/kg this week to 327c/kg liveweight with a throughput of 5780. Meanwhile, the dairy cow indicator rose 103c/kg in a year, 64c/kg in a month and 20c/kg in one week at 342c/kg.

Mr Bignell said Victoria’s dry conditions meant a tighter cattle supply, but a stronger season in northern Australia and its herd rebuilding helped push prices.

He said current prices fell short of the 2021-22 increases, but followed a similar trend with rebuilding.

“Heavy steer records in 2021 were above 450c/kg, we’re sitting at 375c/kg at the moment,” Mr Bignell said.

He expected Australia’s cattle slaughter numbers to hit 9 million this year, with an Australian Bureau of Statistics report due in two weeks.

Alex Scott and Staff livestock agent Rob Ould from Wonthaggi said the prime market held strong at Leongatha, with cows fetching above 400c/kg last week and prices “getting stronger and stronger each week”.

“The fat job is ticking along very well. We had cows on Tuesday making 420-430c/kg, and the fat cattle have lifted, they’re getting stronger and stronger each week,” he said.

“The prospects of the job (market) ahead look very good and everyone’s on board.

“The yarding is still showing a bit wintry, certainly the weather will change that, as it warms up the cattle will get better too.”

Peter Ruaro Livestock and Property director Peter Ruaro from Wodonga said the Northern Victoria Livestock Exchange sale also experienced a significant jump in prime market prices.

“We’re on the edge of hopefully a good spring and the fat market has been going our way, there’s been a kick in that which underpins (the store market),” he said.