David Foote, David Harris and Jacqui Cannon: What’s next for Aussie cattle prices?

Some of the industry’s leading figures have detailed what might be next for the future of cattle prices as they continue to plummet.

Some of Australia’s major cattle industry figures have outlined why prices have fallen from a record breaking post-drought boom to an uncertain future, leaving producers to grapple with tightening margins.

Cattle Australia chair and Tandarra Partners director David Foote said farmers were feeling the pinch at the saleyard and at the feedlots.

“Now the local meat industry right now is in a very interesting state, very delicately poised,” Mr Foote told the annual Global Food Forum on Thursday.

“Cattle prices in the saleyards around Australia are down 40 per cent, which is having a huge impact on cattle producers who have got used to getting prices of $2000 for a head of cattle.

“And now prices for young cattle are down as low as $1100-$1200.

“I think the hurt will be in the feedlot sector at the moment.

Cattle Australia chair David Foote and wife Marian on their Queensland cattle property Tandarra, near Kilcoy. Picture: John Elliott

“People who put cattle away last year bought a weaner at $7/kg or an Angus steers at $8/kg, they’re only worth $4/kg today … so they’re getting caught in a short-term squeeze.”

Mr Foote also said Australian cattle prices were being affected by a rebuilt herd which now totalled an estimated 28 million, three million more than pre-drought.

“We’re actually coming back into equilibrium now with our processing plants, but there’s now a surge of cattle onto the market, so we’re obviously seeing that the processors can’t cope with the number of cattle wanting to be sold or processed,” Mr Foote said.

David Harris, managing director and CEO AACo and Jacqui Cannon, Chief Development Officer, Consolidated Pastoral Company at the Global Food Forum. Picture: Arsineh Houspian.

AACo managing director David Harris said bigger kills in US and South Korean markets could affect Australian cattle prices with an increase to short-term supply in the global market.

However, despite the uncertainty about how low cattle prices might fall, one of the largest privately-owned beef producers, Consolidated Pastoral Company, has committed to expand their Australian investment.

“We purchased two properties in the last eight months, but we also do have a focus on investment on the properties that we currently hold,” Consolidated Pastoral Company chief development officer Jacqui Cannon told the forum.

“In the last 12 months, we spent around $15 million on development of our properties, which includes adding hundreds of watering points and actually really focusing on developing what we’ve got.

“We have a budget of around another 15 million for further development on existing properties. We are looking, and we have bid on other properties too.”