FMD blamed for loss of confidence in livestock markets

Record livestock prices are being relegated to memory as rates slip week after week, partially driven down by fear of FMD.

Fear of a foot and mouth outbreak in Australia is fuelling a lack of confidence in livestock markets as producers grapple with the risk.

Prime, store and online livestock markets are all taking a hit, with a number of factors driving down rates including the threat of FMD.

The herd and flock rebuild is contributing to bigger offerings for processors to buy from which in turn is impacting on prime values, and the tough, cold winter with little pasture growth has taken the sting out of restocker interest.

But it appears talk of the FMD risk is being partially blamed for the unwillingness of some store buyers to step into the market.

One agent told The Weekly Times he knew of a producer who sold his older breeding females two years earlier than normal to try to lessen his exposure if there were a FMD outbreak.

And FMD fear was playing on the minds of those who attended last week’s Ballarat store cattle sale where prices were up to $300 cheaper than a month ago.

TB White and Co livestock manager Xavier Bourke said there was a big dip in prices across the board last week at the sale of 3100 cattle.

“Certainly there is not a lot of confidence around at the moment and it was probably the worst week to have a store sale given all the talk about FMD,” Mr Bourke said.

But others saw an opportunity with veteran agent Mick Hornsby from Nutrien Delaney at Pakenham buying 70 steers at an average of $2209 from last week’s Ballarat sale.

“Yes there is talk about FMD but if it comes, it comes - we can jump up and down and yell and scream but we also need to keep operating,” Mr Hornsby said.

“I thought there were some good buys here at Ballarat.”

But not all are feeling this way, shown in the results of last week’s weaner and yearling sale on AuctionsPlus, where clearances were low.

Of the 211 lots offered on the platform, many failed to meet reserve and some lots received no bids at all. Of the offering, 103 or almost half were passed in or did not receive one bid.