Young cattle prices: Which state is getting the least for its cattle

The Eastern Young Cattle Indicator is different for each state with some producers receiving 100c/kg less for their stock.

Victorian cattle prices are dragging down a benchmark beef indicator as they feel the worst of the price falls.

Analysis of the figures which comprise the Eastern Young Cattle Indicator show the Victorian component of the seven-day rolling average as 613c/kg compared to Queensland at 712c/kg and NSW at 672c/kg.

Even Western Australia, with its limited processing facilities, is faring better than Victoria, with the Western Young Cattle Indicator closing on Monday at 757.11c/kg.

The low Victorian results are dragging back the overall benchmark EYCI, which after Monday’s sales settled at 680c/kg.

Mecardo senior market analyst Adrian Ladaniwskyj said the fall in Queensland yardings recently had lessened the state’s influence on the index.

“The EYCI has reached its lowest point since February 2020, but part of that can be traced back to the index becoming more southward-biased as yardings in the north fall back due to inclement weather,” Mr Ladaniwskyj said.

“To put the importance of this north-south divide into context, Roma store steers moved at 859c/kg carcass weight and Gunnedah, NSW, steers sold this week at 704c/kg.”

Meat and Livestock Australia senior market information analyst Ripley Atkinson said the Victorian component of the EYCI did typically track lower than both NSW and Queensland. “Over the past four years (on average), Victoria has only accounted for 5.85 per cent of total EYCI yardings,” Mr Atkinson said.

“This lower supply – due to Victorian producers marketing their young cattle via different avenues (like store sales) – does play a role in reduced supply (to the EYCI) and therefore lower demand at a price level for these cattle.

“Lower numbers mean a smaller buying pool, and you won’t have large buyer groups with small yardings, so this is also the difference between Queensland and Victorian price performance.”

Mr Atkinson said the EYCI provided a good trend of where young cattle prices and the broader market are tracking.

“It gives you a strong indication of the broader sentiment and performance from the quality, well conditioned animals,” he said.

Fellow MLA markets analyst Jenny Lim said the discounts for southern cattle were not limited to those included in the EYCI.

“Other southern-state indicators, such as the restocker yearling heifer, are trading at significant discounts to the north,” Ms Lim said.

The EYCI has lost 21c/kg in the past week, 69c/kg in the past month and is tracking 437c/kg lower than this time last year.