Victorian cattle breeders are quitting young cattle as concerns mount over feed

Prices for young store cattle are struggling, as producers from Wodonga to Leongatha and Mortlake sell down numbers.

Weaner cattle are being sold off early in big numbers as dry conditions across southern Australia dampen confidence and returns for store stock.

This week Ballarat will yard about 5000 cattle, 1000 more than usual in November, as dry conditions force early selling of weaners that would normally be marketed in February.

And even in the high rainfall hills of Gippsland, producers would “prefer not to have any” rather than to risk buying cattle they may struggle to feed.

This mood played out at store sales last week, including Leongatha’s yarding of 3500, where prices fell up to $120-$150 in a week on secondary lines.

On the other side of the state, falls of around 40c/kg were recorded on heifers at Mortlake, and at Wodonga, Nutrien’s Luke Deimel said there was a “mood of concern that we are heading into a four months of tough going and a lot of people don’t have abundant feed”.

TB White and Sons agent Xavier Bourke from Ballarat said “the cattle have got to go, normally these weaners would be held for our premium sales in February but they are coming in”.

“We’re hoping demand comes from south Gippsland and feedlots, and along the coast, but also NSW as they have feed.

“A lot of people (here) just have no hay left and not a lot of hay is being cut so people are selling six to 12 weeks early.”

Phelan & Henderson & Co agent Simon Henderson, Leongatha, said “people in this part of the world are not used to the season turning dry in early November, usually this is where we are in the first or second week of February”.

“Confidence is down, it is a week-to-week proposal and everyone is very cautious, they are looking at whether they can cut silage now instead of buying cattle.”

There was also reduced competition from feedlotters.

“In August you would have had three or four feedlots after Angus steers, but now we are seeing one export feedlot buying,” Mr Henderson said.

And, there was no significant gap in cents-a-kilogram prices between heavy and light cattle.

National Livestock Reporting Service reporter Brendan Fletcher said the store market was showing “weakness with secondary cattle and light weight calves selling to softer demand”.

Heavy Angus steers sold firm while lighter weight calves sold up to $50 easier and secondary crossbreds lost up to $150; and heifers fell $50-$120.

Mr Henderson said cows and calves were now tough to sell, “barely making split values at $1100-$1800”.

Mortlake’s 3289 cattle sale saw a patchy quality yarding draw a smaller field of buyers, producing subdued demand. Grown and weaner Angus steers were 20-45c/kg cheaper, while heifers fell 40c/kg and more.

Back at Wodonga, Mr Deimel said while traders selling bullocks at around $2400 were happy to step back into a trade at $1200-$1400 steers, elsewhere breeders were lightening off cows. Particularly older cows were being sold with young calves split off.

“People don’t have the confidence to take on older cows with calves at the moment,” he said.

The Eastern Young Cattle Indicator has fallen 18c/kg in a week, to 614c/kg carcass weight.