Dry conditions in northern Australia have forced an oversupply of cattle ready for slaughter onto the market, causing backlogs in the southern half of the country and leading to a fierce drop in store market prices.
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Vendors at Pakenham's fortnightly store sale felt the pinch on Thursday when beef prices dropped by another 15-25 cents a kilogram, despite a reasonably decent-quality yarding, agents said.
About 1080 cattle were yarded at the Victorian Livestock Exchange during the first winter market.
Alex Scott & Staff Pakenham livestock manager David Setches said the market was "certainly" cheaper compared to the last May store sale.
"Feedlotters were still active, but operated at limited capacity with rates 10-15c/kg back compared to fortnight," he said.
"There were some nice lines of feeder cattle and some limited pens of calves weighing from 250-350kg, however, we really lacked the buyers to purchase those better-bred cattle."
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Mr Setches said delays in cattle processing in abattoirs across eastern Australia were influencing prices.
"Graziers are a bit hamstrung because farmers are waiting to be paid for those cattle or they're waiting to make room for new supplies of young stock," he said.
"Delays vary in abattoirs at the moment, but on average it's taking anywhere from four-to-six weeks for a beast to be slaughtered."
The oversupply of cattle is particularly uncommon for this time of year.
"Normally we're getting phone calls from processors who are screaming for cattle and that usually pushes the prices in saleyards up at this time of year," he said.
"People had so much rain and feed last year and as a result, they have held onto more cattle than they normally would, and because it's getting so dry in the north, people are putting those cattle into the yards."
Heifers took the biggest hit at Pakenham, down 25c/kg compared to a fortnight ago with females weighing 290-370kg making on average 290-320c/kg.
M & J Tanner, Tyers, sold 15 Angus steers, 610kg, for $2040 a head or 334c/kg.
Ben Vale Beef, Neerim North, dispersed its herd and sold 17 Angus steers, 519kg, for $1670 or 321c/kg, and 14 steers, 487kg, for $1600 or 328c/kg.
G & M Dinsdale, Yarragon South, sold 12 Angus steers, eight months, 292kg, for $1160 or 397c/kg and 12 Angus steers, 276kg, for $1100 or 398c/kg.
Westlyn Pastoral, Sunbury, sold 12 Angus steers, 448kg, for $1500 or 334c/kg and 15 steers, 272kg, for $1070 or 393c/kg.
The same vendor also sold 15 steers, 252kg, for $990 or 392c/kg and 16 heifers, 260kg, for $750 or 288c/kg.
Elders auctioneer Michael Robertson, Pakenham, said the sale was tough going and "lacked life".
"There was a nice selection of feeder-weight cattle and lighter weaners and sadly there was just not a lot of drive for those cattle," he said.
"We saw a lot of feeder-weight cattle, 460-500kg, which made 320-350c/kg, while weaner steers weighing 280-350kg made 350-380c/kg."
Westlyn Pastoral, Sunbury, sold 12 Angus steers, 448kg, for $1500 and 15 steers, 272kg, for $1070.
The same vendor also sold 15 steers, 252kg, for $990 and 16 heifers, 260kg, for $750.
Bryce Eishold
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
