Prices in most regions have come off slightly from last season’s highs but they’re still very good and higher calf weights in excellent growing conditions mean vendors can be getting the same cash returns, especially for steers.
However, in the deep south, very dry conditions continued well into February to reduce calf weights and some regular big buyers have not been in the market, with some having more stock of their own to finish, PGG Wrightson’s South Island livestock manager Shane Gerken said.
That pushed prices back by $80 to $100 a head across the region.
Elsewhere across the South Island and the beef cattle regions of the North Island it has been a good story with weights 15kg to 20kg higher than last year.
North Canterbury has been very strong with plenty of feed and sales results helped by continuing support from North Island buyers.
The South Island is about half way through the calf sale season but the North Island is near the end of a very favourable sales period for vendors, Wrightson’s North Island livestock manager Tom Mowat said.
“There’s been good demand for steers across the breeds.”
The heifer market has been mixed, after a couple of years of higher sale prices, but buyers not getting the follow-up margins they had hoped for.
Heifers have not achieved the same weight gains that allowed steers to keep producing good margins. This year the sale price gap was returning to more normal levels.
“The steers, you’d be getting $1000 for a 250kg animal and about $750 to $800 for a heifer.”
Typical prices have been $4/kg for a bigger steer calf and $4.50/kg for lighter animals.
Angus calves are attracting a premium, as they always do.
For the traditional beef cattle zone from Northland, around the East Cape and down the east coast to Masterton and across to Feilding the season has been favourable for feed and prices, Mowat said.
He has also noticed more demand this year from farmers for in-calf cows that might otherwise have been bought for processing.
“We’re also seeing farmers keeping a few more cows.
“It’s not big numbers but we could have more calves on the ground next year and that could stop the year-on-year decline.
“They might keep 110 when they used to keep 100. It al adds up over a few herds.”
The industry isn’t expecting much in the way of price gains from here on but Mowat hopes prices can be maintained around current levels.
“If the market stays where it is I think people will be pleased. It’s been very good overall.”
In the South Island, Gerken reports steer calf prices in the $4/kg to $4.50 range, with heifers at $3.80 to $4.20/kg depending on the breed.
Heifer prices have also varied from sale to sale.
“We can’t see any particular reason for that. It’s just happened that way. Some of the better-bred heifers are being bought for breeding, so that’s good.”
The South Island season started with very strong prices in Blenheim followed by very good results at Culverden and Cheviot in Canterbury before easing at subsequent sales.
“Prices might be off their highs but they’re still very good.”
