27 January 2016
On their Tangimoana finishing farm the McKelvies buy and sell on the same market to evade a cattle trading pitfall.
Tying up millions of dollars in trading cattle can be a risky business.
This is particularly so if there is a significant time lapse between selling and restocking. Serious capital can be eroded if cattle prices rise sharply during this period.
Traditionally, many sheep and beef farmers buy trading cattle in spring to control the “spring flush”, then finish these in the autumn-early winter.
The spring cattle market is always buoyant and the autumn beef schedule price often depressed, so farmers are usually on “a hiding to nothing” when it comes to making a profit from these animals.