
The Narrabri cattle market has made astonishing improvements since the same time last year and local producers are cashing in on the price surge.
In most categories, cattle are selling for almost one dollar per kilogram more than they were in May last year.
The best of the vealer steers weighing between 200 and 280 kilograms were selling for 245 cents per kilo this week, a 115 cent increase.
Yearling heifers weighing up to 330 kilograms sold to a top of 242 cents per kilogram, an increase of 100 cents since last year.
Producers are now being paid approximately $421 more per animal on average, a 70% increase in price.
Scott Hamilton from Hamilton Mortimer agency says there are a number of factors at play.
“The market was very strong this week due to demand outstripping supply and the presence of good quality cattle,” he said.
Former Narrabri Livestock Agent Ron Ison said the dry conditions had forced producers to destock which was dramatically shortening supply.
“The cattle that are left are now doing pretty well because there are such restricted numbers and less pressure on feed supplies,” he said.
“Bulls made 265 cents per kilogram today which is unheard of.”
Bulls weighing over 600 kilograms sold for as much as 266 cents per kilogram at the Narrabri saleyards this week, up 137 cents on last year.
The Narrabri cattle market is part of a nation wide trend in record breaking prices.
The Eastern Young Cattle Indicator (EYCI) hit the highest point on record this week, finishing Tuesday’s markets at 476 cents a kilogram carcase weight, which is an increase of 136 cents on the same time last year. The record for the number of consecutive sale days with the EYCI staying above 400 cents (38 days) has also been broken. The EYCI has now been above 400c/kg for 43 consecutive days.
According to a NAB Agribusiness report, prices are expected to stay strong for the remainder of the year.
Khan Horne, General Manager NAB Agribusiness, said beef prices are staying high despite continuing strong production levels over 2014-15.
“Overall, the fundamentals for the beef industry are very solid, supported by growing demand from our major export markets and the falling Australia dollar,” he said.
“Price wise it has been a good year for many beef producers.”
A key driver for the surge in the EYCI has been the US market, with the falling currency supporting prices in AUD terms. Despite higher beef, sheep and lamb prices, research by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) suggests overall farm cash incomes on the North West Slopes and Plains and in Far Western New South Wales are on the decline.
This is a result of continued dry
conditions which have further reduced crop production.
Incomes for beef and sheep farms are also projected to decrease as the number of sheep, lambs and beef cattle dimishes.
The proportion of farms recording negative farm cash incomes is projected to exceed 30 per cent in the north west of the state this year.
On average, farm cash income for broadacre farms in New South Wales averaged $106 000 a farm last financial year, still around 44 per cent above the 10-year average.