Confidence in beef market on rise

Sheep and beef farmer Levin Coulter, of Circle Hill, and his fox terrier Tilly at The Gums annual...
Sheep and beef farmer Levin Coulter, of Circle Hill, and his fox terrier Tilly at The Gums annual in-calf heifer and bull sale near Milton. PHOTOS: SHAWN MCAVINUE
What a difference a year makes in the beef game.

Sheep and beef farmers Brad and Rochelle Williams and their daughters Samantha, 8, and Madison, 7, have been selling in-calf beef heifers on their 460ha farm The Gums in Circle Hill near Milton for the past three years.

The auction date was brought forward about a month last year and billed as a drought sale, due to a lack of grass and the family wanting to offload the heifers to keep their condition.

The top price paid last year was for a pen of 15 rising 3-year-old heifers for $1550 each.

Fast forward to the third annual sale last week and 15 rising 3-year-old heifers sold for $2200 each.

Confidence in the beef market had risen because farmers were being paid more by meat processors and there was more grass available this autumn.

"The schedule is pretty high and they are talking it up, too," Mr Williams said.

Demand for beef cattle was strong, which was a change to last season.

"It has been a massive change and it is nice to have a product people want," he said.

PGG Wrightson agent Warwick Howie sells beef cattle at The Gums.
PGG Wrightson agent Warwick Howie sells beef cattle at The Gums.
The same sentiment applied to sheep. "They want store lambs, fat lambs, ewes, store cattle, 100kg calves, they want everything. It has been good."

Favourable farming conditions in South Canterbury had increased demand from the region, Mr Williams said.

Autumn farming conditions on The Gums had been the best in the six years the family had been on the property and winter crops, a mix of fodder beet, kale and swedes, were looking good, he said.

The conditions had allowed them to increase the number of cattle.

A noticeable change since the sale last year was the growth of the pine trees on land surrounding The Gums.

"There is heaps more pigs, it is a breeding ground," Mr Williams said.

Stock manager Levin Coulter, of a neighbouring 1150ha sheep and beef property, shot four wild pigs he caught making a mess of a paddock last week.

Farming was much more positive now than it was last year. He recalled buying in-calf heifers at The Gums for $1600 last year.

When the beef prices were high, so was the risk to buyers of young cattle.

Sheep and beef farmer Brad Williams and a pen of his Angus and Hereford in-calf heifers at his...
Sheep and beef farmer Brad Williams and a pen of his Angus and Hereford in-calf heifers at his third annual on-farm sale at The Gums in Circle Hill last week.
The beef price needed to remain high to make a margin, he said.

"It is a gamble but it has been a tremendous season and farmers needed it — man, we needed it. It keeps everyone happy, the bank, the contractor and the shearer. It is awesome," he said.

At the sale he bought a rising 5-year-old Angus bull for $3000 to use on a block his employers lease in Cardrona Valley.

PGG Wrightson agent Warwick Howie said buyers were acclimatising to the lift in beef prices.

"It is early in the season so people are sitting back and seeing what they are worth."

Some calf prices at Palmerston 1st calf sale on March 28 were up $300 to $400 on last season so buyers needed to get their heads around how much they were willing to invest, Mr Howie said.

"Prices are at a whole new level."

Results on online auction platform Bidr shows there was a full clearance of the 92 lots on offer in Palmerston.

The top price paid was for a pen of five Angus steers $1640 each or $5.02 per kg.

A rising 5-year-old Angus bull sold for $3000 at The Gums sheep and beef farm in Clutha last week.
A rising 5-year-old Angus bull sold for $3000 at The Gums sheep and beef farm in Clutha last week.
A pen of 10 Angus steers fetched the most paid per kg of $5.09, or $1005 each.

At the Gore calf sale at Charlton Saleyards on April 2, the top price paid was $1420 each for four Angus cross steers, or $4.21/kg.

The most paid per kg at the sale was $5.22/kg for 10 Angus steers, or $935 each.

Prices fetched at the Glen Islay on-farm calf sale near Gore on March 27 included a pen of 30 Angus steers going for $1290 each.

Castlerock 1st calf sale top prices per kg in Northern Southland on April 4 included 16 Angus steers selling for $810 each, or $5.84/kg and eight Charolais cross steers selling for $1070 each, or $5.60/kg.

Prices at the Owaka calf sale at Balclutha Saleyards included 24 Simmental steers selling for $1470 each or $5/kg.

There was a full clearance of the 40 lots on offer at the Maniototo early muster lamb sale at Waipiata Saleyards on April 3.

The top price was shared by the first two lots, a total of more than 300 blackface mixed-sex lambs, selling for $160 each.

shawn.mcavinue@alliedpress.co.nz

 

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