6 October 2010

3 minute read

Oceania

Rain has spurred optimism in northern Victoria where - for the first time in years - many dairy farmers can rely on more home-grown feed for this season and store some for future years, Australia's Weekly Times Now.

In other regions, dairy farmers want to boost numbers after what has been a tough 18 months during which many sold young cattle to export for much-needed cash-flow.

The tight supply and demand balance has started to flow into the sale rings for both commercial and registered cattle.

Elders dairy specialist Bernie Teasdale said he had a client "list as long as (his) arm looking for cows" and had regularly sold commercial cows for up to $2000.

Registered Holsteins sold to a top of $5100 at Koonwarra in Gippsland on Monday, with spring-calving cows and heifers averaging $2250.

Similarly, at Cobram last week, commercial cows sold to $2550 and averaged $1387.

This time last year, commercial cows were selling from $800 to $1100, while registered cows were avergaing from $1200 to $1500.

Mr Teasdale said lack of recent dairy sales made it hard to find a trend, but there was no doubt about a supply shortage.

"You could count on one hand the number of dairy sales of any note (recently)," Mr Teasdale said. "There's definitely a shortage, there's no doubt about that, quality dairy cattle are in demand."

Mr Teasdale said "it hasn't rained money" and not all dairy farmers were willing to stretch their budgets to the extreme.

"I still think there's a line that people won't cross. There has got to be a general improvement in the price of milk," he said.

For Dairy Livestock Services auctioneer Brian Leslie it's a case of dairy cattle prices returning to where they were before drought and low milk prices battered the industry.

He said the current market "wasn't bad" for buyers and sellers.

"If you sell two chopper cows and buy a good cow, it's not a bad transaction," Mr Leslie said.

He said demand for top-quality cows had been stable despite the tough years.

Mr Leslie said the "good, nice, average medium-framed cow" was behind the resurgence, which could be attributed to the season turnaround.

Western District-based Charles Stewart and Co agent Corey Baulch expected dairy cattle to get even harder to find when conditions started to dry off.

Mr Baulch said the source of demand had varied, coming from both the top end of the market and those chasing "average" cows.

He said while prices varied, quality "top-end" cattle were selling from about $1800 to $2000, and $1200-$1500 for average cows.

Meanwhile, young beef cattle prices continue to power along, defying the traditional spring dip, amid increased offerings.

The Eastern Young Cattle Indicator closed on Monday at 375.5c/kg - equal to the best rates seen more than four years ago, and 18 per cent higher than at the same time last year.

According to Meat and Livestock Australia, the EYCI traditionally peaks in late winter, as cattle supplies tighten, before easing as the weather gets warmer, usually hitting a seasonal low in December.

In the meantime, following record-high prices during August and September, lamb prices have come back after a 10 per cent increase in yardings last week.

The spring flush of lambs - later this year due to widespread rain last month - has pushed lamb prices down, with the Eastern States Trade Lamb Indicator closing Monday at 483c/kg.

However, while prices are back on recent rates, they still remain 9-26 per cent above this time last year.