Friday,
19 April 2024
Livestock demand high

HIGH demand for livestock products and ongoing industry staff shortages is causing a backlog for processors and suppliers.

Russell Mawson, branch manager at Nutrien Harcourts Euroa, said the industry had been subjected to many external elements.

"We have COVID–19 and paddocks full of grass," he said.

"The livestock industry in the last two weeks has experienced a massive shortage of staff due to COVID–19 with many abattoirs closing and many on skeleton staff.

"As a result the backlog is growing and the shortage of supply in supermarkets and butchers is leading to quotas on sale to customers, particularly Coles, even causing our local butchers to sadly have to close for a short period.

"We are now seeing some feedlots with up to 4–6 weeks backlog."

Mr Mawson said the demand for livestock had never been so strong and the frustration never so great.

"We see the lamb industry exceeding $8/kg and mutton around $6/kg consistently," he said.

"The old adage of a farmer being able to handle a flood, fire and a drought but not being able to stand a paddock of feed has never run more true."

Mr Mawson said with paddocks of grass from southern Victoria to the borders of Queensland and beyond, years of northern drought, a decline in the breeding herd paints a very positive future for our livestock industry.

"This was never more evident than in the commencement of the weaner sales in Victoria," he said.

"Euroa experienced an unprecedented angus feature sale in December, with the outstanding presentation of over 5000 quality cattle and prices being reached unseen before in the one week.

"The Euroa north east store sale centre's annual weaner sale held on January 12 had a yarding of about 2000 mixed sex bred weaners.

"The shortage of industry numbers was experienced at this week's sale against last year.

"Steers and heifers sold ranging from $5.80–9 kilo live weight.

"The demand experienced in the Euroa saleyard sees orders coming from Gippsland to Queensland back through to South Australia with cattle going to each of these destinations."

For local beef producer Phil Whitten, the period has been a combination of multiple factors.

"Following a massive sell–off of cattle across the eastern states of Australia during the 2018/19 drought, the last two years have seen above average rainfall over most of the cattle regions in QLD, NSW and Victoria," Mr Whitten said.

"This resulted in huge demand for cattle as breeders and finishers tried to rebuild their herds.

"Combined with this has been a global animal protein shortage, pushing up prices for finished beef."

Phil Whitten said "local cattle breeders have benefited from this price resurgence".

"Historically, weaner calves had been selling for $800–$1200 per head," he said.

"In 2020 weaner calves made up to $1600 per head, and in 2021 most calves over 300kg made from $1700 to $2500 per head.

"It's great to see local cattle producers with smiles on their faces again."

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