Rain holds key to our beef outlook
Graziers could flood market or hold off in hope of some fatter profits
CATTLE producers across the Cape York Peninsula and northern region are holding out for a successful wet season to set the stage for a productive year ahead.
While parts of the north have already received some significant rainfall in recent weeks, producers further out west are holding out for more rain to determine how supply and demand and prices should be expected to track.
Mareeba Saleyards board of directors chairman and owner/ manager of Morganbury Meats, Chris Greenwood, said it was a mixed feeling going into the new year. “I think 2018 will be another interesting year in the beef industry,” he said.
“Chillagoe and the Peninsula region are getting some good rain and I think some other places further west like Mt Garnet are due to get some.
“I think that (prices) will be weather contingent, if it doesn’t rain there will be an increase of supply on to the market, but if it does rain then I think there will be a lot of people holding on to their livestock to put some weight on them so they can get those better prices.
“Historical prices for 2017 were good and the prices turned back a little bit, but to come back 10 per cent from a 100 per cent price rise is pretty good I think.”
Mr Greenwood said the biggest suppliers to the Mareeba Saleyards mainly came in from the north west Chillagoe and Peninsula regions.
Gulf Cattleman’s Association vice president Greg Ryan said while it was still too early to predict what the industry was in for this year, but wet weather was a must.
“We need a wide spread average wet season to really get the cattle market going,” he said. “Supply and demand indicates the prices ... if it’s not a good wet season there will be a flood of cattle on the market.”
Mr Ryan said, while cattle numbers were a bit low across Australia at the moment, the industry was heavily reliant on live export. He said the majority of other cattle from the Cape and northern regions were often sent to Townsville or Charters Towers for slaughter.
“At the moment live export is probably about 2.90¢/kg, that’s pretty good money,” he said. “If we can get something around that again it’d be good.”
Buyers, cattle producers and agents will converge at the Mareeba Saleyards on February 13 for the first cattle auctions of the year.
Sales start at 9am.