Cattle prices climb despite sector’s woes

CATTLE prices have defied fears about China banning some of our beef exports, mostly increasing at this week’s Charters Towers saleyards to almost the highest levels in three years.

Lack of supply in Australia stemming from drought and the suspension of processing in the United States because of COVID-19 are believed to be behind the increases.

Geaney’s livestock agent Jim Geaney said there was concern in the industry about last week’s announcement of the ban by China but that prices defied the expectations.

“Everyone was talking doom and gloom because of China but that did not happen,” Mr Geaney said.

There was strong demand and price increases in most categories with prime steers and bullocks selling about 20c dearer to about $3.20/kg.

Mr Geaney said there was increased competition with more buyers entering the saleyards market from the south after prolonged drought in southern and western Queensland, NSW and Victoria had reduced supply.

Also, some northern producers were selling cattle after a patchy wet season.

“With the China ban, the demand from the US has taken up the slack,” Mr Geaney said.

Some of the largest abattoirs in the United States have been forced to cease operations after thousands of employees have tested positive for the virus.

Tim Mchugh, of Townsville firm Hogan and Mchugh, said he had never seen such strength in forward contracts to August for cattle in his 50 years in the game.

“It’s all about supply and demand. Supply at the moment in Australia is very low because of the drought and that’s our compensation,” he said.

Meat processor JBS Australia, which operates an export plant in Townsville, said it would be responding to the Chinese export bans at its Dinmore and Toowoomba plants “as a matter of urgency”.

China officials say customs officers have detected repeated violations of inspection and quarantine requirements.

Australian producers sold $2.7 billion of beef into China last year – a quarter of total export sales.

EVERYONE WAS TALKING DOOM AND GLOOM BECAUSE OF CHINA BUT THAT DID NOT HAPPEN.

JIM GEANEY