Predicted supply pressures due to calf-rearing cutbacks show up in the saleyards.
Bulls big and small are a hot commodity at present and, without going down too many rabbit holes, the main instigators of the stronger bull market are a lack of supply and a strong international manufacturing bull market pushing schedules up.
Weaner Friesian bulls have enjoyed a good price run this season and, leading into the beef weaner fair/calf sale season, expectations for these fairs are also optimistic.
Friesian bull prices from November to January have favoured the seller, but buyers can see a good margin and have stretched budgets to secure calves.
It is common for prices to ease towards the end of the sale season, but as Hawke’s Bay turned from drought conditions to good growth, more stock trucks are heading to the region loaded with weaner bulls.
R2 Friesian bulls are almost as rare as hen’s teeth. Back in 2022, AgriHQ analysts voiced concerns on the future supply of this age group, given that the number of calves being reared back then had dropped. The market is now seeing the result of that drop in calves reared.
The turn of the weather on the eastern side of the country has also kept R2 Friesian bulls off the market, as farmers aim for finishing rather than selling store.
A whip around the saleyards shows that the ex-service bull market through January has been on fire, fuelled by strong demand from processors as they look to fill gaps in chains, and also work to strong overseas demand.
The United States beef market is at a record high too, so that means processors can afford to pay more if they must. And added to that is the slow supply of cull dairy cows coming out of the woodwork, as farmers hold them over to take advantage of the high milk pay-out.
At present, the manufacturing bull schedule ranges from $7.10/kg to $7.50/kgCW in the North Island and $6.90/kg to $7.20/kg in the South Island, with both islands up around $1.70/kg on last year.
Premiums can be made for decent sized lines and regular supply, so the yards have proved to be a popular place to source more supply as the ex-service bulls exit the dairy herds.
The big boys in the yards have been a talking point, as per kilogram prices over $4/kg have been frequent on both islands, which is a level previously unheard of.
At the most recent Feilding prime cattle sale traditional bulls, 580kg and above, were hitting $4.20-$4.28/kg. At Temuka, similar bulls traded at $3.90-$4.07/kg, and all heavy bulls are selling well relative to their breed.
This article was written by AgriHQ analyst Suz Bremner. Subscribe to AgriHQ Industry reports here, to view the full report.
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