Livestock producers welcome market turnaround

TASMANIAN livestock producers are enjoying a major improvement in market conditions this year. 

After battling through low prices and very difficult seasonal conditions last year, producers have seen a major turnaround.

Elders state livestock manager Gavin Coombe said the improvement in seasonal conditions had helped boost underlying confidence across the industry. 

“The livestock markets whether it be cattle or sheep or lambs are far better than this time last year, which it needed to be,” he said. 

“We’ve had a reasonably favourable spring in the state which has bought some good rains and good feed and plenty of hay and silage.” 

When it comes to prices, Mr Coombe said strong export demand was putting a solid floor in the market. 

“In general, the livestock job is very good and will continue to track along in a strong manner,” he said. 

“We’re all sitting a whole lot better than this time last year that’s for sure.” 

Mr Coombe said the improvement in seasonal conditions had come as a major relief, especially to sheep producers. 

“This time last year in the sheep job we were looking down the barrel of some producers having to euthanise sheep in the paddock,” he said. “That is vastly different this year.” 

Nutrien livestock agent Warren Johnston said last year producers faced difficult decisions when sheep prices plummeted as low as $2-$10 a head. 

“That was where it was at and the top end of those sheep were making $10, now they’re making $100 a head – more than that for those really heavy sheep,” he said. 

“Most sheep are in that $75-$100 range now and we had a market two weeks ago that averaged over $100 for our mutton, which was a lot better than what we saw this time last year.” 

Mr Johnston said overall there was a lot more positivity across the sheep market. 

“Restockers are out there looking for sheep and for quality ewes and store lambs at the moment,” he said. 

Mr Johnston said the improved confidence in the sheep market was being driven by better seasonal conditions and good prices for finished stock. 

“We’ve probably never seen it at this strength at this time of the year and certainly the lead up to Christmas was phenomenal,” he said. 

“They would have been record prices for that time of the year.” 

Mr Coombe said there had been solid mainland demand at recent on-property sheep sales. 

“Lambs have been tracking along quite nicely anywhere from $7.50 $8.50, depending where you go, and has been the shining light, but the cattle job is starting to catch up now too,” Mr Coombe said. 

Prices and demand for store cattle are also looking more buoyant. 

“The Powranna store market last week would have been the best market we’ve had in six or eight months,” Mr Johnston said. 

“We’re back at that magical $4.50-$5 a kilo for most cattle and that’s probably seasonally driven. People are getting a fair return for their prime cattle at the moment, so things are floating along ok.” 

With the state’s major weaner cattle sales due to start in about six weeks, producers are hoping industry confidence continues.

"This time last year we were looking at six weeks or so out from the start of the calf sales and thinking the state was in a pretty ordinary season feed wise and moisture wise and thinking where are these cattle going to go,” Mr Coombe said. 

Last autumn about 55 per cent of weaner cattle sold went out of the state but that is not expected to happen this year. 

“There is always a percent age of calves that go north but I think that will be a minimum this year,” Mr Coombe said.

Mr Johnston said another follow-up rain would also help.

“Hopefully we can get another follow up rain now and some autumn rain here and in Victoria and New South Wales,” he said.

“If we do, that will put us in a pretty good place for our weaner markets you would hope.”