Sweating on freight effect

Last week Nutrien held their second sale and yarded 2,707 cattle with quality very good but not the weight that we usually see at this sale.

Cattle came from most parts of the state and most local buyers were from the North West, North East and Northern Midlands while there was some Victorian interest with about 400 getting a boat trip.

Heavy steer weaners (330+ kg) made $1,740 to $2,000 (av. 550c), medium (280-330 kg) $1,280 to $1,880 (560c), light $980 to $1,680 (575c) and very small $840 to $940/head. Medium heifer weaners made $1,240 to $1,480 (455c), light $860 to $1,260 (450c) and very small $680 to $940 (455c).

I think it would be fair to say that through the first four sales most vendors and buyers would be happy with the results with very few extremes one way or the other.

There have been some more patchy rains throughout the state with most of the state in a situation where a decent general rain would set up a pretty good autumn while obviously the lack of that rain will leave us in a precarious position.

Livestock prices right through Eastern Australia are holding up very well as we head though the autumn which is great news given the uncertainty of some of the overseas events.

Rising fuel prices are going make an impact on all farming operations and in the livestock trade the extra freight costs will be significant.

Long haulage rates have risen to around $10/km which is up from $7.50 in January/February which puts stock transport costs at all time highs.

In the case of freight costs from Tasmania to Victoria or further the extra will control how active interstate buyers are in our markets.

This will also apply to sheep and cattle coming into the state which will probably become relevant during the winter when local abattoirs try to source numbers from interstate.

Before this latest fuel increase we had already seen a couple of interstate meatworks pull out of Tasmanian markets with freight cost being given as the reason. Hopefully this overseas disruption will be rectified sooner than later.