Returns for cattle have been strong this year compared to last, and the values on cows have been no exception.
Analysing saleyard data on vetted-in-calf (VIC) beef cows has shown values in the North Island to be mostly higher than year-ago levels, especially dependent on which saleyard you are buying from.
Robust returns in the yards, a lifted market for finished prime cows, and varying levels of feed between regions have pulled significantly more VIC beef cows to auction this year.
In the South Island, different seasonal circumstances have made VIC beef cows better buying, although there were fewer through these yards.
Demand for cows has been strong through the association of good international demand for beef, especially imported 90CL (chemical lean) beef into the United States. Their limited availability of finished cows has led them to import immense quantities from South America, Australia and New Zealand.
The prolonged time expected for the US to rebuild its cow herd provides confidence that demand for beef should remain strong for some time.
There have been almost 800 more VIC beef cows through the yards this year in the North Island from March to June, and over 300 fewer in the South. Overall, an additional 400 VIC beef cows were sold through the yards nationally compared to 2023. Looking back on previous years, a five-year average throughput would include results from 2020, when saleyards were essentially shut down.
The throughput of VIC beef cows nationally in 2018 and 2019 was comfortably over 4000 head from March to June each year. In 2020 the number dropped drastically and has been recovering year by year ever since.
Stortford Lodge held the first of the in-calf cow fairs in March. Large consignments of well-bred Angus drew a big crowd of return buyers, who held the fair to a similar level of returns as the previous year.
Since then, more than 1200 beef cows have been sold at Stortford Lodge, around 160 more than in 2023, with the average return increasing 11c/kg to $2.48/kg.
Results for VIC beef cows at Feilding were very similar. Over 200 more were on offer this year compared to last, including the 445 sold at the in-calf cow fair in May. From March to June, almost 700 in-calf beef cows were sold at Feilding, with the average value increasing 11c/kg to $2.42/kg.
Historically, the Frankton saleyards have posted a more modest throughput at a lower price. Since 2008, this has looked like around 50-150 beef cows at an average return of around $2.00-$2.05/kg – understandably, due to dairy and dairy-beef cows being the more available composition in this region.
However, this year the number of VIC beef cows sold through these yards has increased from 87 to 273, while the average price lifted 47c/kg, from $2.04/kg to $2.51/kg, surpassing results from Stortford Lodge.
Between the South Island saleyards, Coalgate, and Temuka, only one held an in-calf cow fair at the height of the dry in autumn. The VIC cows on offer were mostly Angus and Shorthorn, making $2.10-$2.18/kg. This set the tone for an average return for the year of $2.16/kg, 12c/kg back on last year’s results through the same period.
Coalgate had significantly fewer in-calf beef cows through the yards without a fair this year but will most likely see more VIC beef cows through July.
