Feeder steers

[wbvs58]

I sold 5 feeder steers yesterday. It was a special steer and bullock show and sale. My steers won $500 for the best pen of heavy feeder steers and then won champion pen of all the feeder steers and I pocketed another $1000, I thought, how long has this been going on, I could get used to that. Then to top it off my steers averaged $2726.10 each, weighed av of 466kg each and brought $5.85/kg. so a gross of $13,630.50 plus the prize money, a good days work.
I know some will convert that to US dollars but to me it makes little difference as I have the money and am spending it locally. I am not buying new machinery, just providing for my basic needs. The thread the other day about how tough things were in the US farming and how many small farmers were depressed, our situation is just the opposite. In most districts things couldn't be better, the drought has broken in most areas, livestock prices are very good and grain prices are reasonable and there is prospects of a good harvest in spring and land prices are booming. We would be naieve to think that this is how it will be long term but we can certainly enjoy while it lasts.
Our cattle herd got sold off very heavily over the last few years due to a severe drought in a large proportion of Australia and now people have grass and need to restock. Those who hung onto their cow herd sold their weaners last autumn for good money and are cashed up for buying bulls. The bull sales have been going crazy, our leading Angus seedstock breeder had their sale this week selling over 100 bulls for an average just over $47000. Our exchange rate is keeping our product competitive in international markets helping the feedlots and processors to maintain a small margin.
Overall things are pretty good here for now.

Ken

 

[BFE]

That is fantastic! I hope your success continues.

 

[Warren Allison]

I sold 5 feeder steers yesterday. It was a special steer and bullock show and sale. My steers won $500 for the best pen of heavy feeder steers and then won champion pen of all the feeder steers and I pocketed another $1000, I thought, how long has this been going on, I could get used to that. Then to top it off my steers averaged $2726.10 each, weighed av of 466kg each and brought $5.85/kg. so a gross of $13,630.50 plus the prize money, a good days work.
I know some will convert that to US dollars but to me it makes little difference as I have the money and am spending it locally. I am not buying new machinery, just providing for my basic needs. The thread the other day about how tough things were in the US farming and how many small farmers were depressed, our situation is just the opposite. In most districts things couldn't be better, the drought has broken in most areas, livestock prices are very good and grain prices are reasonable and there is prospects of a good harvest in spring and land prices are booming. We would be naieve to think that this is how it will be long term but we can certainly enjoy while it lasts.
Our cattle herd got sold off very heavily over the last few years due to a severe drought in a large proportion of Australia and now people have grass and need to restock. Those who hung onto their cow herd sold their weaners last autumn for good money and are cashed up for buying bulls. The bull sales have been going crazy, our leading Angus seedstock breeder had their sale this week selling over 100 bulls for an average just over $47000. Our exchange rate is keeping our product competitive in international markets helping the feedlots and processors to maintain a small margin.
Overall things are pretty good here for now.

Ken

Hi, Ken. Sounds like things are going pretty well now down under. But one question: How do booming land prices help cattle ranchers? I mean, if they aren't planning on selling out or leasing to another rancher?

 

[J+ Cattle]

wbvs58,
I made the conversion from kg to lbs. and AUD to USD and I came up with 5 steers @ 1025.2 lbs sold at $1.994 USD/lb. ($2044.58 each)
1 can say that if we were getting those prices we would all be driving new trucks and buying more land driving up the real estate prices.
I agree things are pretty good there for now.

J+ Cattle

 

[Stocker Steve]

Glad things are going well for you wbv. Some are projecting good cattle profits in the US next year .

Where is this expensive beef being consumed? I thought a lot of your ag and mineral products go to China?

 

[simme]

Where is this expensive beef being consumed? I thought a lot of your ag and mineral products go to China?

Probably not the case for the steers mentioned here, but I think lots of the cattle produced in northern Australia go to Indonesia. Near the equator (hot and humid) with Brahma cattle that are live exported for halal slaughter in Indonesia. My son spent 6 months in the Outback on a large cattle operation (called a station there). Cattle operations and life in general in the outback are very different than here. I might start a post with some of his work there.

 

[MurraysMutts]

Probably not the case for the steers mentioned here, but I think lots of the cattle produced in northern Australia go to Indonesia. Near the equator (hot and humid) with Brahma cattle that are live exported for halal slaughter in Indonesia. My son spent 6 months in the Outback on a large cattle operation (called a station there). Cattle operations and life in general in the outback are very different than here. I might start a post with some of his work there.

I think we would all like to hear about that.

@wbvs58 sounds like ya done good!
I dont ever raise any to that size. Biggest steer I've sold was about 650lbs.
Wish I had more acres. I'd consider doing more but I really enjoy cow/calf.

 

[wbvs58]

Hi, Ken. Sounds like things are going pretty well now down under. But one question: How do booming land prices help cattle ranchers? I mean, if they aren't planning on selling out or leasing to another rancher?

It is making it hard to buy in for sure but a lot of family companies are expanding and buying up additional properties to give them scale, the term "vertically integrated" is used a lot where they have breeder blocks in the north with a lot of ear cattle but are using a lot of Angus/ Ultrablack genetics now and then they background them on their better country further south and will then put them into their feedlot on another block where they grow grain as well. Some expansion helps with their succession planning and keeps family members in the game. There is also some overseas investment but family businesses are competing well.

Simme, yes there are still a lot of Brahmin type cattle in the live export trade to Asia to feedlots there and then to supply the wet markets there. Our strict animal welfare protocols for transport by sea and then treatment in feedlots there and slaughter facilities eliminates any abuse of animals and animal welfare organisations are constantly watching to catch us out, any slip up and the trade will be stopped. At present the live trade is not as big as it used to be as our cattle are bringing a bit too much for them.
I would love to see/hear your sons take of life in Central Australia.

Steve, we are in the "sin bin" with China but the volume I think is us down to about the 4th biggest into that country. Our lean beef is still going to the US and then Japan and Korea are big markets for our prime feedlot beef and then EU and I think GB is opening up for us. Basically every market that the US exports to. Our exchange rate is propping up our high domestic prices for our cattle.

I am not trying to gloat here about our roller coaster ride at present, more like giving you my friends in the US a report of how things are here at present, as we all know that things can go belly up pretty fast but there is a fair degree of optimism that farming may be entering a new era and that when these heady prices do come down that they stay at a more reasonable level than before. I am sure and sincerely hope that better times are just around the corner for you guys in the US.
I was reading the other day that the consumer is not paying full price for farm produce, big super market chains put pressure on producers to supply at a price and in turn this puts pressure on producers to get more from their land with heavier grazing and overcropping. The consumer also wants the farmer to practice more sustainable farming practices and store carbon in the soil so they can still breath in their congested cities. They want their cake and to eat it as well, hopefully things may change.

Ken

 

[branxchar&charx]

Every time i hear Australian cattle, i always think of this video.lol sure its been posted before

 

[wbvs58]

Every time i hear Australian cattle, i always think of this video.lol sure its been posted before

Showjumper potential there.

Ken

 

[faster horses]

How'd you like to have him in a pasture next to you??? Yikes!

 

[coachg]

Congrats ! Glad to hear when a cattleman makes money . Don't care if it's US , Canadian. , or Chinese

 

[GoWyo]

How'd you like to have him in a pasture next to you??? Yikes!

He will be in your pasture and as soon on as you show up with a horse he will be over the fence and won't touch a wire. And all your cows will be bred to him too.

 

[MurraysMutts]

He just cant wait to get on that trailer!

Not only once, but TWICE!

 

[Jeanne - Simme Valley]

Congrats on your prices - but mostly congrats on the awards. Great job!!

 

[farmerjan]

That is great on your steers. The awards are a little tribute to doing a good job feeding them.... Congrats....

Prices here are not that bad... steers... 5-6 wts yesterday were bringing in the 1.55-1.70's range... took 8 in for a friend and 5 went together... weighed around 640 avg and brought 1.60, and 2 brought 1.61 they were 560lbs. The single had spots in both eyes and looked a little rough, weighed 570 and only brought 1.25... But the others did decent. These guys were just on grass and it has been dry so I think they could have weighed a little more if they had had more to eat. Saw some smaller ones, in the 4 wts bring up to 1.80, but most were in the 1.60-1.75 range.