THE autumn auctions are shaping up as a buyer's market, writes BRIAN CLANCY
It's going to be tough selling bulls this autumn, according to Harry Lawson, principal of Australia's largest Angus bull farm, Lawsons Angus at Yea.
Clearly, with cow numbers down after several bad seasons, and a beef market struggling to recover from the global financial crisis, the forthcoming autumn auctions are shaping up as a buyer's market.
But despite the difficulties, most major studs are planning on larger catalogues.
Lawsons Angus is planning to auction 250 bulls at its March 10 sale at Glenburn, while Te Mania has catalogued 168 head for March 19 at Mortlake.
"We are in the business of producing affordable bulls upwards of $2000," Mr Lawson said.
"What matters to us are the clearances and satisfied clients rather than bull sale averages."
And while breeders of European-breed bulls will be championing the cause of the currently more-profitable domestic market, Angus breeders who have long coveted the premium long-fed Japanese market are not about to change.
"Breeding objectives are long term and they are something you can't just switch off and on because of some short-term trend," Mr Lawson said.
He said quality marbled beef produced off either grain or grass for the premium Japanese market was still the benchmark product across all markets.
One trend, acknowledged by Mr Lawson, which is gathering momentum is temperament.
"You can have all the right figures, but if the bull hasn't the right structure or temperament, you are failing your clients," Mr Lawson said.
He said the temperament of bulls was becoming increasingly critical, not only for the production of quality beef but more importantly, from a farm safety point of view and the need to reduce stress on both the cattle and the cattle handlers.
As for the beef outlook, Meat and Livestock Australia managing director David Palmer is hoping the worst has passed.
"Since the market mid-December cattle, prices have risen 30-40c/kg dressed weight," Mr Palmer said.
However, Mr Palmer readily conceded that much of this rise was off the back of rain in northern NSW and south Queensland, rather than any improvement in export returns.
Mr Palmer described Australia's $2.5 billion Japanese and $1.5 billion US markets as flat.
"The question of when they are going to recover is open to speculation," he said.
"The US has shifted significantly from table cuts to grinding beef in their fast-food sector.
"Their hamburger market has continued strongly but their higher price table cuts have taken a hit.
"Likewise, Japan is going through a bad patch. The recent $26 billion collapse of Japan Air Lines is no aberration."
Mr Palmer said beef had long been the meal of celebration.
"Unfortunately, that celebration has gone out of the diet. (But) this will change. For every downturn there is an upturn," he said.
