Market feedback

• Yearling steers
• Export steers
• Cows

Background

Evidence shows that meat processors and other livestock buyers pay according to the degree of muscularity of a beast and, therefore, the potential yield.

The perception that 'feedback' cannot be obtained from saleyards is incorrect. Information collected by MLA’s NLRS contains a considerable amount of detail in terms of price variations payable due to the variation and degree of muscle and fat and subsequent meat yield. This is particularly evident when the general market trend varies as premiums and discounts are paid accordingly based on the suitability of cattle to processor specifications.

Summary market data is available in various formats and from a range of sources however, the use of detailed data that is available from MLA’s NLRS is significantly under utilised. The key message that can be taken from analysis of the detailed market data is that meat processors and livestock buyers pay according to the degree of muscularity of a beast and therefore, the potential yield.

NSW Department of Primary Industries has undertaken extensive research in the area of muscling and its affect in the breeding and production system. A combination of these findings and market feedback enables producers to make decisions that are more informed in relation to breeding, operating and marketing.

The tables and comments provided on this page represent the major cattle indicator categories across the eastern states.  Variation is shown in the price of these market indicators for the different muscle and fat combinations. 

Autumn 2007 was another dry season following on from severe drought conditions during the preceding summer. There were some anticipations of a break in the season with some patchy rainfalls bringing improved pasture growth to selected areas. May experienced warmer than usual temperatures which was beneficial to winter crops and pastures. Substantial rain was recorded at the end of May and beginning of June which improved the seasonal outlook in the eastern states with WA remaining dry as winter set in.

Data in the following tables is for autumn 2007. These tables are updated seasonally and are average national prices from MLA’s NLRS reported saleyards. 

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Yearling steers

Table 1 illustrates the price variations based on muscle and fat scores within the medium weight (330-400kg) yearling steer category for cattle purchased for slaughter across the eastern states at saleyards reported by MLA’s NLRS.

Young cattle prices continued to improve throughout March from the improve trend of January and February. Prices reached a peak in mid-March when a tightening of numbers due to improved seasonal conditions which stayed at consistently high levels until early April. Prices dropped off in early April and recovered later in the month with more follow up rain and preceding warmer temperatures.    

Throughout the autumn months, the top quality end of the market received the greatest price improvements. Average yearling steer prices for B2, B3 and C3 lines were up to 18% higher than during summer. Comparatively, C and D muscles gained around 8% to 12% with a higher proportion of secondary pens entering the market due to the dry seasonal conditions. This was highlighted by the low proportion of 4 score yearling steers present in the market.

Table 1

Export steers

Table 2 illustrates the price variations within the heavy (500-600kg) grown steer category purchased for slaughter across the eastern states saleyards reported by MLA’s NLRS.

The optimum grades were the B3 and B4 heavy grown steers, albeit in limited supply, along with the C4 category. The C3 and C4s combined to total 74% of the grown steer yarding, a 20% lower share than during summer. There were more grown steers fitting the C2 and D muscled grades, a sign of the season which forced producers to offload steers onto the market before they were fully finished.

The C muscles remain ideally suited to market specifications again averaging 11 to 19¢/kg above their D muscle counterparts. The C4 category averaged 5¢ higher than during summer, with all categories making gains. The D muscled cattle were once again cheapest, with price deductions of around 7% to 10% compared to C muscled pens.

Table 2