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| A pen of weaners sired by Trio Angus bulls being sold in Tamworth |
2011 is looking to be a good year for cattle producers with prices continuing to surge across Australia. The decline in global beef stocks along with increased global demand is helping keep cattle prices at record highs despite the soaring aussie dollar. Good seasonal conditions are also creating competition in the market from restockers who are trying to make use of their abundance of feed.
However these high prices do create a tough balancing act for cattle producers as they have to choose whether to retain stock & maintain their herd numbers or sell & capitalise on the strong market. This is the same dilemma that has faced US beef producers & their national herd size continues to decline as a result.
The grain feeding sector is not finding 2011 as encouraging with high feeder cattle prices, along with high grain prices & the slowed Japanese market, putting pressure on profit margins.