NSW backgrounding orders continue to play a vital role in the result of Victorian store sales, as one major livestock buyer believes northern processors could turn to Victoria for a reliable supply of cattle.
Nutrien Ag Solutions southern Australia livestock operations manager Ron Rutledge was among the volume buyers at Bairnsdale's cattle market on Friday.
Mr Rutledge bought 352 cattle for two clients in northern NSW, including the first eight pens of a feature draft offered by Shaun and Maria Beasley, Emu Park, Lindenow South, and Mack and Robyn Stagg, Tambo Crossing.
"The cattle were intently bought to go onto some advanced crop for backgrounding," he said.
"The feature sales always attract a premium as we've seen at other sales throughout Victoria and Friday's sale had an exceptional line up of cattle that reflected the current conditions in Gippsland."
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He said high volumes of cattle in the north were starting to reduce the demand for cattle in the south, but specific programs and requirements such as European Union-accredited cattle, were still attracting interest from northern buyers.
"Traditionally, that demand does soften and so do the numbers as we head closer to winter," he said.
"However, we may well see the processor sector enter Victoria from NSW because of the low volume of slaughter cattle in NSW.
"That's going to be dependent on what happens with the crop cattle in northern NSW."
Mr Beasley, who sold 186 Angus steers at Bairnsdale, averaged $2214 a head across his draft of eight and nine-month-old weaners.
"I sold a heap of calves in January that were 40 kilograms heavier but made about 50 cents a kilogram less compared to the cattle we sold last week," he said.
"It's very welcome relief because we're still rebuilding after the drought in East Gippsland and trying to build our numbers up."
He said a wet summer had contributed to a rise in rank pasture with low nutritional value, but overall market conditions had improved the viability of his mixed-farming enterprise.
Meanwhile, the Staggs sold a consignment of 156 steers and 84 heifers, which averaged $2376 and $1881, respectively.
A portion of eight and 10-month-old calves were also bought to head north.
"Those steers were $500 up and $300 up on the heifers compared to the same sale last year," Mr Stagg said.
"It allows us to do more maintenance on the farm."
Mecardo managing director Robert Herrmann said several factors pointed to a positive outlook for beef farmers for the remainder of the year.
"The reduced flow of stock and stronger demand overseas is going to see our markets supported at saleyard and farmgate levels," Mr Herrmann said.
"However, we need to be aware of the unusual challenges that we're seeing, such as difficulties of processors operating at capacity and other logistical hurdles."
He said demand in the north would ease in the coming weeks ahead of the winter months.
"Then we look to the monsoon rains beginning in October to see whether the north goes into reduced stock numbers or whether they have a good season and then look to continue to build their herds by retaining females," he said.
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