AS beef prices continue to hit record highs, one North East producer warned the industry not to lose sight of production costs.
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Julian Carroll, Black Star Angus, told Thursday’s Border Beef Conference the beef price had made the industry highly profitable but smart farm practices were the key to remaining cost efficient.
More than 100 people attended the conference in Wodonga where Mr Carroll outlined his approach to stock management at his Round Hill, Mudgegonga, business.
Black Star Angus runs a closed herd producing feeder steers for the European grain fed market at 15 months.
“It is exciting times for beef producers but it is also good to remind people that while we have high prices in nominal terms it compares with the market from the the 1980s in real terms,” Mr Carroll said.
“The theme was profitability so there was a lot of talk about understanding the cost of production.
“In these good times it is important not to take your eye off production costs because they can easily increase and can hurt probability when the market turns.”
However, there are no signs of a downturn in the near future as NVLX Wodonga numbers show, the region continues to set the pace for quality beef production.
Steers sold for $3.48/kg and heifers attracted $3.55/kg in the past week.
“What’s happening in the market at the moment is unbelievable. There’s 30 categories of cattle making $1000 per head more than this time last year,” Landmark agent Mark Breen said.
“We bought stock in February and have just sold them for an 86c turnaround – that is unheard of.
“If they get a reasonable season in Queensland who knows where it could go.”
