‘Never seen a year like it’: Record livestock prices defy fuel and freight pressures

PGG Wrightson Canterbury West Coast Livestock Manager Grant Nordstrom says dairy cow prices are near record levels. Photo / Rowena Duncum

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Despite rising costs and global uncertainty, livestock markets continue to hit record highs, says PGG Wrightson Canterbury West Coast Livestock Manager Grant Nordstrom.

Nordstrom told The Country’s Jamie Mackay that global demand for protein was continuing to underpin prices, even as the fuel crisis and transport costs bite.

“Prices have been easing back slightly, but I think that the worldwide demand for protein at the moment is having a big effect on bolstering those prices,” he said.

“I’ve been in this game a long, long time now, and I’ve never ever seen a year like it, especially when all of our commodities are up at once, even wool.”

In Canterbury, however, the picture is more mixed, with weather disruptions, fuel shortages and factory closures, such as Heinz Wattie’s, taking their toll.

Mackay asked whether this was creating pressure for land use change.

While Nordstrom couldn’t give an exact number, he estimated that between 20 and 30 dairy conversions were underway or planned in the region this season, with figures potentially reaching 50 in a wider area.

Sourcing livestock was also proving challenging, with dairy cow prices near record levels.

“As soon as there’s a decent herd or a decent line comes on the market, they’re snapped up pretty quick,” Nordstrom said.

He said good herds were snapped up quickly, often fetching $2500 to $3000 per cow, with top carryover cows reaching $3000.

“That just shows you the demand that’s out there.”

Even cull cows are returning exceptional money.

“Who’d have ever thought you’d get $7 a kilo for a cull cow?” Nordstrom said.

Cattle demand is also being reflected in calf sales, with Canterbury having hosted three of the nine scheduled sales so far.

Prices have exceeded expectations here, too, with top calves fetching close to $2300.

“Steer calves are averaging upwards of $7 to $7.50, and heifers $6.50 and upwards,” Nordstrom said.

“So, unbelievable prices when you look at last year, we thought we had a great season last year, but we’re $400 to $500 per calf ahead of last year.”

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Strong overseas markets, particularly in the United States, had helped boost confidence among finishers, although Nordstrom said high freight costs were tempering returns.

“I think it’s just the fact that it’s costing so much money to get it there that’s holding us back.”

The lamb schedule has eased slightly as processors face full plants, following a season of strong grass growth that encouraged farmers to hold lambs longer.

However, Nordstrom said prices above $9 a kilo were still historically strong.

“Supply and demand are playing their part, but everyone’s still making hay while the sun shines,” he said.

Strong global demand for protein continues to underpin a positive outlook for livestock markets, with prices holding at historically high levels despite ongoing cost pressures.

PGG Wrightson’s nationwide team works closely with farmers across the dairy, sheep and beef sectors, helping navigate tight supply and strong demand to make the most of current market conditions.

For more market insights, sale updates and industry commentary, visit the PGG Wrightson Livestock Hub and stay up to date with what’s happening across the livestock sector.