Slower cautious bidding at Beef Expo

Despite some spirited bidding, overall sales were down at Beef Expo, the Manawatu Standard writes. The global recession and drought both took their toll on farmer confidence at the national beef sales held last week at Feilding's Manfield Park as part of Beef Expo 2009. PGG W's national stud stock auctioneer and NZ genetics manager Bruce Orr said overall sales were probably down about $300,000, as there were fewer bulls auctioned and prices were back on last year. He said weaner (young cattle) sales had been buoyant, with most making more than the same-sized cattle in 2008, but the positives of better beef sales and higher lamb prices had not come through to the national bull beef sales. "We didn't have good sales. The weather was cold, there's a drought in some areas and the psychological impact of the recession. No one of them by themselves could be blamed, but put them all together and they ate out people's confidence," Mr Orr said. Top prices and averages were back on last year. "We did get some spirited bidding on bulls people liked, but nowhere near the highs of last year. Slower and harder bidding, that's what we saw at these sales," he said. "But here's the strange thing, the lead in commercially has been excellent lamb prices and the weaner fairs from Kaikohe to Invercargill, are probably $100 up on last year." Auctioneers are selling rising two-year-old bulls, which commercial farmers won't use for seven months, and that makes it hard Mr Orr said. "They're not halycon days out there on the farm, in spite of prices for sheep and cattle rising. We're seeing the impact of the world-wide economic recession. It is having a constraining and restraining effect on us now." The economic downturn, combined with this drought, and the large beef cow kill, means stud buyers and commercial farmers are spending less on bulls he said.