The National Processor Cow Indicator in Australia has lifted to its highest weekly price on record, reaching 390¢/kg liveweight (lwt) as of Wednesday 24 September, said Meat & Livestock Australia (MLA) in an analysis of the evolution of female cattle prices. For context, this time last year, the indicator was nearly one dollar cheaper. The last major peak occurred in October 2022, when the post-drought rebuilds supported record cattle prices across all indicators.
MLA says that unlike 2022 – when producer restocking pushed female cattle prices to records – the current high is processor-led. Two years ago, as the national herd recovered from drought, restockers paid premiums to secure breeding females. In contrast, processors are now selectively targeting cows to maintain throughput, supported by this year’s strong slaughter volumes.
This shift has been made possible by a combination of high cow availability, underpinned by favorable seasonal conditions across much of cattle country, and strong export demand. The United States (US), in particular, is progressing towards a herd rebuild. This has intensified demand for imported lean trim and helped underpin processor margins.
It is not happening the same with restocker and feeder heifer prices, which softened last week.
MLA considers that current conditions suggest processors will remain the primary driver of female markets in the short term, provided slaughter volumes stay elevated and US demand for lean beef continues.
