The Australian livestock market is a massive industry worth over $81 billion, and several factors, including global trading conditions, the weather, government regulations and consumer demand, influence it.

For this reason, prices can fluctuate at any given time, which is why it is essential, even for seasoned farmers, to understand the impact of the latest circumstances that drive its current pricing structure when they are looking to make a purchase.

Doing so, particularly for those navigating the complexities of farm sales for the first time, will enable them to make informed decisions that will build a more profitable and sustainable farming operation.

With that in mind, we’ve put together this post highlighting what you need to know about prices and market trends. Hopefully, you will find it helpful.

The Current State of the Livestock Market in Australia

Farm animal sales in Australia encompass a range of livestock, including cattle (which is the most popular), along with sheep, goats, pigs, and poultry. Their market price is based on various factors, like drought conditions, feed costs, and global export demand.

Over recent years, cattle prices have seen significant volatility, mainly due to changes in seasonal rainfall patterns and international trade agreements.

At the same time, online livestock trading platforms, such as cattle sales on AuctionsPlus, have revolutionised how these animals are bought and sold because traditionally, it has only been done through dealers, directly with farmers, or at physical auctions.

The rise of online platforms enables buyers and sellers to bid on livestock from across the country, providing them greater access to the market and more transparency within it.

What Factors Affect Farm Animal Prices?

Farm animal prices are regularly subject to change due to several factors that drive it. They include the following:

1. Seasonal Conditions and Climate Change

Australia’s climate plays a significant role in livestock pricing. For instance, periods of drought can lead to higher feed costs and reduced water availability, which force many farmers to destock. This can result in an increased supply that drives prices down.

Conversely, more favourable weather conditions can support pasture growth, leading to stronger demand and higher prices for breeding stock.

2. Feed and Input Costs

The rising costs of grain, hay, and supplementary feed directly impact livestock pricing because when they increase, production costs rise, thus leading to higher prices for finished animals.

Farmers who rely on supplementary feeding methods must factor in these costs when setting their selling prices.

3. Effect of International Demand on Domestic Prices

Australia is one of the world’s largest beef and sheep meat exporters, and they have key trading partnership agreements in place with China, the United States, and the Middle East. 

Subsequently, these export markets also play a crucial role in farm animal sales because any fluctuations resulting from changing trade agreements or economic conditions will influence domestic prices.

4. Overseas Disease Outbreaks

If there are significant outbreaks of disease, such as foot-and-mouth disease in other countries, which result in the enforcement of strict biosecurity measures, it can have a considerable effect on global supply chains.

As this can impact Australian livestock prices, farmers should be aware of regulatory changes and disease management practices that might affect their market supply.

Buying and Selling Livestock: What You Need to Know

Here are some things you should know to buy or sell farm animals or livestock in Australia effectively.

Buying Livestock

Just like with any purchase you make, when buying livestock, you will want to ensure it is in good condition.

Make sure you assess factors such as the genetics and health status of the animal, as well as the animal’s weight, condition, breeding potential and suitability for the market.

You should also determine where you are most comfortable buying the livestock from because while auctions, online sales, and direct farm-to-farm transactions each have their advantages, everyone has a preferred marketplace.

Should you decide to purchase through auctions, it’s essential to understand bidding strategies and pricing trends to secure the best deal. You might want to attend local livestock markets and engage with industry experts to gain valuable insights into prevailing market conditions.

Selling Livestock

For farmers looking to sell their livestock, it is vital to time their sales correctly, as this will help them maximise their returns.

Generally, selling during peak demand periods, such as before major holidays or at the start of the breeding season, can yield better prices. Investing in high-quality feed and ensuring they have good veterinary care can enhance an animal’s market value.

Your marketing strategies for your farm animals also play a crucial role in achieving the best price. So, try to have professional photos taken of them and include detailed descriptions in supporting literature that highlight their key selling points, such as breed pedigree, weight, and health status, to attract more buyers. 

If you decide to sell via an online platform, ensure your listings are accurate and current.