Two sayings you’ll often hear are, “you’ll never have trouble selling Santas in Queensland” and “weight beats rate”. But how true are these claims, and can we back them up with historical data? To put these sayings to the test, we have reviewed historical AuctionsPlus commercial Santa Gertrudis sale results.
Firstly, reviewing 2024 sale results, Santa Gertrudis received the highest clearance rate of any breed, with 89% of the head offered securing a buyer. Surprisingly, buyer demand was strongest for NSW listed lots, with the value over reserve rate averaging $286/head, the highest of any breed in any state.
Figure 1: Offerings (RHS) and Clearance Rate (LHS) Since 2020
Looking at figure 1, which shows the clearance rate of Santa Gertrudis lots against all other breed cattle on the line graph (right hand side) and then total head offered on the column chart (Left hand side) at a quarterly level.
Over the entire period, Santa Gertrudis maintained an average clearance rate 5% higher than all other breeds, with a higher rate received in every quarter except Q4 2022. This consistently higher clearance rate demonstrates that Santa Gertrudis cattle not only have no difficulty selling in Queensland, but any listed location at all.
Figure 2: EYCI vs Santa Gertrudis AYCI
Optimising clearance levels on AuctionsPlus is influenced by several factors, one of the most significant being the set reserve price. Typically, the lower the reserve, the higher the likelihood of clearing. But is this true for Santa Gertrudis cattle? Are they being undervalued? Figure 2 suggests otherwise. It compares the Eastern Young Cattle Indicator (EYCI) with the AuctionsPlus Santa Gertrudis Young Cattle Indicator (AYCI), both calculated using unjoined heifers and steers between 200 and 400kg liveweight.
Since 2019, Santa Gertrudis pure and crossbred lots have consistently commanded a cents-per-kilo dressed weight premium over the EYCI. This, combined with a higher clearance rate, shows that Santa Gertrudis cattle hold a distinct advantage in the market when compared to the broader cattle market. Notably, pure Santa lots experienced substantial premiums during periods of high restocker activity, indicating strong demand from farmers looking to build their herds on the back of the Santa Gertrudis breed.
Figure 3: Historical prices received per weight category
Now that we have shown how strong the demand is for Santa Gertrudis listed cattle, from all locations, let’s review how weight and rate intersect. Does weight always beat rate and is this always the case? Figure 3 suggests a steady upward trend in pricing on a $/head basis the heavier the steers are that are sold.
A closer look however reveals that there are higher variations in price movements at certain weight levels that constitute a premium price. Specifically, the 200-220kg weight range in comparison to the 220-240kg weight range. The 200-220kg range has averaged $965/head, while the 220-240kg range averages $1,187/head, $222/head higher for a 20kg avg weight jump.
Another optimal weight level for selling on AuctionsPlus is the 360-380kg bracket, which returned a $261/head premium over the 340-360 weight range, and even returned a higher price than the 380-400kg bracket. Meaning that if you have steers in either the 200-220kg or 340-360kg range then based off this data you are better off getting an extra 20kg into the steer to receive a higher rate and price.
Where does weight not beat rate? The 380-400kg and 400-420kg both received the same or less $/head price average as the 360-380kg price. Based off this the extra weight in those two categories over 380kg they received a lower c/kg rate and was found to not be beneficial.
Figure 4: (LHS) All steers average liveweight per month historically. (RHS) all steers average sold prices per month historically.
Another important component of selling on AuctionsPlus is the timing of the sale. Looking at all steers of all weights, the highest monthly prices received are in the summer months of December, January, and February. This is consistent across prices received in 2024 and in 2023, as well as the 3-year, 5-year and 10-year averages.
Further to this, the heaviest cattle are typically sold in February, with average liveweight falling right through to winter, where there is a little uptick in weight experienced in June.
In conclusion, the optimal steer article to sell on AuctionsPlus at the optimal time based on historical data points to a 360-380kg steer being sold online in the summer months. Now we know there are many more factors that affect the pricing and timing however this is based purely off the historical data.
A look back on the year 2024. The blue ribbon best selling commercial Santa Gertrudis online were sold by Nugent Grazing at “Toolong” in Tambo QLD on January 25. The 54 Station Mated Cows and 54 Calves achieved a price of $3010, a stunning $1,210 over the reserve set of $1,800 which was also the highest value over reserve for any Santa lot for the year.
Jack Burgess from GDL who assessed the cows said the line consisted of 40 years of breeding and buying from top studs throughout Queensland. The lot consisted of a big family of cows and was part of a genuine dispersal with the Nugent family moving their operation into steers.
Mr Burgess was hoping they’d make in the vicinity of $2200-$2500 however the $1800 reserve was to let buyers know that they were genuine sellers. He believes that once a lot hits “On the Market” then buyers know they are playing for keeps.
This article first appeared in the latest edition of the Santa Journal.