What’s next for average bull prices?

Soaring cattle prices in the past two years has underpinned the record re-investment into the seedstock industry, as excellent seasonal conditions enable producers to introduce improved genetics into their slowly expanding herds.

AuctionsPlus continues to be Australia’s largest online selling platform for seedstock bulls, with numbers sold increasing annually for the past four years, reaching 15,155 head in 2021 – up 170% since 2018. 2021 saw 54% of bulls purchased online traveling to interstate buyers, whilst the total value of AuctionsPlus sales for the past calendar year hit $178 million.

Since 2018, the Angus breed has the highest number of bulls sold on AuctionsPlus, at 28,199 head (Figure 1).

Interestingly, Santa Gertrudis has seen the greatest increase in annual numbers, growing from only 203 head in 2018, to 1,270 in 2021 (Figure 2). Santa Gertrudis also took out the highest average online sale price in 2021, at $13,435/head (Figure 3).

Table 1 below shows how average bull prices closely follow the movements in the wider cattle market, as represented by the Eastern Young Cattle Indicator (EYCI). The year-on-year increases in the EYCI in 2020 and 2021 was matched by higher average bull prices across all breeds offered on AuctionsPlus.

While the young cattle market has eased slightly since its peak in January, the EYCI has averaged an astounding 1,116.85c/kg during the first five months of 2022 – 27% higher than the same period last year. Although the EYCI is expected to ease gradually into the second half of the year, the average across the year is expected to be higher than in 2021 – with average bull prices also anticipated to be higher.

Two years of determined restocking and the prospect of a third wet winter in south-eastern Australia is set to maintain the 2022 spring breeding season, with the highest number of females expected to be joined in over three years. Bulls to be sold this spring were all born post 2019, and as such, have only ever enjoyed exceptional growing conditions. Keen to “strike while the iron is hot”, many stud principals are expected to increase the number of yearling bulls available this year.

How many bulls can be sold in a single sale? The current AuctionsPlus record for biggest bull sale is held by an Angus sale in 2021 which offered and sold 232 bulls. To book in your spring bull sale, contact the AuctionsPlus sales team.