2024 Beef Gross Margin Budgets Refect Industry Strength Amid Challenges

IAN ROGERS

The latest gross margin budgets from the NSW Department of Primary Industries and Regional Development (NSW DPIRD) reveal that returns from beef enterprises across New South Wales remain steady, with slight variations due to market conditions and rising costs.

Key highlights from the analysis include:

• Inland weaner production margins rose slightly from $39.22/Dry Sheep Equivalent (DSE) to $39.79/DSE.

• Coastal weaners on improved pasture saw an increase from $40.14/ DSE to $41.83/DSE.

• Feeder steers from self-replacing herds improved marginally from $51.69/DSE to $52.14/DSE.

• However, margins for growing out purchased weaner steers to feedlot weights fell signifcantly from $48.61/DSE to $41.41/DSE, refecting a decline of approximately $60 per steer.

Challenges and Opportunities

Todd Andrews, NSW DPIRD Beef Development Offcer, highlighted rising transport and animal health costs as key pressures on the sector. Despite these challenges, the robust prices for weaners and the potential to grow steers to heavier weights offer promising opportunities.

“Producers in regions with strong seasonal conditions, such as the Hunter, Central, and Northern NSW, might consider fnishing steers on pasture to achieve heavier carcase weights instead of sending them to feedlots. However, this strategy requires careful assessment of growth patterns and market prices,” said Mr. Andrews.

Branded Grassfed

Beef Markets on the Rise

The revival of branded grassfed beef markets, after a slow period in 2023, presents a proftable avenue for producers capable of fnishing cattle on grass. Crossbred weaner heifers, currently discounted compared to steers, offer signifcant potential for grassfed programs.

“Producers with robust record-keeping and stock management practices can capitalize on the premium prices offered by these markets,” Mr. Andrews noted.

Cost Relief and Export Demand

• Fertiliser prices have declined, easing cost pressures slightly, but rising transport costs remain a concern.

• Export demand for Australian beef, particularly from the USA, is projected to remain strong, with potential increases in 2025-26.

“Producers who focus on boosting productivity while managing costs and risks will be wellpositioned to thrive in the coming years,” Andrews concluded.

Further Information

For a detailed breakdown of the 2024 Beef Gross Margin Budgets, visit the NSW DPIRD website: NSW DPI Budgets.