Increased rainfall across New South Wales has pushed cattle prices to their highest level in three years. Farmers are eager to replenish herds, yet many are facing escalating costs and flood-related destruction. August recorded its heaviest rainfall, repairing drought-affected areas but triggering fierce competition for livestock, bringing both opportunity and financial strain.
In drought-hit parts of northern NSW and areas near Sydney, consistent rain has revitalised pastures and encouraged graziers to rebuild stock. Although this has brought renewed confidence to the sector, the same weather has caused serious issues for properties, damaging roads and bridges and pushing up production costs at a time when profit margins are already tight.
One farm in Port Stephens has reported more than $300,000 in combined feed and repair costs due to storm damage and the need for additional fodder. In the north, graziers looking after thousands of head are being squeezed by fixed-price retail contracts that do not reflect the rapid cattle price increase. Prices for a 330kg beast have jumped from about $1100 to almost $1500 in just two months. Although sale prices have soared, thin margins remain due to the high cost of grain feed and significant upfront spending.
Much of the price surge comes from a restocking wave, a typical trend when rain returns after drought. Farmers, feedlots and meat processors are all competing for a limited supply of young cattle, creating strong demand across the industry. The Eastern Young Cattle Indicator has risen from $6 to more than $9 per kilo within a year, intensifying the competition.
Strong global demand for Australian beef is also playing a role. Over $16 billion worth of beef was exported in the year to June. Overseas markets like the United States and China have increased purchases from Australia, helped by favourable trade terms and tighter supply in other nations. With the US herd at a historic low and Brazilian beef facing 50% tariffs, Australian suppliers are in higher demand, though not all are benefiting.
While some sellers gain from higher prices, others in parts of the supply chain or on vertically integrated farms may see limited or no improvement depending on their cost structures, contract terms and ability to pass on rising expenses. Although the cattle price surge suggests a boost for the livestock sector, the benefits are unevenly spread.