STORE CATTLE PRICES

Taranaki Daily News, 25 September 1940, Page 2

STORE CATTLE PRICES

WELLINGTON MAN'S VIEW PASTURE GROWTH EFFECT It is timely to review the store cattle market, to assess basic values, apart from such market "waves" as may be seen, says a Wellington writer. The conclusion reached is that the wonderful pasture growth over the whole North Island will tend to push prices rather above true values. | Hereunder are average prices for "good I average" steers at the Feilding spring cattle fair each October for the last four 1 years (the order is 1939, 1938, 1937 and 1936):- ' Yearlings: £4 5s, £5 10s, £7, £6 10s. | -Two-year: £6 10s, £7 5s, £8 10s, £7 15s. ) Three-year: £8 15s, £9, £10, £9 10s. The averages for four years for each class of cattle are: —

It should be noted that the growth from one to two years was valued at 33 9d, and from two to three years old, at 36s 3d, an average for the two years of 35s. Co-incident with the autumn cattle fairs, the store cattle market then obtaining was reviewed by this writer:— "Does it not seem reasonable to expect that values should again settle about those average prices . . he then wrote. Then followed this prophecy for prices that would reasonable this October:— "Let us say £6 for yearlings; these today making £2 15s, show a wintering return of £3 5s. In case of two-year steers let us expect, say, £7 10s; these now selling as 18 months cattle at £5, show £2 10s return for under five months' keep. Finally, consider three-year steers, reckoning on, say, £9 5s as their spring price. These now making, at two and ahalf year-olds, £6 6s only, would show £2 19s return for wintering. "To check up these expectations, consider the spring purchaser. Say he buys the three-year steer to fatten at £9 5s. Such could be put off in seven months, in. say, April, 1941, and should certainly kill out at 7201b. At 34s a 1001b, this gives £12 4s 6d gross; allow 10s for 'to port' charges, and, say, 2s 6d for grading losses; total deductions 12s 6d, leaving £11 12s nett return. Purchased at £9 5s, the steers have earned £2 7s profit (nett) for seven months' surplus grass, with very little trouble." Since that was w'ritten much has happened to disorganise the hide market. I have even lately heard a whisper that the beef sehedule will be back 2s a 100 on this account. That drop I would view as utterly ridiculous and uncalled for. I reckon one of ls 3d to ls 6d is enough. Had last seasons beef sehedule price of 34s been still in prospect, I would hold that our April estimates for this spring should still rule as "true values," namely. £6 for yearlings, £7 10s for twoyear steers, and £9 5s for three-year-olds. But because of the hides drop we must reckon upon a ls 6d a 1001b drop in the sehedule; that is Us a head on fat chiller weights cattle. This reduces the fattener's gross return to £11 ls a head. That must be the foundation for values. Now consider how the 11s should be appdrtioned. The burden should be spread over all concerned. Instead of ■ 47s nett profit, the fattener should fairly accept 43s, On this basis he would pay £8 18s for the "gcod average" three-year steer purchased. For growing the steer from two to three years old the increment should be 32s instead of 35s, and so the two-year steer would be worth £7 6s. Again, for the previous year's growth, yearling to two-year-old, a usual 30s increment should come back io 28s. and this makes the yearling worth £5 18s. The losses are completed by that of 2s borne by the vendor of the yearling steer. On this basis. I consider that fair, true values for "good average" quality steers on to-dav's market would be:—

But feed being as it is, higher prices appear likely at auctions.

Yearlings £5 16 3 Two-year £7 10 0 Three-year £9 6 3

Yearling £5 18 0 i. wo-year £7 6 0 Three-year £8 18 0