WHEN WILL IT END: Landmark Injune's Don Kelly believes it will take a braver man than he to predict when the incredible beef prices will start to decline.
WHEN WILL IT END: Landmark Injune's Don Kelly believes it will take a braver man than he to predict when the incredible beef prices will start to decline. Tom Gillespie

Agents not sure when 'unsustainable' cattle prices will drop

IT WILL take a braver man than Don Kelly to declare when we'll see an end to these amazing beef prices.

The Landmark Injune agent sold cross-breed cattle for two vendors at Tuesday's store sale, with prices for steers averaging between 350-420c/kg on the day.

While the market has been regularly sitting above the $4 mark, Mr Kelly said it has not reached the levels he saw back in the 1970s.

"Probably not (that high) in terms of buying power - in 1974 a deck of bullocks would be buy you a new Toyota and we're not up to there yet,” he said.

"The price of fuel and the economy was all relative to that, so we haven't got back to that.”

Tuesday's sale also saw a bounce-back in stock numbers from last week, and Mr Kelly said this had only helped to attract more buyers.

"It (the market) is definitely at least fully firmed, which means it's at least the same as last week and even dearer in other places,” he said.

"The sale is bigger than what we had last week and the bigger numbers have brought more clients.

"The more competition has kept it all pretty firm.”

Mr Kelly said he was loving the current prices, but cautioned it was a case of 'when', not 'if', the market comes back to earth.

"I don't think anyone sees it as being sustainable - 'when' is the $64,000 question and I don't think I can predict it,” he said.

"It's dangerously unsustainable when the (consumers) have a choice between the price of steak and a chicken, and their preference is going to go to the chicken if budget is an issue.

"It's all supply and demand - the US is now in a rebuilding stage, so while that happens their numbers are tight, but when they get to full production is a dangerous time for us, because they sell their over-production for whatever price they can get.”


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