Feeder heifers offer quick returns as north-south cattle prices diverge
A 40-cent-per-kilogram price gap between northern and southern steers is pushing northern feedlots to buy and trade southern cattle for faster cashflow.
Southern Angus steers are fetching about 530 cents per kilogram, while northern counterparts bring 560-570c/kg. The 40-cent spread is wide enough to cover freight costs of $2.80 to $3 per litre diesel.
Cattle shipped from Wagga Wagga or Albury back into Queensland feedlots land cheaper than locally sourced stock. Producers are buying light weaners, growing them to 380-520kg entry weights, and selling on in 4 to 5 months for faster returns.
This feeder market approach beats holding breeding stock, especially with a dry 2027 forecast. Feeder steers last week were probably 5-10 cents per kilogram dearer in major saleyards across northern NSW just on anticipation of this week's rain, traders said.
- 40 cents per kilogram
- North-south price gap
- 530 cents per kilogram
- Southern steer price
- 560-570 cents per kilogram
- Northern steer price
- 4 to 5 months
- Feeder turnover time
Why it mattersCattle producers can move stock faster and recycle capital more often when they trade feeders instead of holding breeding stock.
AustraliaAustralian livestock producers, especially in Queensland and northern NSW, now have clearer trading pathways to generate cash sooner from feeder cattle.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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