Warwick cattleman backs Angus to rise above herd
THE Australian cattle industry continues a strong market run with prices growing by 50% since 2014.
Jim Wedge of Ascot Cattle Co said Angus beef was a crowd favourite, with Angus cattle performing ahead of the broad price rise.
"Price in general has risen, but Angus is certainly ahead of the herd," Mr Wedge said.
The Warwick local attributes the breed's demand to their fast growth and versatile nature.
"They are a very good product. They're easy growing," Mr Wedge said.
"They grow more quickly and feed a lot faster than other breeds."
While Angus are better designed to cool, dry climates like that of Australia's south, studs such as Ascot Co Cattle still opt for the breed.
"Angus aren't suited to Queensland as well other breeds, but they do okay," Mr Wedge said.
"It's their quality that puts them ahead of other cattle breeds."
Latest reports from Meat & Livestock Australia have found cattle prices in general have increased dramatically in the last two years.
At the beginning of 2014, cattle prices were at 293.5 cents per kilogram.
The latest figures put the average price at 584.5 cents per kilogram.
"The rate at the moment is pretty good," Mr Wedge said.
"For the last 20 years, cattle prices have been undervalued."
Elders stud stock manager Jim Bruce told the ABC the price rise brought values up to a figure that was economically sound, rather than extortionate.
"It's where it needs to be, and where it ought to be," Mr Bruce said. "Our product has been quite cheap from a global perspective."
Prices are expected to average higher in 2016 than 2015 due to much tighter supply, restocker demand and a lower Australian dollar.
"I think the prices will stay up around, and fluctuate around a little bit," Mr Wedge said.
"It doesn't need to go too much higher. If they were too go too much higher it would be unaffordable, so the rate now is pretty good."
The high prices are thanks to marketing by Angus Australia, which has pushed Angus to become the beef of choice in many restaurants here and overseas.
"American Angus and Australia Angus have worked very hard to create a consumer awareness of Angus as a product," Mr Bruce said.