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Improved meat prices and increased rainfall provide window of opportunity for rural sellers

November 16, 2023

Australian cattle and sheep producers have received some relief as meat prices rebound following a difficult period marked by oversupply and declining values. 

The welcomed rainfall in some areas of the country has contributed to better prices and has the potential to inspire some landowners to consider listing their rural properties.

According to data from Meat & Livestock Australia (MLA), the industry benchmark, the Eastern Young Cattle Indicator (EYCI), has rebounded by 14%, reaching $3.99 per kilogram after bottoming out at $3.49 in October. Lamb prices have also seen a significant resurgence, increasing by 12% to $4.59 per kilogram, up from a low of $4.11 in September[i].

Rabobank’s senior animal protein analyst, Angus Gidley-Baird, shared the optimism: “Producers now have a clearer picture of their stock numbers, and we can expect increased stability in the market.” Gidley-Baird predicts that EYCI prices will stabilise between $4.50 and $5 for cattle and around $4.50 to $5 for lamb over the next few months[ii]

With seasonal outlooks improving, Raine & Horne Rural SA’s Principal & Rural Specialist Paul Clifford has listed a high rainfall Fleurieu Peninsula dairy farm “Blinkbonnie Dairy” at 115A Bennett Road, Delamere, selling for under $3 million.

Travis Wentriro, the Network Manager for Rural at Raine & Horne Group, emphasised that recent rainfall in certain parts of Australia have provided a “window of opportunity for those contemplating the sale of rural properties”.

“While areas such as Casino in northern NSW or SA’s Fleurieu Peninsula have received some rainfall, there are still farmers actively handfeeding cattle. However, the positive development is that the landscape has transitioned from a dry, brown landscape to a green hue,” remarked Travis.

He pointed out specific instances, such as in Quirindi last week, where a property listed for sale received 50 mm of rain. “Although the feed takes 4-5 weeks to regenerate, the rain refreshes the property, enhancing its visual appeal.”

Travis highlighted the significance of rainfall for the rural real estate market, noting, “Essentially, even a modest amount of rain positively impacts the aesthetics of a property for sale. Photographs no longer capture dry paddocks and half-empty dams.”

Travis continued, “Rain enables agents to venture out to properties and capture fresh images of paddocks and dams, presenting an overall more appealing picture to potential buyers.”

If you’re considering listing a rural property, contact your local Raine & Horne Rural estate agent today.