Throughout July bull sales have started to find a rhythm.  As expected, 2024 has seen generally lower sale averages, however the demand for bulls does appear to be on par with previous years.

The 2024 sales to date have been dominated by British breeds, principally Angus and Hereford.  While other breeds have had sales, the numbers offered to date are not significant enough to draw meaningful comparisons against last year.  However, the results from both the Angus & Hereford breeds do allow some early trends to emerge.

While many producers focus on the average and top prices achieved at a sale, most industry figures will suggest that the clearance rates are often more telling.  Sale clearances are a stronger indication of producer confidence, the general demand for bulls and the access to bulls because of numbers catalogued.

Across the 19 Angus bulls conducted so far this season, there were 1156 bulls offered.  In comparison to 2023, where 1106 bulls were offered, this represents an increase of 4.5% in total number.  The clearance rate for those sales in 2023 was 95% compared to 91% this year.

Within the Hereford breed the number of sales reported for the same period was slightly lower, with 10 sales.  Numbers offered were almost on par between 2023 with 372 bulls presented in 2023 and 367 this year (about 1.3% less).  However, clearance rates across these sales increased marginally from 88% in 2023, to 90% this year.

These strong clearance rates for July are encouraging.  It suggests the demand for bulls remains strong, in line with early season suggestions that producers will be looking to make improvements to their bull teams.

Average Prices $/Hd across 29 Sales

Changes to the average price for a bull are interesting to note.  Demand for Hereford bulls has remained constant in comparison to 2023.  The slight increase in clearance rates is encouraging, and while the average price has dropped by 2.5% (from $10,905 to $10,631) it could be suggested that overall confidence remains largely unchanged among producers seeking whiteface bulls this year.

Across the Angus sales, there has been a more noticeable drop in the average price for bulls.  In 2023, the average was $13,273 for the 19 sales that were held in June and July.  This year those sales averaged $11,149 head, a fall of 16%.  Although more bulls have been offered this year across these sales, the combined impact of a slightly lower clearance rate and lower average prices has had a noticeable impact on the total gross value of these sales.

Recent years were characterised by several national breed record prices.  To date these records have not been impacted.  The average top price across Angus in 2024 was 33.3% lower at $32,605 and in Hereford it was 20% lower at $29,450.

There is still a very long way to go in the 2024 spring selling season.  However, these early sales do provide a few pointers that are worth considering.  It does appear that producers are purchasing bulls with confidence, even if they are paying lower averages for individual bulls.  The average clearance rates could suggest that producers are purchasing multiple bulls at a sale, reflecting the ability to acquire leading genetics at a more favourable price than in previous years.

The trend for clearance rates to decline while sale numbers increase could potentially impact some seedstock breeders.  It is likely this trend suggests producers will be more selective in their purchases and if the quality of the increased numbers does not meet expectations, a high clearance rate will be unlikely.  It’s also important to remember that more animals for sale will not compensate for the combination of lower clearance rate and lower per head averages.

Alastair Rayner is the General Manager of Extension & Operations with Cibo Labs and Principal of RaynerAg.  Alastair has over 28 years’ experience advising beef producers & graziers across Australia.   He can be contacted here or through his website www.raynerag.com.au