Commercial breeders may need to have $15,000 or even more to secure their picks at upcoming on-property bull sales, according to several of the state's stud stock auctioneers.
They all predict record-breaking returns for cattle will flow through to stud breeders with increased averages when auctions kick off next week.
Clearance rates are also expected to be close to 100 per cent, with limited numbers of unsold private selection bulls.
Nutrien SA stud stock manager Gordon Wood is conservatively predicting bull sale averages to lift 20pc above the $9000-$11,000 averages seen in 2021, but says that increase could easily be higher.
"The stars have aligned, cattle prices have been amazing with the (Eastern Young Cattle Indicator) still in the top 1pc and whilst there are some issues around slaughter space, this has not affected cattle prices at this point," he said.
"We have seen very good returns for weaners as well as heavier cattle and anyone with surplus females has seen them in really strong demand."
Mr Wood said many bulls had been sold in the paddock through the latter part of 2021 and recent heavy falls in the north are likely to buoy pastoral orders at sales.
"With rain and feed, breeders have wanted to jump as soon as they could but it has also been about lessening the risk of missing out at sales," he said.
Mr Wood encouraged buyers to jump into the sales early to secure the "right bulls" to improve their herds.
"We have seen from other years people at the early sales trying to secure bulls at a lower budget or the same budget and then end up having to lift their budget as the week goes on, or sometimes have to settle for lower quality," he said.
Spence Dix & Co director Jono Spence is bullish a few sale averages may lift up to 35pc - in line with the lift in weaner and feeder cattle prices in the past year- and expects the remainder to be on a par to 20pc better.
"It will be interesting to see where people take the next step in their bidding to," he said.
"For a number of years $5000 was the barrier, then there was an $8000 limit and then we broke the $10,000 one, where is the next one?
"Generally we see producers reinvesting in their enterprises when things are good - the cattle business is as good as we have seen it and producers are cashed up."
With the herd rebuild continuing, Mr Spence expects bulls with high calving ease and low birth weight figures to remain sought after, as they have been in the previous two seasons.
He also expects, with the strength of weaner sales, that high early growth will be a consideration for many.
However he has noticed a large variance in recent years between the behaviour of bull buyers at auctions.
"Some have a very short and strict selection criteria they follow, while others seem to only be chasing a certain trait, such as intramuscular fat or birth weight, and then there are a few that seem to have no set plan or criteria whatsoever," he said.
A lot of paddock bulls have been taken already so if people want bulls they will have to buy on-property, increasing competition at those sales.
- TONY WETHERALL
Elders SA stud stock manager Tony Wetherall is also tipping bull sale averages to lift 15-20pc.
"A lot of paddock bulls have been taken already so if people want bulls they will have to buy on-property, increasing competition at those sales," he said.
While he acknowledged some Angus studs had increased their offerings, he expected demand would easily absorb them.
"It (demand) could quite possibly flow over to some of the other breeds," he said.
"If people can't secure what they want in one breed they may have to look at something else as an option.
"The good rains up north always helps the Poll Herefords cause and the same with the Shorthorns, and the European breeds again if they are black, if they can't get an Angus they may go that way."
HILLS ANGUS STUD TO HOLD FIRST SALE
Adelaide Hills-based Angus stud Newlyn Park will be one of four studs to debut on the SA sales calendar.
Since establishing their stud in 2006, the Newman family from Meadows has gradually grown their clientele.
Stud principal Gavin Newman says the timing is right to move to an auction with 14 bulls on offer on February 12.
"In the past some people who have come to buy our bulls haven't even had a chance to see our best bulls so this is a more equitable way of doing things and we can show our bulls off to a bigger audience," he said.
"Things have never been better in the beef industry and Australia is well placed to supply the world demand for protein, especially now there is a return to good seasonal conditions."
Mr Newman says they have put a lot of effort into the mating decision of each of their 60 stud females.
"We have never been about just producing a paddock full of black cattle but producing the highest quality we can," he said.
"Temperament is important to us, as is growth, everyone wants as much weight as possible in their cattle.
"We have balanced that with calving and fertility traits and from our previous experience of stud stock breeding (dairy cattle) we like our cattle to look nice."
Other studs also holding their first on-property sales in the 2022 season are Tooperang Angus, Bayview Shorthorns and Limek Limousins.
Stock Journal Beef Week kicks off tomorrow (Friday) in the Mid North and runs until Tuesday, February 8. Check out the Stock Journal website for galleries from all four days.
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