Producing beef over a million acres
- Kate Marshall
- Jan 30, 2023
- 4 min read
Updated: May 2
Grainews - By Chris McCullough
There’s no doubt about it — the ongoing increase in beef prices has been a welcome boost to the coffers of the Tipperary Group of cattle stations in Australia’s Northern Territory.
However, general manager David Connolly knows he can’t rest on his laurels as the situation could change at any time if market dynamics follow a different path.
The Tipperary Group consists of three stations, namely Tipperary Station, Litchfield Station and Douglas West Station, which accumulate to over 4,000 square kilometres or 1.2 million acres.
That’s a huge area for the 45 staff to farm, but it’s not just cattle that bring in the bucks on these stations. New enterprises are now part of the business infrastructure.
Connolly has been general manager for the group since February 2015. The group is owned primarily by Allan J Myers, a renowned barrister from Melbourne, and his investor partners. Myers has owned the group for 20 years.
“Tipperary Station runs primarily Brahman cattle that can handle our high heat and low-nutrition fodder in the dry season and humid conditions in the wet,” says Connolly. “They are indeed a very hardy animal.”
The stations run about 10,000 breeding females and purchase 25,000 to 30,000 cattle per year in an all-open range system. The optimum numbers are 42,000 head, with cattle flowing from Tipperary and Douglas West to Litchfield for finishing.
A diversified operation
Along with the livestock operation, the diversified farm business also produces 10,500 lemon trees and 4,000 mango trees.
“Adding cash crops is another string to our bow as we grow 2,800 hectares of cotton as well as hay, silage and sorghum to sell,” says Connolly. “Plus we are involved in carbon farming (regenerative agriculture) and offer farm stays for tourists”.
Running such huge cattle stations in Australia requires a lot of water sources to keep the animals alive. In this part of Australia there are only two seasons, wet and dry, which both bring their own sets of challenges for farmers.
The Tipperary Station, located about 220 kilometers south of Darwin on the confluence of the Douglas and Daly River systems, has plenty of naturally available water.
“We are in the sub-tropics here so we have monsoonal rainfall from November to March annually,” says Connolly. “Most of our stock is sold in the wet season to attract the premiums.”
All of the breeding stock at Tipperary is naturally mated. Connolly says the herd is gathered twice a year for processing.
“We muster all the cattle twice per year; first round in May to wean and brand calves and then a second round in October or November to muster and sort off cattle to market in December to February. We sell almost exclusively into the live export market to Indonesia and Vietnam with cattle weights ranging from 350 kilograms live weight to 480 kilograms live weight at 18 to 24 months old.”
Staff at the stations vaccinate the young cattle against clostridial diseases and the breeding cattle are vaccinated against botulism.
With proper management the cattle have good longevity, with breeding females remaining productive for 11 to 14 years. However, predators can have an impact on mortality rates.
Marketing protocols
When it comes to selling cattle, there is a strict protocol to follow, especially with animals destined for the overseas markets.
“We use our own mustering camp as well as assistance from outside livestock contractors to gather the cattle for drafting (sorting),” says Connolly.
Cattle are then drafted for sale and selected by the buyer and sent to a 48-hour quarantine in a licensed facility, before they can make the trip across the sea.
The cattle market is at an all-time historic high. While that is good news for sellers, Connolly says it has also put massive strain on the supply chain for meat works processors and export customers.
Connolly says the price is now at a level where Vietnam buyers are sourcing alternate supplies due to affordability issues and Indonesia may soon follow suit.
“I don’t think there will be a market slump anytime soon as cattle numbers are in such short supply. It will take a rise in overall cattle numbers to really set this market back.
“Seasonal conditions, with much of Australia enjoying good rainfall, is also a factor. Prices will move up and down as usual but the underlying demand is such that prices are likely to remain high in the foreseeable future, due to short supply.”
In one sale the Tipperary Group sent 6,000 steers to Indonesia, which is one of the regular markets for its cattle.
Connolly says they have to be vigilant to prevent “wild” livestock from getting mixed with cattle destined for export. These wild cattle have value, they just can’t mix with those that have been selected and meet export standards.
“There are indeed some ‘invading’ livestock that has to be managed on the stations that can be a threat to the cattle by bringing in diseases and competing for the forage,” he says.
“We have a percentage of what we call ‘cleanskin stock’, basically unbranded cattle and buffalo which are harvested off the property. They are running wild so we need to control their numbers. Normally, we would catch and sell about 500 of these buffalo per year.”
Connolly is the current president of the Northern Territory Cattlemen’s Association.
“In this role I oversee the board and executive management of Australia’s premier Cattlemen’s Association,” he says. “Our mission is to serve and protect the interests of Northern Territory cattlemen. It is a voluntary position that works with governments of all types to protect cattlemen’s interests.”
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