Wingham Beef Exports has already cut the number of days its is processing and rumours abound that other processors may follow suit.

Robert Gill, Alexander Downs described this winter as one of the toughest for the industry and he predicts some real pain is just around the corner.

The Gill family’s  Alexander Downs has an annual turnover of $25m based primarily at the 3265 hectare (8000 acre) ‘Alexander Downs’ property at Merriwa that encompasses a  beef operation including a feedlot plus a piggery and a feed mill.

In 2015 the company purchased 15,000 head of cattle and 250 head each week were leaving their property for processing.

Completing their vertical integration plans three months ago they purchased the abattoir Kurri Meats which Mr Gill said was working well despite the difficult training conditions.

He said the dry autumn followed by a cold wet winter meant cattle went onto fodder crops later and now there were few prime cattle on the market.

“We usually have plenty of finished cattle coming off crops at this time of the year but we only put ours onto the oats this week due to the season,” he said.

“That means as a processor you are paying too much for cattle at the moment – probably $200/head too much.

“Great for those selling but too much for processors so that’s why there is talk of meatworks cutting days or temporary shut-downs. Some real pain is coming.”

Mr Gill warned it would be hard for people buying cattle now at $1500/head to make big returns later on.

‘A good season may help plus lower grain prices but I hold real fears,” he said.

“It was good for everyone until the latest surge in saleyard prices of 30 per cent during the last month but now its hitting consumers and a correction will eventually take place.”