SKB Rodwells agent Phil Keane said the prices paid for export bullocks and cows were the highest he could remember in his 51 years as a stock agent.

Warrnambool Stock Agents Association president Hayden Lanyon said optimism in the beef industry was “very good” and the high prices were expected to last through to the winter months as cattle supply tapered off.

Mr Keane said 234c/kg was paid for bullocks yesterday and 206c/kg for cows — close to the top of 218c/kg reached for cows only a fortnight ago.

Mr Keane said the strong demand was expected to be sustained because of increasing worldwide beef consumption and the decline in Australian herd numbers due to drought turn-off in recent years and low profitability.

Jack Kelly of J & J Kelly stock agency said yesterday’s sale was “extremely good” with excellent prices across all categories of cattle.

“Our processors are looking for all forms of livestock,” Mr Kelly said.

The top prices reached for his clients included $2.40/kg for Charolais steer vealers averaging 393 kilograms, $2.34/kg for black baldy steers averaging 642kg and $2.32/kg for bullocks averaging 691kg.

Mr Kelly said one reason for the surge in prices was the supply of cattle from drought-hit northern NSW, Queensland and the Northern Territory had declined due to recent poor seasons. However, those producers were now looking to build up their herd numbers following good falls of rain.

The drop in the value of the Australian dollar had also boosted beef exports, he said.

Mr Kelly said the south-west had an “average” season but recent good rainfall had been very helpful.