Frequently Asked Questions

The BSM (Beef-Stock Market) is a revolutionary and exciting new concept. Some commonly asked questions and their answers follow. If you have any additional questions please contact Amber, the BSM administrator, by sending an email to admin @



What do you anticipate to be the average purchase price of cattle and how do you buy?

If today’s Queensland per kilogram buy price is $1.93 Inc. GST and assuming the animals are around 220kg, a typical buy price for one animal would be around $423.50AUD Inc. GST. The buy price is generally the actual price BSM professional buyers have paid for the stock at the cattle sale plus transport and identification costs.

To buy cattle for the first time go to and click on the BUY NOW tab. For purchases subsequent to the first approved order, clients can log into their personal PORTFOLIO PAGE and ADD TO PORTFOLIO.

BSM Gold members also have the option to give BSM authority to purchase cattle on their behalf as a buyer’s agent with allocated funds.

BSM Beef Pty Ltd owns the cattle when a client buys them. The BSM system is designed to allocate cattle (from lightest to heaviest) to clients as close as possible to the value requested on a weight basis. If a client were to nominate that they wish to spend $10,000; cattle are automatically selected to get as close as possible to that value (without exceeding the value). An official tax invoice is generated which lists the actual animal/s individual electronic identification number/s, weight/s and description/breeds. Buyers are given two working days to transfer payment funds (usually by BPAY).

The Purchase Process: 

  1. Click on the BUY NOW! button on any page of the BSM Web Site.
  2. Read and agree to the TERMS AND CONDITIONS OF SALE including the direct debit authority.
  3. Fill out your contact details and the account details where you would like your proceeds paid into and all other requirements in the REGISTRATION ORDER FORM.
  4. Print the Tax Invoice/Receipt and make the payment for purchase of required cattle within the next two working days by using the supplied BPAY reference number and the biller code.
  5. You will be e-mailed within 7 days (from the date of receipt of your order) confirming receipt of your funds.
  6. Upon filling your order, you are allocated with the number of animal/s whose present combined value comes closest to your intended purchase amount as stated in your REGISTRATION AND ORDER FORM.(Subject to our TERMS AND CONDITIONS OF CATTLE PURCHASE, MANAGEMENT AND SALE).

You can only purchase a whole animal. If the amount you state in the registration form does not allow you to buy a whole animal, BSM will only supply you with the number of whole animals that can be purchased for the amount you wish to spend.

Once your order has been accepted by us, you will receive an invoice followed by confirmation of purchase within seven days of receiving your payment.

Following payment, you can log into your own personal page and view your LIVESTOCK PORTFOLIO. To buy more stock you can use the ADD TO PORTFOLIO function in your personal page rather than having to re-register.

The breed of steers offered to customers will depend on supply however they are of high quality and are suitable for premium target end-markets. The animals will generally be weaner steers inducted typically at an average of 250kg and expelled (sold out) at generally 450kg if in a finished (fat) condition. Cattle are sourced by professional buyers and the costs of buying, transporting and inducting is included in the purchase price.

Clients can see weight gains and progressive real-time portfolio values within their ONLINE LIVESTOCK PORTFOLIO. Until cattle get close to sale time, this value will usually be lower than the purchase value (as it is calculated on finished cattle per kg rates – remember heavier cattle, generally are worth less per kilogram than lighter stock). The weights and values are a guide only. Should a client be GST registered and have bought a total of 20 or more head, they will be given the option for a BSM Gold login.

You also have the option of receiving monthly reports on weight gain, paddock condition, rainfall, and market trends emailed to you by the livestock manager. By using electronic identification, stock progress is monitored throughout the time you own them.

How are cattle prices on the BSM website determined? 

You can purchase one or an entire herd of beef cattle through the Beef Stock Market website. Cattle purchase prices are derived from the price stock are purchased for plus any costs associated with getting livestock to the contracted farm and inducting them. Sale prices are the price BSM can secure the cattle as an agent for you. Unfinished cattle are sold back to BSM at a lower price with no commission.

Our “welcome” page quotes three prices:
Buy Price The price per kilogram at which you can purchase cattle
Indicative Unfinished
Sell Price
The price per kilogram for which cattle can be sold outside the period in which the livestock manager suggests it be sold.
Indicative Finished
Sell Price
The price per kilogram for which cattle can be sold when the livestock manager suggests.

Prices are all in Australian dollars ($AUD) and are revised weekly. The quoted prices include GST, transport costs, electronic identification, induction and expulsion costs.

Note: Non-GST registered buyers have a pricing structure that reflects the actual amounts after GST has been taken into consideration by BSM, its suppliers and customers (who are all GST registered).

What are the Beef Stock Market fees and charges?

During ownership:
Grazing Fees $1.15/kg gained.
(Only payable after a live weight update.)
At sale time:  
Agent's Commission 4% of the full sale amount
Compulsory Industry Levy $5/head
Other Marketing & Transport Costs Varies

Sales fees are automatically deducted from your sale proceeds. You may also be liable for additional veterinary expenses should one of your animals become ill. You will be notified should this occur.

What is backgrounding?

Backgrounding is the term used within the cattle industry to describe the process of ‘growing out’ cattle or ‘preparing’ them for entry into a feedlot market. Backgrounding is different from agistment in that payment is determined by the amount of kilograms that the animal gains rather than a per week rate.

Show me a return example

Please see our returns page for an example based on live prices and current BSM averages.

Do I have to be GST registered to buy?

No, anyone can own cattle. Clients who are ABN holders and are GST registered do however have the advantage of being able to claim back tax credits on the purchase price of stock and all grazing costs as well as receiving a sell price that incorporates GST as they are selling as a GST registered supplier to GST registered buyers. More explanation can be found on this on the website or speak with a tax advisor or accountant. To obtain BSM Gold status, cattle owners must be GST registered.

Why is the 'Selling Today?' finished price lower than the 'Buying Today?' buy price?

The buy price quoted on the BSM homepage is the price for cattle in the 180-250kg weight range. The sell price is for cattle in the 380-450kg weight range. It is normal in the cattle industry for lighter, younger animals to be worth more per kilo than heavier older animals. Cattle owners make their money by the kilos that the animals put on. The buy and sell prices do affect your ultimate return but it is the weight gain that is the most important factor. It is possible that when your cattle are ultimately sold that the finished price per kilo may be higher than the per kilo buy price you paid.

The buy price is relevant to you if you are buying cattle today, the finished price isn’t as you will be selling your animals in about 6-12 months and the finished price then is likely to be different to what it is today. Likewise, the finished price quoted is for cattle that have been in the BSM system for the time it has taken them to put on the desired weight gain (and right condition). It is only relevant to you if your cattle are in the target weight gain category.

What do you expect to sell the cattle for?

All prices move with the market. The Sell Priceis the actual price BSM is able to sell the stock for less a fee for the transportation of the cattle to the final destination and any additional fees associated with selling at the market. By opting to use BSM’s complimentary management service, the cattle are sold in optimum condition at the Finished Sell Price. To receive the maximum return, you must be a GST registered ABN holder. Non-GST clients have a different rate as BSM sells cattle to other GST registered businesses.

The Sell Prices that are listed on the website when a buyer purchases cattle do not necessarily reflect what an owner will receive for cattle when they sell their cattle in time. Generally, Sell Prices are affected by weather and market factors.

Finished cattle are usually sold into a feed-on market (feedlot) typically at around 400–500kg. On occasion the livestock manager may sell earlier or later to maximise returns for owners or to minimise risk if heading into seasonal or market uncertainty. In predicting future movements in the market you can use sources such as the links found on the site (weather and industry). You could also investigate cattle futures for hedging your bets. At sale time BSM Beef is acting as your agent and as such you are paid from sale proceeds deposited by the buyer into our trust account.

How long will I own the cattle before I sell?

A client can opt to sell stock at any time for an Unfinished Sell Price. For the best result, it is suggested that clients opt to use BSM’s COMPLIMENTARY MANAGEMENT SERVICE and ensure they receive the Finished Sell Price. The state livestock manager can then assess the weight and condition of the animal to market it effectively. The animals usually need to put on at least 150kg in the BSM system to get to a saleable weight then seasonal conditions decide their condition (fat cover). In good conditions stock will put on up to or over 1kg/day on grass. WA and Victoria on irrigation may even perform better than this. In dry conditions this could fall to 0.1–0.4kg/day. Yearly averages on grower properties in Queensland are currently at approximately 0.65kg/day with Victoria averaging over 1kg/day. Turn around time could be as little as 6 months or as much as 12 months depending on the season. It is in the interests of BSM contract growers to have the cattle gaining weight well as they are remunerated on a weight gained basis. As a cattle owner, clients only pay for the weight gained. By buying in less favorable seasonal conditions, buyers may also benefit from a lower purchase price. It is very important to understand that cattle are individuals and as such, the rate of weight gained will differ between animals. This is normal.

What are the estimated costs of feed, maintenance, supervision etc?

Cattle are grown out on a variety of pastures. Some supplementation may also take place. The only cost for feed, maintenance, supervision, and basic husbandry is the per kilogram Grazing Fee which is direct debited each time your cattle are weighed at the paddock. Presently, this fee is $1.15/kg Inc. GST. Transport costs, induction and sale expenses are built into the quoted buy and sell prices. Additional vet charges could occur should an infection have to be treated. This is rare but has been accounted for in the contracts.

What are the risks?

The stock you buy are actually identified as belonging to you. If it is unfortunate enough to die, you the owner carry that risk as there is not a refund for the amount outlaid. It is possible to insure against death, however the rate of death expected in most fattening situations is under 1%.

Other risks that will lower your possible investment return include falls in beef prices, drought and other natural disasters, injury leading to decreased weight gain or disease such as 3 day sickness which decreases average weight gain. In addition, if your animal requires veterinary attention, you as the cattle owner will be responsible for the costs.

As the Beef Stock Market charges a weight based Grazing Fee, it is in our interest to minimise these risks, however it is important to highlight that no guarantee exists to cover the stock owner. In the case of death or serious illness or disease, or where veterinary attention may be required you will be notified by email. Insurance will soon be available through BSM Gold.

How do you know the exact weight at the time of purchase or sale?

Obviously not all stock will have been weighed at the day of purchase. Under clause 4.2 of the Terms and Conditions of Cattle Purchase Management and Sale, the Livestock Manager with the aid of his electronic tracking system, is able to estimate the present weight with reasonable accuracy. Years of statistical data gives an expected weight gain for the time of year in which the purchase occurs, and this weight gain is continually added to the last recorded weighing of the animal which usually occurs daily.

Purchase time: At induction, all weights are adjusted on an individual basis back to the weight they were at the official weigh station. This correction to the inducted weight ensures BSM Beef Pty. Ltd. is selling cattle on the same basis they were purchased on. Correcting weights back to purchase weight also makes the system fair for contracted "backgrounders" whose subsequent weighings and payments are based on a "Shrunk Weight". Obviously not all stock will have been weighed on the day a buyer was to purchase them. Should some time elapse between arrival and induction and the purchase, estimated daily gains are used in conjunction with an electronic tracking system to keep real time weights statistically accurate on any particular day.

Sale time: At sale, all cattle being sold are weighed before being delivered to the buyer. Again these individual weights are adjusted to the weight the sale is based on, often this is at an official weigh facility. The final adjusted individual weights is what all fees, charges and proceeds are based on.

Intermediate weighings: Although BSM's unique system acts as a guide in keeping weights real-time, cattle are still weighed from time to time to adjust estimates to real weights. With animal welfare in mind and in an effort to reduce handling stress, BSM uses a shrink policy so cattle do not have to be weighed fully "shrunk". This is an equation based on the number of hours off feed as a percentage loss of weight (up to 6%). It is at these intermediate weighings that your grazing fee ($1.15/kg gained) is worked out and direct debited from your selected bank account. Intermediate weighings are not of vital importance for buying or selling purposes but are provided to give you an estimate of how your individual animal(s) are performing.

How does the electronic identification and monitoring work?

As soon as cattle are purchased they are processed through the cattle yards to be weighed. An electronic tag with a unique number enables individual identification. This tag identifies the particular animal each time it is weighed. A visual tag is also put in the animal’s ear so that cattle have two forms of identification and the visual tag assists with identifying animals without the use of an electronic tag reader. Details about each individual animal are automatically recorded into the stock management computer system operated by BSM. Upon purchase you will receive a list of the individual cattle ID’s of your particular animals. Within your portfolio you can, at any time, tell where your stock can be found and their present expected weight.

Where exactly will my cattle be kept and can I see them in person?

Beef Stock Market has contract backgrounding properties throughout Queensland and in other states of Australia. You will be notified at purchase time of the property/paddock location where your cattle are being run. The Beef Stock Market website has links to travel and accommodation sites for the areas where your cattle are being grazed. As you actually own the stock, you have the right to see them upon request. On-farm visits can be arranged through the livestock manager who may be contacted at Alternatively, Agri-tours will be run throughout the year for each property. Stay tuned for more details.

Can purchases be made at any time?

Yes. The Terms and Conditions of Cattle Purchase, Management and Sale outlines the conditions of purchase. As long as there are cattle available, you are able to purchase. Reasons that cattle might not be available may be that market conditions prevent availability of desirable cattle or prices are too high. Seasonal influences may also mean fewer cattle can be run. The idea of the Beef Stock Market is to make it possible for anyone who desires, to become a part of the Australian beef cattle industry, and as such we will do our utmost to make sure you get the stock you require.

Is it possible for multiple investors to share a herd of stock units?

You can only purchase a whole animal as we will not allocate separate part shares in an animal between a number of different purchasers. If the amount you state in the Registration and Order Form does not allow you to buy a whole animal, we will only supply you with the number of whole animals that can be purchased for the amount you wish to spend. Where there is a difference between the amount you wish to spend and the total purchase price for whole animals, you need only pay us the purchase price, administration fee, and the purchase fee.

All Beef Stock Market purchases are required to be made by BPAY®. It is possible that your BPAY® linked credit card or bank account may be in the name of more than one person or entity however we will only base your purchase on the Registration and Order Form details as submitted to us. The Registration and Order Form only makes provision for one individual or entity purchaser to complete their details but if you wish to own the stock as a trustee or in a business trading name, you should include those details in the appropriate section of the Registration and Order Form.

How long has the Beef Stock Market been in operation?

The Beef Stock Market has been under development since 1999. After a trial period in 2003, the Beef Stock Market was made commercially available in January 2005. Since this time, the system has grown to encompass backgrounding properties in most states of Australia. The Directors of Beef Stock Market have extensive experience within the cattle industry and Beef Stock Market is simply an extension of their existing industry participation.


DISCLAIMER: While all care has been taken in making available this information and deriving the content from sources believed to be accurate and current from time to time, B.S.M. Beef Pty Ltd CAN 098 395 576 and its employees, agents and contractors (“Beef Stock Market”) make no warranty or representation about the accuracy, completeness or suitability for particular investment or other purposes of the information provided. The information is provided “as is” and for information purposes only without express or implied warranty. Any person viewing this website must make their own independent enquiries and seek appropriate and independent professional or financial advice before relying on or using any information provided. You should obtain such advice prior to making any investment decisions and carefully consider all information provided in this document. Any financial forecasts of returns or tax benefits or advantages stated are made as estimates only and you should seek your own independent professional advice and conduct your own further enquiries to satisfy yourself of these estimates as they are based on assumptions of occurrence of anticipated future events and may be not affiliated with any securities exchange, stock market investment service or any other trading or investment service dealing in shares, stocks, bonds or other financial investments. Nor is it associated or does it purport to operate in any manner as a licensed entity providing or approved to provide such services in relation to the above investments and the investments described in this document relating to beef cattle.





































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