Chris Howie
Recently, like many Australians, I took advantage of the Easter ANZAC break to indulge in fishing and enjoy a refreshing stubbie. Just as I thought I had the Murray Cod of a lifetime on the line, it slipped away merely two meters from the bank. “You need a bigger net,” my brother-in-law’s words echoed in my mind.
Seasonal Observations
Driving from South Australia to Northern New South Wales via Corryong, Bathurst, and Inverell, I became acutely aware of the significant differences in land conditions. South of Bathurst, conditions appeared dry and unimpressive, particularly as I reached Geelong, Mortlake, Warrnambool, and Southern Australia. Conversely, moving north of Bathurst, the landscapes improved dramatically, notably around Mudgee, Gunnedah, and Barraba, where I found them to be more vibrant and lush than I had ever seen.
While frost has yet to arrive to nourish the grass, crops are thriving. As one Queensland agent remarked, “You will run out of fuel before you run out of grass to look at.”
Cattle Market Insights
Since January, cattle prices have shown remarkable robustness. The heifer market took a notable upswing with a substantial pastoral order observed in Northern New South Wales, where well-bred heifers are trading in the $3.50 to $3.75 per kilogram range. This spike resulted in a 20c/kg increase for heifer orders in the south.
Steer prices have continued to vary between $3.85 and $4.50 depending on size and quality. However, persistent dryness in the South has led to an influx of numbers in markets like Wagga, Barnawartha, Ballarat, Yass, Mortlake, and Mt Gambier, contributing to the typical Northern sale series.
Despite several lightweight orders for calves hovering in the 150-250kg range, they have not yet materialized due to favorable prices. I believe the increased supply will lead to a softening in prices, prompting those orders to take action.
Opportunities in Cow and Calf Units
Peter Gordon, a livestock production advisor for Yenda Co-op in Griffith, emphasizes the considerations necessary for investing in cow and calf units. Our discussions often focus on feed costs. If a cow, viewed merely as a factory, is valued at $1000 and $500 worth of hay is added, her value remains unchanged unless circumstances shift.
However, investing the same in her calf opens several avenues for sales and weight gain. Personally, I would recommend retaining the calf or selling the units and reinvesting in a line of heifers to enhance herd quality while maintaining some capital and reducing feed costs.
World Angus Forum
I had the honor of speaking at the World Angus Forum held in Tamworth. This event, supported by Angus Australia and various studs, showcased exceptional engagement, with attendance numbers exceeding expectations significantly. Many breeders, like Stuart and Natalie Hann from Nampara Angus, noted that younger generations are propelling these forums, highlighting their investment in the future of the industry.
The caliber of speakers included processors who acknowledged the increasing demand for information from producers. This openness is a positive shift in the livestock sector and paves the way for enhanced collaboration between various industry stakeholders.
Emphasizing Measurement
Though I’ve discussed the importance of tracking performance in kilograms previously, it’s crucial to establish a baseline for measurement. At the producer level, the cattle and sheep industries remain the only sectors still primarily discussing head counts rather than total weight.
Utilizing technology for performance feedback such as MLA MyFeedback and Black Box Co, alongside real-time weighing systems like Optiweigh, equips producers to manage outcomes more effectively, aiming for improvements while minimizing weight loss.
Challenges in the Sheep Market
The mood surrounding the sheep industry feels particularly bleak, reminiscent of 1991. Adverse conditions in the South, coupled with economic shifts, have prompted many banks to steer farmers towards cropping over livestock. Nonetheless, there is a silver lining with strong demand for quality lambs and favorable pricing for mutton as processors hunt for solutions amidst a tight supply.
As we anticipate winter with limited sheep feed in the pastures, I wouldn’t be surprised if we experience further surges in mutton pricing. It’s essential not to underestimate the influence that an increase in goat supply has on the market.
Looking Ahead
Young Luke Turnbull of Tom Groggin Station recently triumphed in the Junior Man from Snowy River Challenge. The entertaining re-enactment of the classic poem added laughter and nostalgia to the event, highlighting the necessity of storytelling in our industry.
Career Opportunities in Stock and Station
Interest in careers within Stock and Station agencies has notably increased over the last three years, primarily due to a wave of retirements among industry veterans. The demand for budding professionals spans all states and species.
Conclusion: Picking the Winners
Awareness and adaptability in livestock handling are paramount. The future calls for not only resilience but also innovative approaches to ensure longevity in the industry.
- Cows and Calves
- Ewes and Lambs
- Plain Mutton – Short-term Trade
- PTIC Cows
- Store Cows
- Colored Heifers
- Store Lambs
- Spare Hay for Sale
Chris Howie is a regular contributor to Beef Central and Sheep Central, and the CEO of RMA.
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