With the slowdown at this time of year for live export shipments out of Broome and Darwin, north Queensland has remained busy with export orders out of Townsville. After a busy December, January has seen significant export orders – nine separate shipments and counting. This sustained demand over the last several weeks has seen prices for feeder steers destined for Indonesia rise to $3.60, and feeder heifers to $3.30. This significant increase in pricing has seen many producers go mustering in the heat and threat of rain to take advantage of this spike in the market.
Everyone is holding out for a reasonable wet season, and some return to normality. It has been a good year for most with weight gains and condition of cattle. Even though there hasn’t been big feed reserves in place, the unseasonal winter rain enabled many to keep cattle going ahead. The bulk of the country now, however, is showing the effects of a hot start to spring and summer, and definitely need the wet season to materialise.
Tony Bowen, Landmark Charters Towers, reports the big challenge facing the north Queensland livestock industry is the issue of sustainable pricing. The supply and demand has ensured our pricing for most descriptions is strong, if not at record averages. This is to be balanced out with the pushback from the end customer.
High Australian cattle prices are starting to affect demand for our product. We are under competition from live animals to be exported from other countries, and frozen boxed Indian buffalo beef. It would be to our long-term disadvantage to price ourselves out of some of these good markets, forcing them to find alternatives, and then be wanting these markets back in a year or two when we need them.
2017 is shaping up to be a conflict of supply and demand – let’s hope that sanity prevails; we get a good, wet season and have some realistic pricing, where everyone can make a return and create value, and have a sustainable livestock industry for all players in the supply chain.
ALPA has released the new Auction Terms and Conditions for February 2017 use. These are recommended to ALPA members and must be displayed in a prominent position at saleyards. Vendors, buyers and agents should read and understand the terms they are selling/buying under.
Now is also the time to start thinking of who you may nominate for the 2017 ALPA Fairfax Media Agency Award. The winner wins a trip to the 2018 Calgary Stampede in Canada, courtesy of ALPA, Fairfax Media and Quadrant Ag Tours.
- Colby Ede is a member of Australian Livestock and Property Agents Association (ALPA).