The market has certainly come a long way since the clouds began to gather above the horizon a while ago. The outlook was grey. Historical drought conditions, unparalleled fire destruction, combined with the unprecedented COVID pandemic, have all contributed to a climate of turbulence and exceptional conditions. A few months along, perhaps we are beginning to weather the storm. The market at the moment is very solid. Some even say "it's as good as it gets".
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The biggest drought in living memory has taken its toll on numbers and supply, and demand factors have well and truly kicked in. Buying support for store stock from our agents south of the border, both in saleyards and on the AuctionsPlus platform have been phenomenal. Combine this with excellent processor and feedlot support within Queensland and again in the south, creating what could be described as the perfect storm. From a position that felt like the world was coming to an end to where we are today, we can begin to anticipate that in fact for the time being, we have "weathered the storm".
While it's good to be selling livestock at the moment, it still presents challenges to traders and restockers, putting margin pressure on traders and making restockers nervous. If favourable seasonal conditions prevail, the market can continue to remain at solid levels. What is needed in our industry is continuation of these good prices so producers can recover. Saleyard numbers in Dalby are the lowest they have been for many years particularly for prime stock. Roma and Blackall seem to be still yarding a few. This is due to the continual dry conditions in western and central areas of Queensland, in desperate need of a break.
In this current environment now more than ever, agents play an integral role in agriculture in providing a service for their clients. While seasonal conditions have had the biggest impact on agriculture over time, these impacts seem more frequent. Our markets, whether domestic or export, are changing more regularly and we are seeing geopolitical issues and economic uncertainty playing more of a role every day. Additionally, more recently we have seen processors shut their doors. Our agents are using best practice to keep saleyards trading livestock every week. Furthermore, technology is changing the way we do business. Agents are at the forefront in facilitating sales and coordinating both online and virtual auctions, while providing traditional marketing expertise.
In most areas of Queensland the greatest impact has been drought. Rural families and communities have worn the brunt of this devastation. However, it is a credit to these people, where despite adversity, they have continued to forge ahead. Building business in these times of unprecedented circumstances, requires taking risks. One of the best things an agent can offer in these times is peace of mind to help manage that risk.
While clouds may be imminent, and a storm predictably rough, it is also the start of what is to come, a new beginning. It's a proud time to be involved in the rural industry. We are still very much open for business and there is no doubt we are playing a major role, not only by feeding the nation but also in keeping the country trading and contributing much-needed GST to help run the country.
On a final note, a reminder to all up and coming young agents to think seriously in nominating for the 2020 ALPA ACM Agency Awards. It is a great opportunity to get recognition for your marketing prowess and innovative thinking in this great industry. Nominations close September 14.
- Andrew Wardle is a member of Australian Livestock and Property Agents Association (ALPA).
