The Farmers Club

The “Club Notes” for Wednesday, the 3rd of July, 2024.

By Dwain Duxson

Do we keep creating an oversupply problem?

The drought breaks in March 2000 for Queensland and NSW, and we head into a good season for all the other states. The Cattle Herd and Sheep Flock numbers are down, and there is a lack of kill stock around. The grass is going nuts as the rains come, and Farmers are frantically buying to restore their Herds and Flocks. They are good trading conditions, and as it turned out, both industries boomed for 3 years. The drought was a forgotten bad memory, and our numbers keep building. We also are hearing that these record prices are the new normal. Our confidence is high as we keep getting licks of the ice cream every time we sell something. On-Property Bull and Ram sales reach levels we have never seen before. Then bang, we crash, the arse falls out of the markets, and those expensive animals we have either bought or bred have halved in value. All of a sudden, we have gone from an under-supply to an over-supply, and we now have a problem. Why does it always get to this point? Why can’t we, as either a Cattle or Sheep industry, keep things somewhere where between the under and over-supply levels? Why can’t we have an ongoing scorecard that tells us we are getting close to oversupply levels and that we all need to pull levers so that we can keep the margin in the game? Droughts do it for us. Why can we manage this ourselves? This is a simplistic look at it as there are many variables. I don’t know the answer, but if we could have our good times last longer, then most of us would be better off. Thoughts?????Reply to [email protected]

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