The Farmers Club Newsletter

Friday’s thinking and trends for the 15th of September 2023

By Dwain Duxson

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Non-Angus breeds come under the spotlight.

I found these comments interesting - - - The Weekly Times reported yesterday that "Steers were under 300c/kg and Heifers under 200c/kg in a tough Wodonga sale". One observer said, "while the market was tough for all, it was worse for Cattle that weren't right. If they are not right, then they are not getting competition, and if they are not Angus, then they are not right," he said. - - - Is this a sledge from an Angus breed aficionado, or is there some truth here? What are your thoughts on this?

New season Hay Bales about to hit the ground. What prices?

The first of the new season Hay bales are starting to hit the ground. Some Vetch Hay in the Northern Riverina will be pressed this weekend and has been listed at $350 a tonne. Yes, it's bold for someone to throw a price out there, but it's necessary. Think about it, unlike Wool, Meat, Grain, etc, Domestically sold Hay has no indicator or official price-setting mechanism. As we get more Hay coming onto the market and we get a taste of what sort of demand appetite is out there, then, and only then, do we get an idea of where prices will sit. Many different scenarios are at play, as outlined in the Farm Tender Hay Report here.

Merino Wool a best friend again

There has been a bit of Wool bashing going on over the years. But all of a sudden, Wool is now helping Merino breeders plug cash flow shortfalls in these tough times. 17-micron to 21-micron Wool is selling from 1750c/kg to 1300c/kg range, and although that is well down from the heady days a couple of years ago, it's still not too bad. And in times like these, where any sort of cash flow helps, I bet Merino breeders are glad they stuck tight.

Organics systems under pressure.

The original Farmers were organic Farmers, and it's arguably only since synthetic Fertilisers and Chemicals were introduced that Farmers have become non-organic. But I am seeing a trend away from organics as the premium prices these Farmers crave are just not there. Unless you have a vertically integrated system or Farm in Country where it's naturally organic, the profits just aren't there. Many organic Farmers will argue that it is viable, but I think people are voting with their feet. Lately, I have heard from 3 different Farmers who have given up on organics and gone down the conventional path. Rightly or wrongly, the market determines the outcomes, and at the end of the day, viability wins. Also, have you noticed the supermarket shelf space for organic produce getting smaller?

First week down. Thanks for your support.

It's been a big week, and I just discovered on the first day that I could add images, so I added the" Random and Associated Images" section. I think it will work, as I know some people are more visual, so it's more attractive to them. We had no trouble finding topics this week, and I hope that continues. This week, we will do 6 newsletters, one from the weekend, which will come out at 5 am Monday morning. Thanks very much for your support. I really appreciate it. I am happy to hear your feedback, good or indifferent.

End of message.

Dwain Duxson

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