Interesting with all the big “Corporates” investing in low maintenance, big acreage properties in the North and in the West.

Amongst these are also Dubai based companies who are involved with the purchase of properties such as Tipperary and Litchfield. Property values in the Northern Territory have ranged between $5,000 to $10,600 per square kilometre bare, showing the demand, the likes of Tipperary are valued at $21,925 per square kilometre bare.

The overriding importance of return is now coming to the fore. The idea of properties surviving on Capital Growth alone is still quite prevalent, but they are also looking for a reasonable return. Reports are starting to show that maybe there could be a levelling out of large property prices in the future.

Or maybe the “big boys” know something about the cattle industry, especially pertaining too grass fed cattle, which we have not worked out yet.

Just back from the annual pilgrimage to Cooma this year, where the country resembled something that looked like a moonscape.

Anyone coming from Gloucester, their hearts would have to go out to the people south of Goulburn, who have endured this drought for such a long time.
Talking to one of the old locals, the thing that really hurt them was about a month ago, a large gully raker storm hit the area. This put some water in the dams, tore down creek blocks, but the worst effect was the washing away of the dry feed, which generally sustains the cattle to some extent over periods like this.

So this means that it is just bare dirt, and the cost of feeding is becoming prohibitive.

We have been offered more first calf heifers, which would have been generally kept by the owners as seed stock. Prices in general were probably $80 – $100 less than this time last year, with a large tail of small hungry calves in the 6,000 strong sale.

We managed to obtain good lines of heifers and steers for local clients, which with our season, will certainly go on and do the job.

Interesting to read this week about the growing opportunities for beef in the Middle East. Although they have been traditionally a buyer of sheep meat and live trade, it appears that the Saudi’s are starting to get a taste for our beef.

The strength of the Middle Eastern market appears to be underpinning further sales, as the financial crisis doesn’t appear to have affected them to the same degree as everyone else. Another interesting statistic to come out the area, is the age of the population, with 59% of them less than 24 years old.

With the Westernisation of this age group, it certainly makes for a major change in eating habits, with lots of promotional material available in both Arabic and English being made available by the MLA.

Maybe a bit more competition in the Beef Industry may stir prices.