Hannaford Stock & Land » Over the Fence

Over the Fence – 19th August 2009

admin — Mon, 17 Aug 2009 06:41:03 +0000

The thing that has really worried most of us, in the primary production game, is the difference in price at “Farm Gate” and price at Supermarket level.
Even though we have had enquiries by the ACCC, into such staples as meat, fruit and vegetables, it seems that prices are still running at 3 times the inflation rate.
Within this investigation, there did not appear to be anything that was forcing these prices up. The huge disparity from gate to supermarket certainly has not been explained to us.

Maybe the argument that Australia has only the eleventh highest inflation rate for the year should make us feel better, or make sure we don’t move to those other ten countries.

The other stories, especially those in the fresh fruit game, who have been outspoken with major suppliers, and suffered huge downgrading of their product or lengthy settlement of their accounts, are fairly well known throughout the industry.

Without sounding too idealistic I don’t think any farmer expects more than a reasonable percentage of the profit all the way along the food chain. He is the one that has outlaid the money for the land, grown the produce and paid the wage and diesel bill. Maybe some of these enquiries could show a little bit more intestinal fortitude.

Over the Fence – 5th August 2009

admin — Tue, 04 Aug 2009 00:05:51 +0000

Great to see feeder prices starting to get up around some realistic value, but there is not a lot of assurance that the time span is going to be very long.
Once again, it is the supply and demand story where feeder calves are getting harder to source as mid winter approaches. The general thought is that we may get four to six weeks of reasonable prices but don’t hold your breath after that. So anyone with some handy calves still left in the paddock it is probably worth the enquiry.

As the bull sale season approaches, it is interesting to talk to a lot of the Commercial breeders about what they are looking for in their bulls now. The overriding factors are still the good basic points of sound structure, growth for age, feed conversion and bulls that are ready to go to work in Spring. We are very lucky with our local stud breeders, as the stock that they produce are quality bulls that are ready for business.

Regardless of all the performance credentials that are produced these days, and they are certainly a help in the selection process, the above practical features are still held as most important by our local cattlemen.

Over the Fence – 13th May 2009

admin — Wed, 13 May 2009 00:57:13 +0000

As we listen to all the doomsayers and the rhetoric from the Politicians it was with some amusement that one of our early morning breakfast programs tells us that the rural areas aren’t suffering the financial stress to the same degree as the big cities.

To a certain degree I think that this is true, as most people who live in rural towns have basically kept their belts tight and haven’t spent beyond their means, as a way of life. As the old saying in the bush goes “ you can always kill a beast, grow some veggies and get a feed” .

We in this town can certainly be very happy that we have some good ‘back bone’ industries that will sustain us over the coming years. It appears that even the experts are starting to back track on the severity for Australia of the ‘World Economic Crisis’.

I certainly think that there is still a great deal of money being made by some sectors of the beef industry using the WEC as an excuse, with the primary producers getting no or little benefit.

My biggest fear is the loss of good young farmers from the industry due to lack of opportunity.

Over the Fence for 29th April 2009

admin — Tue, 28 Apr 2009 06:55:34 +0000

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.

Over the Fence – 1st April 2009

admin — Wed, 01 Apr 2009 06:50:51 +0000

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.