Point in time – Every now and then there is a point in time that really means something. Whether you follow Rugby Union or not, the end of the game against Argentina was one of these. Wallabies captain Harry Wilson (son of Cameron, Elders Livestock Queensland) says he backed his team with a decision to turn down three consecutive chances at a penalty goal, going for the win not the draw.

Chris Howie

“Full credit to the team. We could have gone for goal and taken the draw. It was a tough game, but everyone believed we could finish the job”

How good to see this old fashioned, passionate approach we were all brought up believing Australians do, not the insipid lack of accountability prevalent today. Many an old time sports fan in city and country would be very proud. It really put the Wallabies back on the map. Well done.

Social oddity – I noted some articles the other day about meat theft concerns supermarkets are now having. Once upon a time we had checkout attendants who created the docket and were a barrier to high volume shop lifting.

Speaking to a supermarket executive a few years ago I asked what the point of the self-serve system was and how do you stop shop lifting. They told me “We expect to lose $200m but the staff savings are $400m”. Ok, that make sense. However, in retail there is also this thing called transfer pricing, which means moving the cost base to another area.

I’m wondering why the police, who are paid for by the taxpayer are now involved when this loss use to be stopped by the checkout attendant paid by the supermarket? And now that the mentioned $400m staff saving has now been banked what the strategy is for the ongoing $200m theft number.

Again, this is only the take of Chris using high school business economics and I expect there is a very simple answer.

EUDR (Deforestation regulations) –

Recent calls for EU producers to add the geolocation box to the NLIS system has now broadened. It has become evident that hide, skins, fellmongered wool and by-products are also captured under this requirement meaning all producers should add their geolocation to the NLIS system. Hides and leather for fashion and car seat manufacturing is a large volume export into the EU.

Domestic retailers are also starting to request this information as the consumer is expecting a higher level of providence for what they buy. It’s not that hard and simply means adding the location of the property to the PIC. Grab a stubby or a coffee and log into myMLA or ask your agent to help you. Sooner rather than later is the timeline.

Toppy prices –

Prices for backgrounding sheep and cattle are still right up in the stirrups. 40kg second-cross store lambs cracked $250 in Bendigo on Monday and well-bred weaners in NSW are consistently making $6 – $6.50.

This is not about talking the market down but having an awareness of the end price. Eventually we will see a run of new season lambs appear and the processor prices will soften. Available feed seems to be driving the backgrounding cattle also which we have seen before. Current grid prices do not correlate to creating a margin at these buying rates and we are already in spring with expectation supply and quality will increase.

Doing the sums is important because at this time of the year weight gain does not always provide the right price at the other end.

Around the traps….

Mick Laidlaw from StockCo SA took the opportunity to fly from William Creek over Lake Eyre to Birdsville. He said the Lake experience was fantastic but the feed in the Warburton, Cooper, Goyders Lagoon and Clifton Hills was exceptional. For those that enjoy wildflowers, rains in the North of SA this week will see them in mass.

Luke Nevins FP Nevins, Inglewood, Vic said recent rain backed off the Bendigo supply with the lamb market starting $20 – $30 cheaper. The prices recovered as the sale went on with quality suckers in relatively small numbers topping at $395. Store lambs were very well sought with one run topping at $250 and plenty of demand.

Clint Wardle West Coast Livestock, WA said sheep numbers are down significantly following the long running live export campaign. Hooks prices from processors are as high as ever seen in WA but needs to be considering the values in the eastern states. The quality of sale sheep will still be excellent and Clint noted the Kondinin sale scheduled for Thursday 25^th September is interfaced with A+ with a yarding target of 8000. I attended this sale 3 years ago and the quality of the sheep was outstanding.

Andrew Peadon, Andrew Peadon Agencies, Trangie noted Dubbo agents will hold their Spring Feature female sale on Friday 10 October. Large runs of Cows and Calves are expected as well as quality PTIC heifers and Cows. With the NSW season firing this sale is a real opportunity to capture buyer competition from near and far if you have some to sell.

Capital Livestock and Property, Hamilton Vic said they are still a long way from any lamb numbers. The Queen’s birthday weather definitely caused some lamb losses but overall numbers for late spring and summer won’t be down as far as first expected. The annual weaner sales will run as usual and even though cow numbers maybe back a bit, expectation are sale numbers and weights will be similar to every other year so set orders with confidence.

Paul Kilby, Kilby Stock and Station, Barossa and West Coast SA advised killable sucker lambs are few and far between in SA at this time. Most lambs are targeted at being shorn and fed or sold as stores. With the current prices for stores many are selling as soon as they are 30kg liveweight.

Scott Bremner Allied Marketing, Katherine NT. The unseasonal rains in May have extended the feed position a bit. The live export prices are just starting to move with high grade Brahman steers at $3.70 and heifers $3.40. XB are ranging from $3.20 – $3.40 with heifers tracking behind as normal. Exporters are indicating they have enough however enquiry is starting to build around availability.

Cyril Close, TopEx Roma said a yarding of 11,000 fronted on Tuesday with numbers continuing to come across all types and categories ranging from heavy well-conditioned to light stores. Feed position is good as rain continues to appear but also considerable wind. Cyril mentioned markets tend to soften at this time of year but so far are hanging on with demand still strong and maybe benefiting from the southern shortage, cows sold to a stronger demand. Cyril also noted the appearance of significant locust swarms in the West and Southwest of Queensland. From my experience this can destroy and ruin excellent feed overnight.

Ron Rutledge, Nutrien Vic / Riv said the season is slow for lambs with any volume still 4 – 6 weeks away. Expectation is any form of lamb number flush maybe short lived. Processor demand is strong across all species and saleyard prices are currently leading the hooks offering although there are some holes appearing during some auctions which vendors need to be wary of.

Jack Kelly, J&J Kelly Stock Agency, Warrnambool & fellow Geelong supporter, noted some opportunities appearing in his area to purchase cows and calves. Both of us agree the 2 for 1 deal is quite appealing if you have feed and they create value for money. Wintery cows may look a bit plain but quickly put weight on whilst creating value in the calf for the January demand.

A couple of new Stock and Station agencies have launched over the past 2 weeks in Victoria after parting ways from the corporate world. Victorian Livestock and Property in Yea and Capital Livestock and Property in Hamilton. Both companies are founded on considerable experience and have retained a significant client base leading into the spring. The Agency industry runs in cycles with new businesses starting and existing businesses become acquisition targets for larger companies. Word in the bush is there are still some changes to come and potentially a significant acquisition in the wind that will create a ripple and front bar chatter.

Cattle

Cattle for domestic supermarket supply has been short over the past couple of months with lots of phone calls being made. With the demand in the West for heavy store steers WA cattle are being purchased to feed in the East which is exposing the WA supply with store prices paid 20-40c/kg above WA rates. Speaking to another agent in NSW he said even if the price is $15, he wouldn’t have enough for a pie in the short term.

Grand final bull price – For a very long time the AFL grand final was the change point for processor bull pricing. With meat pies being eaten at every football game during the finals in the country and city. I think with the advent of the US market, dim sims, chips and gravy this impact may have waned but it still seems to be a relatively sound market trend point – give or take a couple of weeks.

Sheep

Mutton and lamb prices are starting to set the scene for ewe sales that are fast approaching. Some of the premier merino and 1st cross sale numbers will have been impacted by the season. With a significant number of breeders in the market looking to replace stock sold during the drought it is highly likely we will see some new records.

Couple of tips when selling ewes:

• Shear 1^st cross ewes 6 weeks before the sale – creates the best presentation.
• Make sure they are shorn well – shearing ridges and socks will cost you.
• DO NOT crutch over the tail or wig before sale, it makes the sheep look shorter.
• Drench and vaccinate – B12 gives them bright eyes and ears up.
• If a ram / stag has been in don’t hide it. At these prices you will end up in court.

Grass seed in sheep we have spoken of for years. With the advent of EID in sheep they are becoming more and more traceable. Key part is if lambs or sheep have seed let buyers know, whether saleyards or over the hooks. They will then make adjustments before hand not afterwards. Often it means processors realign your lambs to a different destination and offering an agreed price not a penalty. The other part is on farm. So many producers spend all year producing the best article to completely stuff it up when walking sheep to the yards. Paddocks are clean with no seed, but roads and laneways are not. Stop and think because it is too late afterwards.

Stud sales for rams and bulls seemed to have fallen into 2 categories. North was very good with demand set by season and prices. The South was a bit softer as many breeders had reduced females because of the season which in turn impacted required sires. It is becoming very evident in the sheep game that IMF will be the next big thing moving lamb from a commodity to a premium labelled product. Exactly what we saw with beef years ago. My advice is if you haven’t done so already start your IMF program now and gain first mover advantage – commercial and stud breeders.

Bush summit. I was in Ballarat the day of the bush summit but after attending it in SA last year and being disgusted with the attitude of Penny Wong decided not to go. Although Penny maybe a bit miffed that no tractors escorted her out of town. The question is how does the importance of the agricultural sector gain positive and meaningful time at a federal level that disseminates to the rural communities?

Swings and roundabouts. In times of short supply, high prices or high supply, low prices it is very easy for social grace to disappear from conversations. Whether it be agents, farmers, buyers or processors. Relationships are built through how we conduct ourselves which then turns into mutual respect. It is probably prudent to remember that some have very long memories and the industry has always been swings and roundabouts. Don’t burn relationships because of one season, they are very hard to get back when the tide turns.

Opportunities

• Cows and Calves
• Prepare ewes for sale – they are not a by product.
• If you can’t finish your lambs sell them as stores
• Grass seed – don’t get caught
• Careful of the spend – it doesn’t guarantee a profit.
• Adopt the Wallabies approach – harden up and have a go.
• Keep training all levels of staff.
• Selling or buying, get all the facts a small error can be a big dollar value.
• Looking for a team – Go Geelong!!

Chris Howie is a regular Beef Central and Sheep Central market columnist and the CEO of RMA.