Week Ending 11/10/19
Witnessed an exercise in forward planning at last Thursday's Cattle sale when one of our clients lashed out and purchased a tick under 100 young calves out of the sale.
The theory behind this exercise is that while the families calving will be well down due to the drought and the forced sale of many of their breeders, these calves will help boost their overall numbers.
The family envisage most of the calves being old enough to go straight onto pellet and hay with initially the input costs being relatively small.
The plan has been devised with the assistance of a professional nutritionist who suggests that once these calves are on the go it may be worth purchasing another batch of similar numbers.
ALSO MAKING NEWS: Quad bike roll-over protection to be compulsory on new models
The cost price of the calves was $74.00 and because of the size with a little bit of drafting they were loaded onto sheep decks.
These bobbies will not cost much to feed in the early days and may have a wider attraction to grazers trying to ensure a sales programme further drown the track when the drought finally comes to an end.
The world beef market is on a roller coaster ride at the moment with exports to most destinations on the rise. In a previous column we discussed the growth emanating from China, but other countries are also in the mix.
Beef exports in July rose 15 per cent to 114 965 tonnes which is the highest monthly export since our last major drought sell off in 2015.
The world beef market is on a roller coaster ride...
Japan imports rose by four per cent in July but year on year the volume is down by nine per cent at 169,000 tonnes.
Analyst suggest that beef stock held by Japan currently are very low and this country may be forced in the very near future to increase their buying activities.
In the case of the United States, Chinese demand for their product is strong that much is being taken away from their domestic base.
ALSO MAKING NEWS: Drought and HSC exam stress being felt by young people in Orange
In a strange quirk this has allowed our exporters to gain momentum with our plain cows to go into their grinding beef for the hamburger trade etc.
This has occurred to such an extent that we are currently up 10,000 tonne year on year. South Korea has been a small percentage while Indonesia has decreased by nine per cent as is the case with the European Union.
The Middle East has seen another surge in demand.
October, 10 Dubbo cattle sale saw an initial draw of 4200 head. Many good judges thought the yarding was top heavy with plain stock.
The pens of good well finished cattle with weight saw increased competition from a very large gallery of buyers.
READ BILL TATT'S PREVIOUS COLUMN HERE.