It’s Fodder Time!
The dry start to the year, particularly across regional and rural New South Wales, has produced a spike in enquiry for quality Victorian #grazing and #fodder producing country.
As an alternative to selling cattle at a discount through New South Wales markets it seems northern states cattle producers are now exploring the cost-benefit of purchasing southern states grazing and fodder country as a means to keep stock. Anecdotally our Victorian Ray White Rural network are fielding calls from northern states cattle producers looking to acquire grazing country in reliable rainfall areas, or country with access to bore or irrigation licences.
The motivation for New South Wales cattle farmers to consider the purchase of Victorian grazing country was made very clear in an article written by Lyndal Reading and Jenny Kelly of the Weekly Times on 6th of June 2018. The articled titled ‘NSW throughputs skyrocket’ (which can be read online by clicking here) points to significant sell off of stock as the dry conditions in Australia’s north bite.
The article compares 2017 and 2018 Autumn prime cattle throughput across 6 New South Wales selling centres, specifically Dubbo, Forbes, Wagga Wagga, Tamworth, Carcoar and Yass. With the Autumn of 2018 producing little or no rain many producers opted to sell their cattle to reduce stocking rates. As a result the National Livestock Reporting Service indicated a total of 256,832 cattle sold through these 6 selling centres across March through May 2018.
This was an increase of 102,578 cattle sold (up 66.4%) when compared to the same period in 2017.
The volume of cattle being sold through all markets and lack of producers in a position to buy and agist cattle has resulted in weaker cattle prices.
The beneficiaries of the dry start to the year include:
- Vendors selling southern states grazing and fodder country (greater buyer competition for quality property)
- Fodder producers (supplying livestock producers with feed)
- Transport companies (trucking fodder north and cattle south)
- Abattoirs (lower cattle prices)
- Consumers (lower prices for meat)
‘Paringa’ is a 1406.32* acre grazing and fodder producing property in Gippsland. Take a look by >> clicking here.