And this is certainly hurting some at the moment. Although there is definitely a mix of good and bad news out there. Consider commodity prices. According to ABARES weekly update from 30 August:
- The Eastern Market Indicator for Wool is up 32% on the same time last year at 2,279 Australian cents/kg clean
- The Eastern States Trade Lamb Indicator is up 36% on last year at 843 Australian cents/kg
- The Mutton Indicator in Victoria (18 – 24 kg, fat score 2 – 3) is 27% higher than last year
- The Eastern States Goat indicator is 24% higher than last year.
We hope this is providing relief to some of our farmers, but are well aware that 77% and 78% increases in feed Barley and Wheat prices are also in play. Further, the Australian Fodder Industry Association has recently reported Lucerne Hay prices as high as $600 per tonne and lower quality hays at $500 per tonne and higher.
We certainly feel for all the beef and dairy businesses. At the end of August, the Eastern Young Cattle Indicator was 14% lower than last year and Global Whole milk powder was trading 8% lower. However, farmers are known to be resilient, and as quoted by George Washington “agriculture is the most healthful, most useful and most noble employment of man”.
YBM wish all our farmers well.