DROUGHT across eastern Australia challenges all sectors on the land.
Grazing is the heart and soul of the community in areas such the New England which I call home.
While other industries are important, it is still first and foremost a grazing district. The dry times provides a range of challenges as the drought begins to tighten its grip.
Cattle producers continue to face challenges.
For most cattle producers, the first stage - the selloff of weaner and surplus dry cattle – is mostly complete. The next stage - pregnancy-testing and sale of empty or older cows - is well under way.
Fatteners and backgrounders are not exempt either.
All cattle are being sold lighter and cheaper than normal.
At least the lot feeding sector is operating and soaking up any store steers or heifers heavy enough to feed of suitable age. If only that oats crop had received another inch of rain!
Producers are ordering feed and starting full scale feeding, and asking themselves: “What do I feed, and more to the point what is available, and how long will it last and is it worthwhile?”
And the biggest challenge of all, they are asking how to manage cash flow and pay for the feed and or water expenses.
There’s also mixed challenges for the sheep industry
It’s encouraging to note how positive the sheep is at the moment.
Most sectors of the industry are very buoyant with the export lamb and mutton very strong with high demand for our product around the world.
Throw in the bullish wool market and we have a very exciting industry.
The wool job might have taken a long time to right itself, but better late than never.
Growers now know that the future is bright - but the drought is getting in the way.
At least sheep are saleable which has not always been the case in other droughts.
Sheep producers, including both lamb and wool growers, have hard decisions to make about feeding stock.
For the restocker sector, the problem is different: they are itching to increase their numbers, if only the season would allow expansion.
A lot of local producers have said to me that they are going to shear first and then off load.
But I’d offer a word of warning - it will be challenging to find homes for light condition sheep off the board with no rain – particularly if they are below 17 kilograms (carcase weight).
In New England, the winter is just starting to bite, and the cold will have its effect on livestock condition.
With a strong skin value it may be a time to take a good price in the wool and move on.
While the northern New England may have been one of the last areas to enter drought conditions, we could also be one of the last to exit these dry conditions.
On a positive note, as I write this article a substantial rain event is predicted throughout the eastern third of Australia.
I hope that as you are reading this article you have had worthwhile rain and that different challenges arise.
