The South Eastern Times : January 17th 2017
Put yourself in the game with quality • By Ian Turner of Superior Selections HUMAN nature produces strange outcomes at times. Years of ‘hanging in’ by beef producers when the weather gods were against them for the best part of a decade turned around in 2016. With the demographics of the Australian cattle population, once things turned around in the northern part of the country, there was always going to be a major lift in demand to restock. Suppressed prices, especially from northern beef flooding onto the domestic southern markets, have been completely reversed when that flow stopped and restocking demand started. Around 300 cents/kg in January • You can’t expect to produce sale topping young weaner cattle like these by purchasing cheaper and inferior quality breeding genetics. Put yourself in the game by investing in superior and higher performing genetics, and be prepared to pay a realistic price for them. 2014 had risen to just under 600 cents/ kg last January and later rising to over 700 cents in early spring and settling back at around 650 cents in December. MLA’s market information manager Ben Thomas has forecast supply to still be well behind demand in the next year before slowly increasing in the following years. Australia’s herd is currently estimated to be just over 26 million head which is the lowest for two decades. There is a serious supply and demand imbalance at present and despite what some predictions may indicate in relation to predicted softening of some global markets, Australian producers are well insulated because Business/Stud Allendale Arki Beeamma Banquet Angus Barry Maney Group Beachport Liquid Minerals Belmore Shorthorns Boonaroo Coolana Angus Crozier Charolais Morgiana Days Whiteface Diamond Poll Hereford Gambier Earth Movers Gambier Shooting Supplies Glatz’s Black Angus Glentanner Angus Goodnwindi Charolais Granite Ridge Green Triangle Finance and Leasing Harvey Norman Hazeldean Kerlson Pines and Oak Downs Lakeside Simmental Stud Limek Limousin McDonald’s Furniture and Bedding Melville Park Nampara Pastoral Company OGR Trucks Pathfinder Raymond Scott Ray White Keatley SA Beef Cattle Breeders Association Shorthorn Beef Southern Cross Simmental Sale Sterita Park Angus Trackside Meats Trevor Auld Drilling Tugulawa Warrawindi Warrensville Woonallee Simmentals Yerwal Estate 2 - The Border Watch Beef Focus 2017 Advert Page 20 Page 6 Page 15 Page 12 Page 31 Page 19 Page 24 Page 11 Page 24 Page 20 Page 10 Page 19 Page 31 Page 4 Page 30 Page 21 Page 29 Page 8 Page 28 Page 23 Page 8 Page 3 Page 21 Limestone Coast Combined Field Day Page 9 Lindsay Murray Greys Page 24 Page 17 Page 21 Page 30 Page 18 Editorial Page 24 Page 8 Page 29 Page 19 Page 8 Page 26 Page 6 Page 30 Page 30 Page 10 Page 31 Page 10 Page 21 Page 3 Page 29 Page 19 Page 16 Page 15 Page 3 Page 26 Page 23 Page 13 Page 26 Page 16 Page 23 Page 32 Page 5 Page 13 Page 27 Page 14 Page 7 Page 19 Page 30 Page 22 Page 16 Page 6 Page 25 Page 14 Page 26 Page 21 Page 13 Page 31 Page 13 Page 2 Page 15 706730 of that high internal demand. It is only when our breeding and production numbers increase sufficiently that there will be realignment with global trends, and that will take years, not months. Without saying, “I told you so,” anyone who bought in during 2015 would be reaping the big benefits now. However, that human nature I referred to at the beginning restricts a vast majority from taking a calculated punt, so most didn’t move until it became so obvious that the drought had broken, thus trying to increase numbers in a high demand time is expensive. The good news is the outlook. You haven’t missed the boat. If you buy and sell in the same market conditions, you get the return you need to not only remain viable, but also to be in a position to significantly increase your profits. Also, interest rates are low at present, so short term borrowings should be quite manageable. With higher prices, processors may get a bit jumpy and as is sometimes their want, they talk the market down. The bigger ones that dominate the markets are generally volume based marketers, so while they may like to increase their percentages with lower prices, it actually hurts them more if they lose throughput rather than profit share. That supply and demand situation tells me if anyone chooses to project a ‘glass half empty’ outlook, they are speaking with vested interest only, or are born pessimists. Optimism and positivity around an industry is far more productive and beneficial for all. Yet we still have producers who are scared off by the current prices and especially when it comes to bull markets. They want increased prices and when they come, all they see is increased costs rather than the increased income prospects. The big advantage at present is the prolonged drought weeded out a lot of the poorer quality stock, so finding good quality genetics right now is a lot easier. Bulls are a pretty vital part of a breeding program, so budgeting and trying to operate on 30 year old prices and consequently buying inferior quality genetics is not going to help anyone when trying to market the progeny. Saving a dollar or two on breeding stock is not clever if it means you lose far more when it comes to the sale of the progeny. Better genetics produce faster growing, higher quality and more profitable progeny - simple! So be optimistic, do your homework properly and most importantly put yourself in the game by purchasing the best quality you possibly can to match your production and market genetics. If you are going to win, you’ve got to be a serious player. Ladies are back at Woonallee 2017 sees the return of the special ‘Elite Ladies Sale’ into the Woonallee sale program of Simmental based genetics that excel on grass fed performance. The Baker family’s Woonallee Simmentals will be offering 40 registered females in a twilight 4.00pm sale on Wednesday, February 8. Both traditional and black females will be included, catering for the seedstock industry enquiry since their last such sale in 2014. “There will be a mix of ages, but predominantly young cattle representing all our latest successful bloodlines,” Tom Baker said. “Some will be PTIC to our top Woonallee sires, while young unjoined heifers will also feature,” he said. This will be a great supporting event for the feature sale, Woonallee’s 10th annual Elite Production bull sale the following day. 110 bulls will be on offer from 2.00pm on Thursday, February 9 when 40 traditional, 55 black and 15 SimAngus will go through the ring, catering for all beef programs and budgets. Woonallee ‘Ladykiller’(P) has literally swept everything before him in the last six months to dominate the show ring and while he is being retained, there is unprecedented depth of quality on offer right to the very end of the offering. Leading the offering is the very impressive traditional bull, Woonallee Los Angeles (P), while the black offering is led by Woonallee Lamborghini (P), a bull as smooth, impressive and powerful as his car namesake. The bulls and females look an absolute treat and in the great 2016 season they have been able to fully express their renowned genetic potential. Regular updates and full sale catalogues will be available on the Woonallee website at www. woonalleesimmentals.com. The stud’s field day for inspections will be on Tuesday, February 7 making for three action packed days in a row at Woonallee. • The selection policies and genetic selections in the Woonallee breeding program have a total commercial focus, enabling the Baker family to turn off young weaner cattle like these 10 month old heifers on a consistent basis, even in a tight spring and summer like 2015/16. These heifers showed exceptionally good growth off grass, selling to a top of $1370 on Auctions Plus.
January 12th 2017
January 19th 2017