Market Supply Shifts: a discussion with National Sales Manager Dave Clothier

Episode Highlights:

• We are a country of extremes, with warmer temperatures and rainfall as high as 30% above average experienced recently across Queensland and New South Wales. Meanwhile, drier weather has intensified southward through Victoria, Tasmania, and South Australia, with Western Australia experiencing considerable drought.
• High temperatures are anticipated until the end of July. This will sustain pasture growth and provide security for graziers.
• Demand has still lifted considerably for all grades of fodder in expectation of colder weather.
• Beef cattle herds are at their highest since 2014, with excellent conditions and abundant feed driving up livestock numbers and boosting global exports, especially with US herd numbers low.
• Now more than ever, clients are more informed, asking for feed test results and making well-researched decisions, which is a positive development for the industry.
• The availability of quality hay is moving further south, increasing freight costs. It's wise to make informed decisions now to avoid higher freight charges in the future.
• Some growers are holding onto their product if they don’t need immediate cash flow, while others are negotiating to clear their sheds.
• Delivered prices remain similar to competitive price levels we saw last summer, but the benefit from lowered prices is offset by increased distance and freight costs in some regions.
• There is currently plenty of product available, but the approach of EOFY is a good time to secure feed while supplies are closer, reducing freight distance and costs.