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blog rruRegional Round-up is a monthly newsletter providing an overview into the environmental and business conditions affecting farmers and rural businesses in the Goulburn Valley and North East Victoria.

Dairy

Farmers are now experiencing very dry conditions and are heavily reliant on fodder. Feed prices are expected to rise in response to dry conditions and speculation has begun about the possibility of drought.
Most dairy farmers have had a busy month sowing crops and irrigating. Many clients of the service expected their position to improve as the financial year progressed, however a dry summer and autumn and rising inputs have thwarted these expectations.
The Saputo acquisition of Murray Goulburn is now complete with the foreign review ruling signed on 18 April. Shareholders will receive a capital return payment of 80cents per share next month. There is considerable optimism around next year’s milk prices under the Saputo name.

Cropping/Sheep

In response to a lack of rainfall, farmers have been dry sowing crops. Some farmers have bought extra water to bring up fodder crops before the irrigation season ends. In response to this, water prices have risen sharply.
Those holding enough fodder to sell are expected to see good returns on sales in the wake of increased demand.

Fodder report (Goulburn/Murray Valley)

Grain                                           Hay

Canola meal      $400-$410/t           Lucerne       $230-$300/t

Maize              $295-$305/t           Pasture        $150-$180/t

Wheat             $295-$305/t           Cereal          $110

Barley             $290-$300/t           Straw           $90-$100/t

Sheep prices experienced a small drop however they remain largely static. Wool prices are at an all-time high at present.

Beef

Poor rainfall across most of eastern Australia has impacted the cattle market. There is a lack of quality cattle in markets with many heifers going to meat processors. Projections for 2018 slaughter numbers have increased and following this is an expectation of lower prices.
Shepparton numbers again increased. Numbers consisted of a large percentage of unfinished lighter weighted vealers. Processors are seeking well finished bullocks and young cattle. Both dairy and beef cow prices were cheaper. There was strong demand from grain feeders for vealers.

Horticulture

Fruit growers are reporting the current pear price is only marginally higher than the cost of picking and well below cost of production.

Irrigation

Cental Goulburn        March                           April

HRWS                $3,050-$3,150/ML          $3,150-$3,200/ML

LRWS                  $400-$420/ML                $450-$480/ML

Temporary trade    $114-$117/ML                 $165-$170/ML

 

Call 1300 834 775 to find out what assistance we may be able to provide you, or make an appointment with one of our experienced Rural Financial Counsellors.

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Contact Us

Rural Financial Counselling Service Victoria - North East.

Unit 1, Enterprise House

3 Stanley Street

Wodonga VIC 3689

PHONE: 1300 834 775

EMAIL: info@rfcsvicne.org.au

FAX: (02) 6100 6123