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Regional 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

The Global Dairy trade index initially fell 2.9% on 15th March after a 1.4% rise on the 1st March.  The average Global Dairy price for March is 46% below the March 2014 average price and 20% below the March 2015 average price.

  • Milk prices have remained constant at $5.60 per kg milk solids and, based on recent Milk Factory announcements, will remain at this level. 
  • Cost of temporary water remains high
  • Farmers continue to balance feed and water costs
  • Recently a number of larger-scale dairy farms have sought the RFC Service
  • RFCs continue to report significant levels of unpaid creditors.

 

Cropping/Sheep

Croppers are preparing for the coming season’s crop, with pre-sowing activities currently being undertaken.  This is a significant decision time for many croppers as they weigh up the pros and cons of sowing dry or awaiting rain to sow.

Wheat and canola prices remain low, with current prices the lowest for 5 ½ years. Along with record international stock levels and a higher Aussie dollar the immediate outlook is not great.

 

Beef

Overgrazing issues are common in all regions, even in the productive valleys of the ranges and areas east of Holbrook. This is the result of a poor spring, overstocking, and a hot dry March. Currently there is plenty of fodder being fed out, dams are running very low in many areas, and stock is being sold.

Beef prices remain strong although continuing dry conditions are impacting prices for store cattle.

Prices are weakening for cattle that are being presented in poor condition due to feed supplies shrinking and fodder being rationed for possibly difficult months ahead.

Quality bred cattle still retain a premium.

 

Irrigation

Storage levels in Lake Eildon are at 33.5% against 58.3% last year. The Hume is holding 24.6% (against 22.3% LY) and Dartmouth 43.6% (against 77.3%LY).  GMW resources storage levels website.

GMW announced no increases in this year’s allocation for the Goulburn and Murray systems on 01/04/2016.

High reliability water share determinations remain at:

  • Murray system                     100%
  • Goulburn                             90%
  • Campaspe                           66%        (up 2%)
  • Loddon                                 84%        (up 4%)
  • Broken                                 26%

Low or Nil allocations for the opening of the 2016/17 seasons remain the likely outlook.

Water prices averaged $230 for March.  (Temp water), an increase of $20 from February.

High Reliability water shares have averaged $2,800 for March (no change). Low reliability shares traded for $220 up from $200 in February. (Refer Vic Water Register).

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.

AgBiz Group

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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