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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

June and saw a slight spike as milk prices for 2016/17 were announced and Dairy Concessional Loan were made available.

Milk factories opening milk prices for 2016/17 range from $4.30 to $5.30.

Whilst the wet conditions are welcome and bring hope as the catchment storage volumes slowly improve.

On farm, pugging, limited feed and feed quality are additional issue that need to be dealt with. In general many farmers will be operating with milk prices below the price of production for 2016/17.

Cash flow budgets so far indicate that farmers will be significantly worse off in 12 months’ time assuming that they have the resources to continue that long.


Cropping/Sheep

The rain continues to feed optimism amongst croppers however the price outlook is not so positive.

Hay prices remain steady with limited supply & less active buyers in market perhaps due to pasture growth & tight cash flow

Wheat: -$5 ($275 to $285/mt).

Barley: -$5 ($230 to $240/mt).

Triticale: -$10 ($250 to $260/mt).

Canola Meal: Steady ($440 to $450/mt).

Excellent profits continue to be made with fat lambs. Those that decided to destock lambs and focus on crops will be very disappointed with their decision.

 

Beef

Cattle prices again rose during the month with the “perfect storm” of excellent rain, prospects of further good rains to come, a shortage of cattle and additional buyers from the north.

Many beef farmers have surplus feed and are faced with the dilemma of paying extremely high prices for additional cattle in the hope the prices remain high and the end result is profitable when they sell.

 

Irrigation

Storage levels in Lake Eildon are at 37% against 56% last year. 

Lake Hume is holding 42% (against 33% LY) and Dartmouth 47% (against 72%LY). source - GMW website.

The Murray system irrigators have a 1% allocation and Goulburn irrigators an 8% allocation announced on 1st July.

 

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