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A “mountain of supply” – counting numbers in Australia’s livestock market

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Angus Gidley-Baird explaining the australian livestock market.
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A “mountain of supply” – counting numbers in Australia’s livestock market

 

Australia’s sheep, cattle and goat markets are being impacted by very high production numbers, compounded by already large volumes of meat in congested supply chains, according to agricultural analysts at Rabobank.

For the sheep sector particularly, there is effectively a “mountain of supply at the moment” following two “extremely good seasons” where plentiful rainfall and strong prices had seen a large rebuild of the national flock, RaboResearch associate analyst Edward McGeoch said in a recently-released podcast. And this supply is now flooding the market, with near-record volumes of lamb and sheep being ‘turned off’ for slaughter as drier seasonal conditions impact parts of the country.

It’s a similar story with goat, where historically-high numbers are also hitting the market.

And while cattle slaughter numbers have not reached the same near-record highs as sheep and goat, they had tracked 16 per cent up year-on-year for quarter two, RaboResearch senior animal proteins analyst Angus Gidley-Baird said in the podcast  ‘Counting the numbers in the livestock market’ .

At the same time, Rabobank said, there are already high inventories of meat in the system, which still need to be cleared from the supply chain.

Two key factors

Two key factors are impacting the livestock markets at the moment, Mr Gidley-Baird said.

“The first is the numbers of livestock that are out there – in particular we think the number of sheep has been underestimated – and what that means in terms of the volumes that we’ve got coming into the market,” he said.

“And the second is the volumes of stock already in the system. A lot of markets – particularly Asian markets – had bought up big through the end of last year and early this year, in the expectation of coming out of Covid and the recovery of food services and increased consumer expenditure. But a lot of those stocks have not been moved. The consumption recovery hasn’t eventuated due to poor economic growth, cost-of-living pressures leading to subdued consumer demand and lower-than-expected export growth.

“So processors at the moment have got this mountain of livestock coming at them, which is trying to be forced into a very congested supply chain.”

Angus Gidley-Baird explaining the australian livestock market.

RaboResearch senior animal protein analyst Angus Gidley-Baird

Sheepmeat

Rabobank says Australia is estimated to have its largest sheep inventory in almost 20 years in 2023, with expectations of record lamb slaughter this year and higher slaughter weights, while mutton slaughter numbers are also up 68 per cent for the first half of the year.

Mr McGeoch said quarter one 2023 sheep slaughter numbers were up 54 per cent on the previous year, while quarter two numbers were up 85 per cent year on year (75 per cent above the five-year average).

“So it’s a huge number – the highest quarter two slaughter number we’ve seen in over 20 years, when quarter two is traditionally the time of the year when Australia on average has its lowest sheep slaughter numbers,” he said.

Mr McGeoch said these numbers signalled the sheep market was not getting the “traditional break” that would occur between the two lambing seasons which allows the market to “reset and run itself out of a bit of supply”.

“So we’re going from last year’s lambs at very high numbers into new season lambs at high numbers and the market is not getting any respite,” he said.

Mr McGeoch said the high sheep numbers going to market in recent months had been exacerbated by the poorer seasonal conditions being seen in parts of the country – particularly in central to northern New South Wales.

“That said, these numbers of sheep are still not as high as what we saw hitting the market back in late 2018 and early 2019 when dry conditions were very severe,” he said.

Cattle

For cattle, Mr Gidley-Baird: “while there’s been an increase in year-on-year cattle slaughter numbers for quarter two, they’re not at those record high levels we’ve seen in sheep meat”.

“Although it’s still a way off where we were in 2018 and 2019, we have had the highest female Q2 slaughter numbers since 2020 (up 26 per cent year on year), which indicates that maybe we’ve moved through the whole herd-rebuild phase and producers are starting to make decisions about how many cattle they want on the ground at the moment,” he said.

But, Mr Gidley-Baird said, rather than cattle-herd numbers, it was high volumes of stock already in the system and lack of “capacity” among processors that was having the biggest influence on the beef market.

He said global protein inventory levels are very high at the moment.

“In Japan – one of our largest markets – ‘beef in storage’ figures are 18 per cent higher than the five-year average, albeit starting to level out,” he said.

“Congestion in the supply chain, with large amounts of stock already in inventory, is one of the main things holding up the system at the moment for the beef market. So if we start to see volumes move through the system a lot quicker, it will give processors a degree of relief that there is a home for their beef to go to and they’ll start adding extra shifts to increase capacity.”

Mr Gidley-Baird said factors such as the lead up to Chinese Lunar New Year in early 2024, as well as a contraction in US beef production and exports, give promise beef supplies may soon begin to move more quickly through the global supply chain.

For sheep, global demand will likely take longer to recover.

Though longer term, when global market demand returns, Australia will be well placed to service export demand for lamb and sheepmeat, Mr Gidley-Baird said.

“The way I am describing it is that it is a slighter brighter light at the end of a slightly shorter tunnel for the cattle industry compared to the sheep industry at the moment,” he said.

 

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BROADWATER FERRY

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BROADWATER FERRY

 

The history of Broadwater has largely revolved around the sugar mill. In 1863 Henry Cooke and Alexander McDonald became the first people to select land in the area. To begin with, sugar was grown and crushed on the small private farms in the region. The CSR opened the Broadwater Sugar Mill in 1880.

Broadwater is a small town in the Richmond Valley on the Richmond River. In 1978 CSR sold the mill to the newly formed New South Wales Sugar Milling Co-operative, which established its head office in Broadwater. Before Broadwater was named it was called “McDonald Town”.

In 1993 there was concern over the Red Azolla Weed that was infesting the Richmond and Wilsons River. The plant that was like a fern was dumped at the top reaches of the Wilsons River and the recent rain moved the infestation down river as far as Empire Vale.  This weed was playing havoc with the wire ropes that guided the ferry across the river. Every now and again the ferry would have to stop and clear the weed off the wire ropes.

Floodwater has always been a problem to Broadwater due to the local catchment low gradient floodplain. Filling up in Tuckean Swamp, was the result of Wilsons River breaking its banks at Tuckurimba and spreading out across the farmland. This floods the area across the river from Broadwater around Dungarubba and Bagotville.  Floodwater then flows downstream to Broadwater.

Hauling Cane by barge to the Broadwater Sugar Mill - 1965

Hauling Cane by barge to the Broadwater Sugar Mill – 1965

Richmond River Herald – 12/7/1912

At the last meeting of the Tintenbar Shire Council they were setting out the estimated cost of establishing and maintaining – a ferry at Broadwater.

  • Hand -geared punt – 28 feet by 12 feet – £250
  • Wire Rope – £50
  • Piles for guide – £50
  • Ferry Boat – £18
  • Incidentals – £18
  • Total – £368

Cr. Whipps suggested that Gundurimba Shire be asked to go in with a share of the coast as it is on the boundary of two councils. The approaches to the ferry were causing a little concern as they would continually silt up, even after dredging.

For years a bridge was discussed. Then in 2001 their dreams come true. With help of $500,000 over ten years toward the cost from Lismore City Council (on the north side) and Richmond Valley Council (on the south side) kicked in $250,000 each on top of the $1,4m from the Federal Government. Coincidentally, the bridge was officially opened the day the NSW sugar cane harvest started. The bridge’s centre span lifts to allow high-mastered craft through.

Deputy Prime Minister Mr John Anderson, Mr Ian Causley, Mayor of Lismore Mr Bob Gates and Mayor of Richmond Valley Council Mr Col Sullivan at the Opening of Broadwater Bridge - 13 - 6 2001

Deputy Prime Minister Mr John Anderson, Mr Ian Causley, Mayor of Lismore Mr Bob Gates and Mayor of Richmond Valley Council Mr Col Sullivan at the Opening of Broadwater Bridge – 13 – 6 2001

Deputy Prime Minister and Minster for Transport, John Anderson, cut the ribbon and unveiled the plaque to link the northern and southern sides of the Richmond River with a $3,000,000 structure, replacing a six-car ferry. It was a proud day for Co-operative chairman, Jim Sneesby, as he stood in the middle of the six-span structure and only a couple of kilometres from his own cane farm.

A very proud man on that day 3rd June 2001, was 102 years old, Peter Bolton from Broadwater. Peter was a special guest. He remembered those early days of the ferry when it had to be winched across the river. He had lived in Broadwater all his life.

Now with the new highway stretching along the New South Wales Coast another bridge has surfaced. It is 980 metres long and the second longest bridge built as part of the Woolgoolga to Ballina upgrade.

Memories:

Bert Sneesby: The following account by the Late Bert Sneesby of his memories of the Broadwater Ferry was provided by his daughter, Evelyn Wunch – 1/1/1982.

“When I first crossed the Richmond River at Broadwater on the Broadwater ferry, it was a very small one worked by hand. I came with my parents, brothers and sisters to reside on a cane farm my father had acquired in 1904 from Tucabia on the Clarence River. I resided there and worked until I retired in 1970 at the age of 76 years.

The ferry was operated on a toll system, one penny for a foot passenger, threepence for a horse and rider and sixpence for a two wheeled vehicle. Schoolchildren were free. A rowing boat was provided for foot passengers. There were no set hours, it was a 24 hour a day job.

After a few years tenders were called for working the ferry and the successful tenderer received 11 pounds per month. Later in years a small engine was installed on the ferry which made it a lot easier. Although the engine would not always do the work, then it was back to the old handle. I have been on the ferry when there was a full load and a heavy north easterly wind blowing, the waves would then break over the ferry to a depth of six inches.

When they were cleaning the water hyacinth out of the river, many a time I have had to use a cane knife to cut it off the wire and sometimes an axe was used to cut away willow branches. Around 1927 the ferry sank and was not replaced for three weeks. In 1953 a large new ferry was constructed and went into commission with Mr E. Patch as the ferryman.

During the big flood of February 1954, the ferry ropes were not disconnected in time and the wire anchorage was pulled from the approach leaving the ferry swinging against the mangroves on the eastern side of the river until the flood recede”.

Broadwater Bridge on Opening Day 13/6/2001

Broadwater Bridge on Opening Day 13/6/2001

Robert Maxwell: I can remember the time when the Nation stopped to view the America’s Cup. This was in September 1983. I was travelling across the Broadwater ferry with my workmates from the Broadwater Sugar Mill, Ray Hunt and Bruce McCaughey when the Ferrymaster had his trusty TV going. Even though the ferry always had a knock in the engine where this played up with the reception, we did see it all happen.

Jennifer Sauer: Our Dad, Col Sauer, worked on the Broadwater ferry. I remember fishing off the Broadwater ferry and catching many a flathead. Also recall our mother showing us where they sank the Bagotville ferry. This ferry can still be seen at low tide.

Bert Plenkovich: Way back in those early days I was in a dance band with Bruce Nicholas and Vin McGuire where we would be employed to play at the dances in the local halls around the district. Those nights when the ferrymaster knew I was out he would have the ferry waiting for me in those early hours of the morning.

Ferrymen: Fred Harwood (who was in charge for 20 years), Mr Adams, Dave Adams, Steve Haurigan,  V. Rogers, Frank Williams Richard Eyles, Barny Hyde, Stan Rose, Bill Davis, Laurie Clifford, Barry Watts, Gordan Smith, Steve Corrigan, Tom Rose, Alan Collis, Cameron Mackie, Clive Dawmah, Jack Roberts, Mr S. Stevens, R. Dixon, W. Grill, A. Davis, E. Patch, S. Williams, Clarrie Davis, Vic Davis,  H. McLaren, Col Sauer and Warren Robinson.

Bagotville Ferry: Two Ferrymen that missed out from story, were Jack Robinson and Bert Peterson.

Broadwater School Children at the Opening of Broadwater Bridge 13 - 6 - 2001

Broadwater School Children at the Opening of Broadwater Bridge 13 – 6 – 2001

Ref: Northern Star, Queensland Country Life, Ron Gittoes from Broadwater, Bert Plenkovich from Broadwater, Terry McKeough and Jeff Monti both from Rileys Hill, Ray Hunt from Tuckurimba.

 

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Government adds to cost of living as buybacks begin

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Government adds to cost of living as buybacks begin

 

Regional communities are bracing themselves for the worst as the Federal Government opens its cheque book for Murray-Darling Basin buybacks tomorrow.

National Farmers’ Federation Water Committee Chair Malcolm Holm said while families, farmers and businesses had been dreading this day, all Australians should be worried.

“It’s not just regional communities who’ve warned against the disastrous consequences of buybacks, the ACCC and ABARES have also cautioned buybacks will drive up the cost of water.

“The Murray-Darling Basin is essential to feeding Australia, producing 40% of our food and fibre.

“It’s basic economics. Higher water costs will drive up the cost of food at a time when the cost of living is hurting Australian families.”

Mr Holm also pointed to the May Federal Budget which didn’t disclose the figure for buybacks.

“It’s incredibly concerning the government isn’t being transparent about what this is going to cost taxpayers.

“Essentially taxpayers will be hit twice – first bankrolling the Government’s spending spree, then paying the price of inflation at the supermarket checkout.”

Mr Holm urged farmers and other entitlements holders thinking about selling their water to the Government to carefully consider the impacts, especially on communities.

“Minister Plibersek has set aside $300 million for community support, but we don’t know how that will be spent or what accountability there will be to ensure these communities aren’t decimated.

“This is yet another example of the devil-may-care attitude from the Government on buybacks and its complete lack of understanding about the detrimental impact they have on cost of living and communities.”

Community impacts

In the formal decision to instigate buybacks, the Minister for Environment and Water Tanya Plibersek said she had “considered the social and economic impact on communities in the Murray-Darling Basin”.

“What does ‘considered’ even mean? I consider whether I will have Weetbix or toast for breakfast,” Mr Holm said.

“When you look at the history of buybacks and the damage they’ve brought to communities and people’s livelihoods, ‘considered’ does not pass muster.

“This pain will reverberate across these communities from the farmers facing increased water costs through to the businesses in these towns who rely on the agricultural sector to support jobs, sporting clubs and schools.

“These communities deserve a robust and transparent process, but where is the evidence of that?”

Look beyond water

A key finding in the “Basin Plan Review – early insights paper” – released in June by the Government and Murray-Darling Basin Authority – demonstrates the need to look beyond “just add water”.

“The Government needs to move past the mindset that adding more water will fix the environment,” Mr Holm said.

“Rather than jeopardising communities and agricultural production with buybacks, the Government should focus on improving water quality, riparian and floodplain management, and pest control. These are all vital to improving river health.”

 

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Farm Safety Shouldn’t Cost an Arm or a Leg

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Farm Safety Shouldn’t Cost an Arm or a Leg

 

In recognition of National Farm Safety Week, SafeWork NSW is urging the state’s 81,000 agricultural workers to prioritize safety, adopting the mantra: work the safe way or ‘no way.’

The statistics are alarming. In 2013, there were 149 reported safety incidents in the agriculture industry in NSW. By 2022, this number had more than doubled to 358 incidents.

Since 2022, there have been 34 fatalities in the agriculture industry in NSW, with at least 10 involving quad bikes, motorbikes, or side-by-side vehicles. Notable incidents include:

  • January 8, Goohli: A side-by-side vehicle with an adult driver and two child passengers rolled into a dam while mustering cattle, resulting in the death of one child.
  • January 31, Narromine: A 51-year-old man died after being ejected from a moving side-by-side vehicle on a cotton farm.
  • February 1, east of Tibooburra: A 32-year-old female contractor was killed when thrown from a motorbike.

Tractors, quad bikes, side-by-side vehicles, and machinery account for most farm-related fatalities. However, incidents involving auger intakes and harvesting machinery also pose significant risks. For example, in May this year, a worker lost four fingers and part of his thumb while performing maintenance on an auger after removing its guard while it was still in drive.

SafeWork NSW offers a free advisory service to help farmers develop action plans addressing safety issues. This service qualifies them for a $1000 safety rebate for farm improvements.

SafeWork NSW emphasises the importance of adopting safe practices, including:

  • Prohibiting children under 16 from operating adult-sized quad bikes.
  • Mandating helmet use on quad bikes and side-by-side vehicles.
  • Preventing side-by-side vehicles from being used for joyrides and ensuring passengers wear helmets and seatbelts, avoiding rides in the rear cargo tray.
  • Guarding machinery, augers, and other equipment.
  • Ensuring proper separation of people, products, mobile plants, and equipment during the loading and unloading of livestock, bulk goods, hay, and grain.

For more farm safety resources, visit SafeWork NSW.

Quotes attributable to Head of SafeWork NSW, Trent Curtin:

“The agriculture sector accounts for one-in-five workplace deaths in NSW every year. Business owners must ensure their workplaces are safe. It’s crucial to maintain your plant and equipment, consult with your workers about safety, and ensure they have the right gear to do the job safely. This Farm Safety Week, we emphasise that farming work must be done safely so that our workers return home each day. Remember, it’s the safe way or no way.”

 

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