Larraine Sathicq
A survey of Queensland cattle farmers has found an upswing in confidence about the coming 12 months.
The Rabobank survey found 28 per cent of the state’s producers expect the agricultural economy to improve this year, up from 19 per cent in the previous survey.
While 49 per cent of producers previously said they expected agribusiness conditions to worsen in the year ahead, that number has now dropped to just 13 per cent.
Ladybrook beef cattle farmer Sue Harrison said it was a bit too soon for optimism.
“Yes, we’ve got grass but we make money out of selling cattle and it you’re not getting good prices for them, what’s the point of selling them?
“We’re thinking, do we sell these cows or just keep them here?
“The market is really not good at the moment.”
Ms Harrison said recent rains were a help.
“But it’s like everything, you’ve got to keep getting rain,” she said.
“I think we’ve had eight millimetres in the last couple of months.. We’ve got enough grass to see us through the winter … but no one’s able to get much money for their animals so they won’t be selling them, they’ll be hanging onto them.”
Ms Harrison said the market did improve after the drought broke.
“They all said the price was going to stay up for a while but the bum fell out of it just as quick as it went up,” she said.
“So we got more money but it was short-lived. Meanwhile the cost of everything ,all your chemicals, anything you do on a farm costs a small fortune.”
Rabobank said rural confidence had been driven into negative territory over the past 18 months by concerns about rising input costs, heightened risk of foot and mouth disease (FMD), lumpy skin disease, falling commodity prices and El Niño forecasts and declarations.
They said Queensland’s beef producers were leading the upturn in sentiment with 85 per cent now expecting economic conditions to stay the same or improve in the year ahead.
More than half cited good seasonal conditions and rising commodity prices as the reasons for their optimistic outlook.
The survey showed producer angst around falling commodity prices fell from 53 per cent of these respondents last quarter, to 27 per cent this quarter.
Rabobank’s Southern Queensland regional manager Brad James said the regions had enjoyed a good summer for rainfall, with many dams and water storages by-washing (releasing water) and with full soil moisture levels in many districts.
“However, there are still areas of the state waiting for a break in the season,” he said.
Mr James said the survey’s findings of a recovery in beef producer’s confidence was not surprising, as cattle prices had been steadily improving over recent months.
“Overall, feedback from Queensland producers indicates that there is still a healthy appetite amongst many to continue to invest in the expansion and development of their businesses through both development of current holdings and expansion through additional property purchases,” he said.
The survey results released last month found 24 per cent of survey respondents were looking to increase investment in their agricultural enterprise (up from 20 per cent) and the number looking to decrease their investment had fallen from 24 per cent last quarter, to 11 per cent this quarter.
