As Australian farmers struggle through a dry season, one of the Valley’s most experienced cattle men has never seen the market as healthy as it has been over the last year.
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“It doesn’t happen very often that we get these seasons,” Buckajo cattle farmer Bruce Blackley said.
“We’ve had some good seasons over the last three to four years, but it rarely coincides with a good cattle price.”
Mr Blackley has been in the cattle business for 45 years and has experienced the highs and lows of a fluctuating market and devastating droughts.
“I don’t know how people have survived,” he said.
“Back two years ago the price of cattle was pitiful and nobody had any money to spend to improve things.
“Fertiliser use went out the window and weeds took over.”
Mr Blackley said that after the droughts of last decade brought many farmers to their knees, the price of a lot of cattle doubled over a period of four to five months in 2015.
“Everyone was taken by surprise, it was incredible,” he said.
“Cows worth $600 18 months ago are now selling for about $1200.”
One example of the price jump can be seen in Angus steers from 300 to 500 kilograms rising from $2.10 a kilogram in January last year to $3.68 in October.
“It is a completely different scene now,” Mr Blackley said.
One reason he gave for the rise in price was a fall in North American cattle inventory.
“One thing I think is affecting the price is ethanol production is pushing American grain into those areas as they try to become more self sufficient,” Mr Blackley said.
Mr Blackley said the current market is reminiscent of forty years ago, before the oil crisis of 1973.
“The industry was going pretty well in the early 1970s before it crashed completely,” he said.
“What happened was fertilizer went from $30 a tonne in the early 70s and by 1975 it went to $75 after the crisis.
“The market crashed for cattle and the price of superphosphate went up 250 percent.
“People just couldn’t afford fertilizer.”
So what is predicted for the 2016 year ahead?
“They’re saying the price might ease this year as the US builds its inventory and demand for meat in China grows,” he said.
“The beauty about this great weather we’ve been having is it gives you more optimism for the future.”
In a business ruled by market confidence this can only be a good thing for the area’s cattle farmers.
