mag
8-6-2005, 08:39 pm
With a large amount of cattle on feed in feedlots and the perceived price rises of feed grain this coming season once again the feedlotters are getting worried, as the price of feed grain increases the price of finishing the cattle will increase as well, and if they have singed up to a fixed price contract, they could end up losing money. One has be wonder why these people do not use a simple risk management strategy like putting in place forward contracts with local growers and or grain traders, you don't have to be a guru to do that surly, one has to question their ability to run a business if they are caught out like this, even blind reddy saw this coming ! And yes they have a drought but not every where, some parts of QLD, NSW and VIC are doing ok, as always they want to buy it on the cheap rather than pay market price.
Did you know a deligation approached the government in 2003 to pass legislation to stop farmers from exporting grains, the reason here was the grower got more money per ton than the feedlotters where prepared to pay at the time.
Perhaps they will once again import corn from the US like they did in 2003, as it is cheaper to import from another country that it is to ship grains, hay from one side of Australia to another. In 2003 we had over 15,000 MT of AH1 and AH2 hay in store, and it was cheaper to send it to Korea and Japan than it was to ship it to QLD and NSW however we did make $40.00 per ton more by exporting anyway.
and you may say gee he seams a bit miffed -
WELL YES IM MIFFED :mad:
Did you know a deligation approached the government in 2003 to pass legislation to stop farmers from exporting grains, the reason here was the grower got more money per ton than the feedlotters where prepared to pay at the time.
Perhaps they will once again import corn from the US like they did in 2003, as it is cheaper to import from another country that it is to ship grains, hay from one side of Australia to another. In 2003 we had over 15,000 MT of AH1 and AH2 hay in store, and it was cheaper to send it to Korea and Japan than it was to ship it to QLD and NSW however we did make $40.00 per ton more by exporting anyway.
and you may say gee he seams a bit miffed -
WELL YES IM MIFFED :mad: