Regional 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
The sale of Murray Goulburn Dairy to Saputo is still progressing, however a new discussion item is whether or not the Koroit processing plant will be retained or sold prior the Saputo acquisition. Conditional approval of the entire business model has been granted by ACCC, however there is still much to be discussed.
Unrest continues among MG shareholders and dairy farmers and may not dissipate until milk prices and share buy-back prices are ratified. For most of February, share prices hovered around eighty three cents, rising late in the month, however the announced return price was eighty cents.
With a very dry end to summer there has been an increased reliance on grain, silage and hay feeding. Drying off cows in readiness for autumn calving has begun. Less pasture is available in paddocks and fodder, water and pasture renovation expenses are impacting cashflow. Some clients are delaying paying creditors as a strategy for managing tightening cashflow.
Cropping/Sheep
Sowing season is approaching and paddock and machinery preparation has begun.
Indicative Vic Local Prices
Canola $477/t
Barley $217/t
Wheat $237/t
Meat and wool prices remain strong with only minor corrections occurring. Shearing has commenced in southern parts of the region with northern areas set to follow suit.
Beef
Prices continue to fall as pastures dry off. Shepparton fat cattle sale had some good quality Angus, however overall had a number of unfinished stock which is attributed to drier conditions and use of dry feed.
Horticulture
Fruit Growers Victoria has expressed concern that fruit is selling for less than the cost of production.
Irrigation
While water availability remains high, some price increases have occurred in response to the dry summer of 2017/2018.
