The Perfect Storm – Weather Update

I published a post the other day explaining, among other things, how the trade sanctions placed on Australia by Russia will effect us. If you missed it, here it is.

This is an update.

Thankfully, our heifers are not destined for Russia this time. This means we don’t need to figure out what we have to do with them.

Sadly, another export company has a lot of heifers already in quarantine ready for shipment to Russia and as far as I can tell, forward contracts to honor.

Our buyer said not to expect a phone call from him for a while. He has different markets and can soak these heifers up.

Personally, I’m not that upset with this. I loose sleep and am prone to bursting into tears randomly for weeks every time we send heifers away.

But the impact on the whole dairy industry is still to be felt.

We also need to take into account what will happen to the beef industry, as this effects the value of our cull cows. Its of particular concern for us as the local abattoir is Russian certified (or whatever it needs to be to export to Russia). It is also another export destination closed. Already Brazil is ramping up production and making deals to fill the void. They can also supply grain and dairy products too. Thank you Colin Bettles for this link.

And my worry that the ARA’s will discover Australia exports’ dairy cattle is happening. I’ve thought for a while now dairy would be the next big thing for them to try to dismantle once the pig and chicken industries were destroyed. Could be happening earlier than I expected.

And I feel I should explain the WMP issue too.

The farm gate pricing is directly linked to World Milk Price. Its all business. A good blog on how our milk prices are decided can be found here. Marian is a great dairy advocate worth a follow too!

The lack of rain – still an issue!

Really, there isn’t much we can fix here! All we can do is weather the storm the best we can!

 

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