F E A T U R E D

TOM'S MARKET MUSTER:

The MLA Eastern Young Cattle Indicator closed off on February 20 at 669c, up 5% from last Friday. On the sheep front, the MLA Mutton indicator held its ground throughout the week, closing off at 370c, down 4c from last Friday. There is a mix of seasons in Eastern Australia, with reports of a dry season for Western and Southern Queensland, New South Wales, and Western Victoria. However, solid rainfall throughout large portions of the Central West of New South Wales, the Downs region in Queensland, as well as Central and Eastern Victoria has boosted coverage heading into Autumn. 

Recent rainfall includes 27mm in Mitchell; 8mm in Injune, QLD; 27mm in Longreach, QLD; 20mm in Condobolin, NSW; 31mm in Wee Waa; 28mm in Tumbarumba; 11mm in Yea, VIC; and 31mm in Orbost, VIC. Early reports from saleyards this week indicate a strong rise across most markets.

Steer and heifer gap widening

The monthly average gap between steers and heifers has remained over 75c/kg lwt so far in 2025. Comparing the variance between the MLA National Yearling Steer and Heifer Indicators, the month of January averaged 77c, whilst two weeks into February, the month is averaging 79c. Across 2023 and 2024, the narrowest the gap reached was January 2023 at 55c. 

For Australian beef producers, this signals that traders are active in the market looking for steers and/or there has not been a significant drop in number of heifers being offered onto the market to drive up heifer prices. Over the past five years, the lowest the monthly average gap got to was November 2020 when it fell to 23c, This was a point in time when much of Eastern Australia was out of the 2016-2019 drought, and Australia was in a rebuild phase. I believe that this gap will narrow leading into Winter as the supply of beef tightens and overseas markets demand more.

Female Slaughter Rate averaged 51% in 2024

The Australian Bureau of Statistics (ABS) has released its December 2024 quarterly figures to close off the calendar year. This has brought to light a few key highlights:

1. 2024 was the largest cow and heifer slaughter since 2019

2. 2024 saw the Female Slaughter Rate over the 47% mark for the entire year.

3. This is the highest annual Female Slaughter Rate since 2020.

From an Australian beef producers' perspective, Australia has experienced extremely high cattle slaughter in 2024, underpinned by strong global demand. The high female slaughter rate, I believe, is being driven by strong processor cow prices. However, high female cattle slaughter cannot be undone - lower production numbers of calves will be felt in Spring and Summer of 2025.

Brazil overtakes USA in cattle slaughter

For only the 5th time in 28 years has the Brazilian cattle slaughter overtaken the US. Reviewing USDA (USA) and IBGE (Brazil) figures shows that 2024 ended with 31.8M and 39.1M head slaughtered, respectively, for the calendar year.

To note, 2023 saw Brazil also take the crown with 34M slaughtered, higher than the US's 32 M. This information tells a tale of two cities - or more correctly, countries. The US is working off a historically small cattle supply, which is well documented. Whilst the Brazilians are taking every opportunity to supply beef where the US cannot. They are currently riding the wave of opportunity and exporting beef at a record pace. What this means for Australia is that we are set to benefit once the Americans and Brazilians run out of cattle (which could take another 1-2 years). The Brazilians cannot have two near-record years of slaughter back-to-back and still produce the level of beef they have been.

Sheep slaughter highest in 18 years

The ABS also released sheep and lamb slaughter for the December quarter this week. Sheep slaughter rounded out 2024 at 11M head - the highest since 2006. There are two key highlights: strong mutton demand internationally, seeing graziers offload excess ewes and weathers, and a reduction in the Australian sheep flock as some producers exit the sheep industry.

For lamb producers, the largest sheep slaughter in 18 years means there is set to be a tightening of lambs for Spring 2025. Provided prices don't rocket sky high throughout 2025, lamb feeders are in the box seat to take advantage of a low supply and feed a global population that is looking for an alternative to beef.

Source: AuctionsPlus, Australian BoM, Australian Bureau of Statistics, MLA, USA, IBGE.

Tom Rookyard is the General Manager at Ottley Livestock Finance. Many thanks!

Kubota’s GL9000 generator keeps the Kangaroo Island Brewery powering along Mike Holden’s a self-starter if ever there was one. When his partner, Nina, got her dream job working with Kangaroo Island’s amazing wildlife, he’d go over on the weekends to visit her. A builder by trade, Mike soon fell into some work on the island and made a lot of great local connections. Kangaroo Island started to feel more and more like home.

“It was immediately apparent to me that it was a such a beautiful place, filled with natural wonders, beautiful people and a friendly atmosphere,” he explains.“It just felt right that we move here.” 

So, they packed up their life in McLaren Vale, took their eight-year-old kelpie, Leela, and got on a boat to Kangaroo Island. The rest is history.

Mike believes the island provides unique opportunities for people willing to have a go. “If you have a good idea and a keenness to do something, then this island will reward you,” he says. “That really encompasses the entire vibe of the place – come here with a smile on your face, a willingness to adapt and do something, and you’ll make it work.”

In fact, Mike and Nina are living proof that’s true. A couple of years ago, they were having a cold one down at the pub when a great idea dawned on them.

“We were wondering why there wasn’t a microbrewery here on Kangaroo Island,” Mike remembers. “Then we looked at each other and said, why don’t we have a stab at it?” And that’s how Kangaroo Island Brewery’s story began.

Start of something new

Building a new life by hand, Mike and Nina bought a block of land – basically a bare paddock – and set about building their dream. It wasn’t easy by a long stretch – because of the island’s remoteness, everything had to be built using their own hands.

“Everything comes over on a boat; you can’t just go to a hardware store,” Mike says. “You have to have forethought, planning, and design. Most of the time, you’re repurposing and rethinking new ways of doing things with what you have at hand.”

In a place like Kangaroo Island, there’s no rulebook to follow. A microbrewery hadn’t been done there before, so Mike and Nina had to work it out as they went along, like putting together a mammoth jigsaw puzzle.

“Most of the brewery structure uses local reclaimed materials,” Mike says. “We even poured the concrete slab by hand ourselves – both to save money and because there was no other way to get it done.”

But Mike relishes a challenge, so he wouldn’t have it any other way. “I couldn’t do normal,” he declares with a smile. And that’s precisely why Kangaroo Island has welcomed Nina and Mike with open arms.

“Being here really gives you an appreciation of what this place is about,” he says. “There’s a feeling here of things being hard fought for. People work twice as hard to be here. The island was supposed to be South Australia’s first settlement, but it didn’t quite fit, and most people left,” he adds. “But those who stayed are hard-wearing people. Being part of that makes you feel really good, really special.”

Power up

The final piece of the Kangaroo Island Brewery puzzle was power. Entirely off grid, the site had no connection to mains water or electricity, so Mike and Nina sourced a cheap generator from the mainland to get them going. It soon caused them nothing but grief.

“I quickly learned the most important thing in brewing is consistency. You can’t have a hot tin shed and warm beer,” Mike explains. “And because we were entirely off grid for the first nine months, we were reliant on the generator to keep the beer at an even temperature.”

However, the generator kept breaking down, making the task of brewing impossible. Frustrated, Mike eventually tied it to his ute and dragged it off to a corner of the property where it still sits to this day, rusting away.

He had to go back to the drawing board with the generator. After doing some research, he learned Kubota had a reputation for reliability. After speaking to Jason Evans at CD Power, he also discovered the Kubota GL9000 was quiet, efficient, and exceptional value for money – in short, everything he needed to make the fledgling brewery a success.

But the real kicker was when Jason told him how easy the generator would be to service. “I had beer to brew and didn’t want to be tied up servicing a generator,” Mike says. “When I saw it had single-sided servicing, I knew a Kubota was exactly what we needed."

A powerful choice made easy

Mike chose a two-pole, silent-type, direct-coupled, single-phase diesel generator with a capacity of 8kVA at 3000 RPM. The Kubota GL9000 is compact, thanks to the direct coupling of its engine to the alternator.

Quiet operation is achieved through the engineering of an over-sized fan with a built-in muffler, longer air-cleaner hose, and improved inlet vent design. It’s also got a large capacity 28L fuel tank, so Mike only needs to change the oil at 200-hour intervals – giving him more time to spend on perfecting his brew.

RELATED: New diesel generators by Kubota

Mike is thrilled with it and commends the service CD Power has provided.

“They’ve really delivered royal service – when I need to service parts, I just call Jason, and within 24 hours, I’ve got what I need,” he says.

“When I needed some help setting up auto start-up, I got on the phone to CD Power. It’s just too easy!”

“Initially, the Kubota was our only source of power, and as the brewery grew, so did our power requirements. But it handled everything that was thrown at it and more,” Mike says.

“In fact, it was the lynchpin to our early success. It ran 12 hours a day – every day – and didn’t skip a beat.”

Now, the GL9000 provides a backup to the brewery’s solar power – ready and able when it’s needed most. “When there’s been issues with the solar, the auto-start kicks in, and I just keep brewing,” Mike says. “It delivers real peace of mind – I always know I can hook up the generator and have enough power until the solar power is up and running again.”

The GL9000 has been running now for 2500 hours over 18 months. Mike’s pushed it hard and says it hasn’t buckled once.

“My confidence in the Kubota is like nothing else on the property. I never have to worry about it,” he says.

“It provides perfect, continuous power, and that’s worth its weight in gold.”

The Australian farming landscape is constantly evolving. Seasons shift, markets fluctuate, and farmers adapt to new challenges. One of the biggest recent changes hasn’t been in the fields—it’s been in finance.

For generations, farmers relied on traditional lenders, navigating slow processes and rigid structures that didn’t always align with the unique cycles of agriculture. But today, financing is shifting, offering more flexible options that meet the demands of modern farming.

Agricultural Lending on the Rise

In the past year, agricultural lending in Australia has continued to grow, driven by land acquisitions, expansion, and rising property values. Farmers are leveraging their equity to invest in machinery, infrastructure, and sustainable practices, ensuring long-term growth. However, securing the right finance remains a challenge, as fluctuating weather patterns and unpredictable market conditions impact cash flow and repayment capacity.

The Need for Flexible Finance

Farming isn’t like other industries. Revenue comes in cycles, dictated by the seasons and commodity prices. This means rigid repayment schedules and complex loan requirements can create unnecessary stress. Lenders and brokers who understand these challenges provide real solutions—structured repayments that align with harvest cycles, quick approvals when unexpected costs arise, and finance tailored to the specific needs of farming businesses.

Rev Finance works with farmers to navigate these challenges, helping them access funding solutions suited to their business cycles. Understanding the nature of agriculture, they help structure finance in a way that supports long-term sustainability and growth without unnecessary pressure.

A Future of Smarter Agricultural Finance

As the industry continues to change, access to finance will be key to innovation and sustainability in agriculture. The right lending solutions will allow farmers to invest in technology, upgrade equipment, and secure their futures without the delays and barriers of outdated systems.

For farmers, it’s not just about securing a loan—it’s about working with a broker or lender who understands the realities of agriculture and supports their growth. With the right financial tools, the future of Australian farming looks stronger than ever.

WEEKLY AUCTION DATES – 2025

 1.) 7^th March 2025 , 2.) 21^th March 2025

Ag Machinery

EXPLORE AUSTRALIA’S TOP AGRICULTURAL EVENTS AND DESTINATIONS FOR FARMERS IN 2025

Where: Lardner Park, Lardner VIC

When: Thursday 27 – Saturday 29 March 2025

Farm World is one of Victoria’s largest and most celebrated agricultural events, held annually at Lardner Park. It attracts over 55,000 visitors and features more than 800 exhibitors across a range of industries, making it a must-attend event for those in the agricultural sector. With more than 100 acres of exhibits, Farm World is the perfect platform for farmers, industry professionals, and rural enthusiasts to discover the latest products and technologies.

Ideal For:
Farmers, agricultural professionals, families, and lifestyle enthusiasts looking for innovative agricultural equipment, hands-on demonstrations, and rural lifestyle products.

Key Attractions:

• Live Demonstrations: Experience hands-on demonstrations of farming equipment, with zones dedicated to lifestyle machinery as well as large-scale tractors and tillage equipment.

• Cattle Corner and Livestock Exhibits: Get up close with livestock breeders and explore a variety of cattle breeds. Other animal highlights include alpacas and working dog demonstrations.

• Farm World Rodeo: A family favourite, the rodeo is a thrilling evening event with live entertainment, promising excitement for visitors of all ages.

• Educational Opportunities: Learn about the latest in agricultural practices and technology through workshops and exhibitions, making it a valuable event for those in the industry.

• Telstra Women in Ag Luncheon: A key networking event for women in agriculture, offering a chance to connect with industry peers and hear from influential speakers.

Visit the Farm World website.

Where: Oaks Road, Carrick TAS

When: Thursday 1 – Saturday 3 May 2025

Agfest Field Days is one of Australia’s premier agricultural events, held annually in Tasmania. Organised by the Rural Youth volunteers, this event has grown from its humble beginnings in 1983 to become a highly anticipated showcase for the farming community. It attracts over 60,000 attendees and more than 700 exhibitors each year.

Ideal For:
Farmers, agricultural professionals, and anyone interested in rural innovations, machinery, and Tasmanian produce. Agfest is perfect for those looking to discover the latest advancements in farming technology, equipment, and sustainable agricultural practices.

Key Attractions:

• Diverse Exhibitors: With over 700 exhibitors, AgFest offers a wide variety of products, from high-tech machinery to handmade crafts, making it a one-stop shop for farmers and rural enthusiasts.

• Live Demonstrations: Explore machinery in action and get hands-on with the latest farming equipment to see how it can benefit your operations.

• Sheep Dog Trials and Livestock Displays: Learn from industry experts about livestock management and watch sheepdogs showcase their incredible skills.

• Agfest Boat Show: For those with an interest in marine equipment, the boat show is a popular feature highlighting Tasmania’s maritime culture.

See You All there. I am looking forward to catching up with many clients and friends

Cheers Robbie, 0413 700 988, www.realmgroup.com.au 

Well-placed to master the year ahead 

Here are the main highlights for some of Australia’s key commodities for 2025. The full report provides an overview of the developments to watch in the upcoming months. 

Australian agribusinesses are well-placed for 2025 despite expected rising geopolitical tensions, an underperforming Asian economy resulting in low consumer confidence, and a volatile energy market, which likely will make for an interesting year. Prices of livestock products are expected to fare well in 2025, and grain prices also hold upside potential, as reflected in a rising RaboResearch Australia Commodity Price Index forecast for 2025. Soil moisture in many regions is lower than it was one year ago. Most cropping and dairy areas along the southern coastline of Australia are too dry, while many of the country’s sheep and cattle areas received rains over the past two months, supporting feed availability. The rain forecast for the next three months paints a rather similar picture, which can hopefully still be offset if rains arrive during the growing season. Farm input costs, like fertilisers and plant protection chemicals, might remain stable but hold upside price risk, while crude oil prices might come off their recent five-month high.

RBA interest rate cuts are on the cards in Australia for Q2 and/or Q3 2025. We expect the RBA to make three small 0.25 basis point reductions, as global geopolitical headwinds might keep inflation and interest rates higher for longer. The global economic outlook for 2025 is subdued in many regions of the world, with Australia’s GDP growth recovery to 2.3% in 2025 being almost an exception. Major economies like the US (2.0% growth versus 2.7% in 2024) and China (4.7% versus 4.8%) are expected to struggle, which hurts consumer confidence and demand in those regions. The Australian dollar is forecast to remain weak near USc 60, which benefits Australian exports but makes imports more expensive. Australia’s tight labour market is expected to soften slightly.

Major agricultural sectors are well-prepared for the upcoming year. The recently harvested grain crop exceeded that of last year’s, but soil moisture levels in South Australia, southern Western Australia, and western Victoria need to be watched for the upcoming planting season. For beef and sheep producers, the outlook for farm-grown feed in the first half of 2025 looks promising. Prices of most commodities are not expected to reach the highs or lows seen over the past three years.

Geopolitics and shipping remain areas of concern. Trump’s return to the US presidency is expected to keep markets volatile. If trade duties are imposed as threatened, they are likely to be met with retaliation, with agri commodities possibly being impacted. Additionally, there is uncertainty about whether the US, a key destination for Australian beef, will impose import duties. The ongoing conflict in the Middle East, along with the rerouting of ships away from the Red Sea due to piracy attacks, are expected to continue causing volatility in 2025, as the recent ceasefire and suspension of Houthi attacks on vessels could be short-lived. The war in Ukraine can still impact grain markets if Russia progresses further west and limits Ukraine’s grain exports.

Globally, farm input prices for fertilisers and plant protection products are forecast to remain stable or increase slightly. In Australian dollar terms, Global urea and phosphate prices have moved upward from their Q2 2024 lows. As Australia imports most of its fertilisers, the weaker Australian dollar has been a key driver in this increase. Looking ahead to 2025, we don’t expect very significant price swings but see more upside than downside price risk. Costs on Australian farms are expected to remain well above pre-pandemic levels. Geopolitical tensions and potential conflict escalations could result in significant energy price swings and impact freight costs, thereby affecting the costs of fertiliser and plant protection products in Australia. Our global crude oil price outlook predicts Brent crude will drop below USD 70/bbl due to an expected oversupply, although the early 2025 price rally is heavily driven by fears of escalation in the Middle East.

Many Thanks to all from Robbie.

Please email us with a picture of yourself or a family member in front of your TOWN-SIGN to [email protected]

Women in Ag

• Natasha Johnston is the founder and director of a service that delivers care packages and financial assistance to thousands of drought-stricken farming families across Australia.

• Natasha and her friend Nicki Blackwell were inspired to help after hearing stories of farmers struggling to put food on the table. After loading a ute with supplies to take to one family in 2014, they soon started responding to calls for assistance from other families in urgent need. 

• Drought Angels is a unique service that provides a listening ear in addition to financial assistance and food hampers. This personalised support is a lifeline for farmers who often don’t reach out for help.

• Natasha’s work plays a vital role in reducing rates of depression and suicide, as well as helping to keep farmers on their land.

• Thanks to her hard work and dedication, Natasha frequently receives heartfelt responses of gratitude.

Thank You, Australia If you can help, please go to www.farmangels.org.au
Thanks to all for their contribution.

“Samantha Watkins Photography”

Realm Group Australia

REALM Group Australia (RGA) - originally est. 1992. The most trusted online Ag Marketing System in Australia. Built by Farmers for Farmers! Education is the KEY. True Pioneers - We were the first, and we are still growing. Proud Supporters of the Royal Flying Doctor Service (RFDS) & Ronald McDonald House Charities (RMHC)