Herald 20190115

Accounting records
are showing that dairy
farmer margins reduced
substantially last financial
year.
The release of the report
from the Queensland
Dairy Accounting
Scheme for the 2017-18
year showed a significant
drop in profitability for
Queensland dairy farms.
The average dairy
operating profit per cow
reduced from $758 in
2016-17 to $400 in 2017-
18.
QDO board member
Ross McInnes said
drought, lack of homegrown
forage and high
prices for all concentrates
increased the feed related
costs by 3 cents a litre.
“The current high grain
prices haven’t shown
ZELLER & CO LIVESTOCK
CATTLE SALE
In a larger yarding at Zeller and Co. sale
on Saturday, January 12, the yarding was
dominated by cows, and cows and calves.
Weaner steers sold to top rates with a
pen of Droughtmaster steers from Pechey
selling to $840.
Hereford x steers ex Ravensbourne made
$800.
Angus steers from Hampton sold for $930.
A pen of magnificent Droughtmaster steer
calves from the McCoy family at Cooyar
sold for $770.
The cow market was stronger with cows
from Plainby selling to $1460 and $1190.
The Frith family from Haden sold cows for
$1360 and $1340.
Next sale – Saturday, January 26 at 10am
Rick – 0428 879 531 or
Gavin Beutel – 0427 979 527
Thanking you for your ongoing support
For all you property needs please
call Caroline Cook – 0427 134 636
BUYING ALL TYPES OF CATTLE
Fax: 4698 2580
E: rick@zlp.net.au
through yet and estimates
by departmental staff
indicate extra feed costs
of around 3 cents a litre
for the 2018-19 year,” Mr
McInnes said.
The top 25 per cent of
QDAS farms achieved a
DOP of $928 a cow and
the remaining 75 per cent
was $149.
The main difference
and drivers for this extra
margin are in four main
areas - bigger herds,
higher production per
cow, lower feed costs
and better labour use
efficiency. The report
said that milk price and
investment per cow do not
have strong correlation to
farm profitability.
Mr McInnes said the
Queensland dairy industry
has used $1000 DOP as a
Your local agent
HIGH COUNTRY
FARMING
Dairy farmers struggle into 2019 with low margins
fully sustainable figure
which allows appropriate
business reinvestment.
A group of 32 long
term QDAS farms were
benchmarked over the
past five years and the
average DOP was $602.
These farms averaged
248 cows and 6100 litre
per cow. The performance
of these farms would
indicate a higher margin
than the average
Queensland dairy and yet
these same farms need
between 6-7 cents a litre
margin to achieve the
$1000 DOP.
This more than
anything else highlights
the challenges for all
dairy farmers operating
in a dysfunctional market,
he said.
QDAS has operated
since 1976 and currently
is supplied with figures
from 50 of the 390
Queensland dairies.
As a comparison, the
Victorian Dairy Farm
Monitor Project had 75
farms contributing data
out of a total of 3880.
All of this data
then contributes to
DairyBase for national
benchmarking.
CHALLENGES
in 2019
QDO Executive Officer
Eric Danzi says 2019 is
shaping up as another
challenging year for dairy
farmers and the dairy
industry.
“As has been the case
for the past eight years,
retail pricing and the
impact on dairy farmer
and processor incomes
is still by far the biggest
challenge to overcome,”
Mr Danzi said.
“Other key issues
include the Australian
dairy industry plan and
biosecurity.
“After many years of
no change on retail milk
Miles Noller reporting
prices, finally in 2018
some movement occurred
largely as a result of a
concerted campaign by
QDO.
“This has led to an
increase in prices received
by Queensland dairy
farmers.
For some this increase
was very short lived while
for others it will lead to an
increase in price of around
5 cents a litre for almost a
year.
“The challenge in 2019
is to turn these temporary
increases into a permanent
long-term solution.
“This needs to occur for
all dairy products, across
all of Australia and lead
to more sustainable prices
for both dairy farmers and
processors.
“For this outcome to
be achieved we need to
have a united industry and
run a concerted campaign
across Australia.
Harristown Saleyards, Mon, Jan 7, 2019
CATTLE SALE: 226 head yarded for the first
sale of 2019 at Harristown Saleyard Monday
7th January 2019. No export cattle yarded.
Best cows a/c Lindsay & Linda Hanson, Crows
Nest sold for $1223. No heavy feeder steers
or heavy heifers yarded. Best trade heifers a/c
Venvale Partners, Cambooya sold to 287.2c
to return $1026. Limousin steers a/c RJ Earl,
Greenmount weighing 278kgs sold to 288.2c to
return $803. Vealer steers a/c KD & PM Roche,
Rosalie Plains sold for 291.2c to return $868.
Store Santa x steers ex Inglewood weighing
240kgs sold to 292.2 to return $701. A pen of
Limousin steers a/c IR & PD Nobbs, Westbrook
weighing 277kg sold to 297.2c to return $823.
Lightweight Angus steers a/c Judy Anne Pty
Ltd, Cooyar weighing 208kg returned $597.
PIG SALE: 84 pigs yarded Monday 7th
January 2019, selling to a much cheaper trend
not able to maintain 2018 prices, store pigs in
the right weight range sold to a strong market,
no pork and bacon yarded.
Boars $48, Sows $116, Forward Stores $150,
Weaners $120, Suckers $80.
NEXT SALE: Monday, January 21
FOR BOOKINGS
Contact Darren Hartwig 0428 736 470
2019 is shaping up to be another challenging year for dairy farmers.
“The dairy industry
will develop a plan for
the entire Australian dairy
industry in 2019.
“It is very important
that this process leads to
a small number of clear
priorities to help farmers
significantly increase
profits and manage risk,”
Mr Danzi said.
ACCC REPORT
Optimism turns to
disappointment
Queensland Dairyfarmers’
Organisation
president Brian Tessmann
said 2018 was a year
of highs, lows and
frustrations for the
industry.
He said optimism at the
start of 2018 as industry
waited for the final ACCC
report into the dairy
industry value chain,
turned to disappointment.
“While not a
complete surprise, it
was disappointing that
there was little difference
between the interim report
released in 2017 and
the final report of April
2018,” Mr Tessmann said.
“The only major
difference between the
two was the ACCC’s
insistence on a mandatory
code of conduct between
farmers and processors.
“QDO and farmers are
certainly disappointed
that even after the first
round of consultations
held in November, the
retailers been ‘let off’
their responsibilities to
the dairy supply chain
with the ACCC insisting
that the voluntary grocery
code of conduct was
enough.
“Interestingly in
early January, the NSW
Parliament released its
own report into their state
dairy industry.
It was no surprise to
QDO, nor to any dairy
farmer experiencing
current conditions that
the findings state: “The
Australian Competition
and Consumer
Commission found that
this practice does not
directly impact the price
paid to dairy farmers for
their milk supply.
“This committee has
found, based on the
evidence before it, what
Selling on each Monday at
Harristown Saleyards at 7.30am
Full buying panel covering export, feeders,
trade and store descriptions.
Please note:- All livestock payments
in 10 days
For best results consign your
livestock to
LANDMARK TOOWOOMBA
Toowoomba Office Phone 07 4637 3000
Fax 07 4637 3022
Branch Manager: Guy Pitman 0428 740 151
Livestock/Auctions Plus: Andrew Costello 0429 485 191
Livestock/Auctions Plus: Simon Booth 0438 756 245
Stud Stock: Colby Ede 0417 265 980
Merchandise: Rob Wiemers 0407 736 198
Livestock Finance: Rob Moncrieff 0408 296 952
Insurance: Ceri Martin 0429 685 847
Insurance: Jolean Danneberg 0409 036 799
Livestock Administration: Jenny Radke 07 4637 3013
is intuitive to even the
casual observer and
abundantly clear to
farmers themselves: that
retailers selling milk for
$1 a litre has removed
considerable value from
the dairy value chain.”
With the rising costs of
feed caused by drought
and unsustainable farm
gate prices, QDO felt
something more had
to be done to provide
immediate relief for
farmers, Mr Tessmann
said.
The decision was made
for QDO to push for 10
cent/litre Drought Levy
imposed for all fresh milk
in supermarkets and it
caused a significant stir.
“The campaign
received significant media
and consumer support and
it was with a degree of
optimism that we pushed
forward.
“Unfortunately, the
might of Coles and
Woolworths proved too
great as they used their
considerable influence
to bury the campaign by
promoting what was little
more than PR stunts by
placing the levy on single
size and private label
brands only.
“When some rainfall
events occurred in the
south east of the state,
consumer and media
support unfortunately
waned, even though the
rain did little to alleviate
the conditions.
“Ministerial calls for a
Royal Commission into
the predatory pricing of
supermarkets have been
a welcome renewal of
interest in our industry.
“As one, we see that
the Commission needs
to investigate this issue
for all perishable goods
since bullying by the
supermarket giants is
well known by many
agricultural industries.
“As we enter the final
weeks of the year, national
and state dairy bodies have
come together to work on
a national campaign.
“We hope in early 2019,
we can work at a national
level with ADF and the
NFF to force the Federal
Government to approve
the Commission,” Mr
Tessmann said.
reporting on Toowoomba Cattle Sale
Booking Agent
for Toowoomba,
Dalby & Warwick
Cattle Sales
David O’Sullivan
0412 501 116
Paul O’Sullivan
0400 910 088
osullivanauctions@bigpond.com.au
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12 - HIGH COUNTRY HERALD - JANUARY 15, 2019 To advertise phone 4615 4416 or email herald@highcountrynews.net.au