Thread: Australian agri-business set to do well in the current economic conditions.

Wool prices not so much at the moment

Fibres_1-01.jpg

Regards,
Tote

We have friends in the Mallee. An average holding will save $9K in fuel costs for sewing this season. They have had very very good rain, and the ground is looking in better shape than some have ever seen it.
But crikey, these guys work so hard all year, every year, in all sorts of conditions, they deserve it.
Pickles.

Both wool and cotton are forecast to look pretty ordinary over the next year or two, and as for those agribusinesses that produce high value specialty foods for restaurants or, worse, export by air..........

Originally Posted by bob10

The only draw back? Machinery , spare parts, and agricultural chemicals have to be imported, in the main.


Australian agribusiness bucking trends as economic predictions grow gloomier amid COVID-19 pandemic

Several people I know were 24hours a day plowing before the rains hit this week. Best Spring break for years

The other issue of course is that after years of drought, many farmers have maxxed out their lines of credit, and are scratching to find the money to sow. Not to mention the problems finding seed.

Originally Posted by Tote

Wool prices not so much at the moment

Fibres_1-01.jpg

Regards,
Tote

Wool & cotton not so good.
Fibre demand slack

Nearly three quarters of Australia's raw wool supply is sold to China, and half of that is consumed there.The rest is bought in Europe and the United States where soaring unemployment will mean less demand for woollen garments.Domestically, the fashion industry has also taken a massive hit.

"When you see retail sales in the US and Europe collapse in the space of a month, that's concerning for our industry which is so reliant on retail," said Fox and Lille wool broker, Eamon Timms.

That uncertainty has seen woolgrowers holding bales back from auction.Which, in turn, means the raw supply of wool is growing, as demand drops off, weighing further on prices."It'll be a difficult readjustment for those farmers," Eamon Timms.Cotton prices are also sliding, with ANZ noting, "concerns growing over the impact on global economic growth of COVID-19 have cooled business sentiment, particularly in China".

Originally Posted by bob10

The only draw back? Machinery , spare parts, and agricultural chemicals have to be imported, in the main.


Australian agribusiness bucking trends as economic predictions grow gloomier amid COVID-19 pandemic

A number of makes of farm machinery were once made in Australia. Others were assembled here. Most decent size country towns had several tractor and machinery dealers, new and used. Now there are many country towns without a machinery dealer, indeed, without a car and truck dealer. No tractors are made here nowadays. A lot of reasons for this. One was farmers giving their canary impression "cheap, cheap, cheap" and buying on price equipment from Asia and the Soviet Union. A number of profitably trading co-ops were brought undone by supplier/shareholders robbing them blind or taking their thirty pieces of silver and selling to a multi-national corporation.

Originally Posted by JDNSW

The other issue of course is that after years of drought, many farmers have maxxed out their lines of credit, and are scratching to find the money to sow. Not to mention the problems finding seed.

I can't speak for individuals, and everyone has a different scenario,...but until a couple of years ago, the Mallee had suffered a few bad years, & most were doing it tough, but last year was very good, so most, around the Wyche area have had a bit of a recovery last year, & with this year looking good, many are very excited.
Pickles.