RMA Network CEO Chris Howie.

LAMB quality is becoming an issue, along with stock water and soil moisture, as the season impacts eastern Australia, but there are opportunities, according to RMA chief executive officer Chris Howie.

I was at the Wagga lamb sale last week and it was evident the buyers are still actively hunting numbers, but quality is becoming an issue.

Prices on heavies have eased to $7.80-$7.90c/kg carcase weight and any lambs well finished above 26kg had no shortage of demand. The significant numbers of “lighten off” lambs saw prices down in the low $7.

There are great opportunities for those with adequate water and feed. Many of the feedlots have lifted their buying specification from 30-35kg liveweight to 38-45kg. Rates on these lambs range from $120-$140 as they require less time on feed to break into the next price level – good business.

Speaking to Wagga agents Joe Wilkes AWN Wilks McKean and Matt Hawker from H. Francis and Co both felt the lamb market has lost the big jumps and dives we saw last year.

“It seems to have found its level with prices moving on supply and quality.”

“Smaller and light condition lambs are difficult because they are a longer game, but for any with feed or irrigation they seem to be very good value.”

Over a period of time we have seen the domestic supermarket trade pushing deep into the export lamb weights. What was traditionally a supermarket 20-24 kg carcass is now 22-28kg. In turn we are seeing volumes of these 25-28 kg cwt lambs being contracted outside of the export processors. Competition is always good if it is consistent and the season has highlighted how many are interested in this weight range.

So, the question is: what to do?

My humble opinion is weight is king this year for lambs and the demand for heavier lambs into mid-year will follow normal trends of prices moving up for quality. So if you are going to have a go, don’t do a half-arsed job and expect top dollar. Feed them well.

I was speaking to Clint Wardle, WestCoast Livestock manager in WA, water is also becoming an issue in some areas. The continued impact of the live export ban on sheep has really done some damage with processors running at capacity and many runs of lambs being sent east. The season in the east is now creating an issue and price reduction seems to be the only lever to create interest.

I see the Keep the Sheep campaign is still going hard and the recent by-election result in Victoria may see this have some serious teeth in WA by election time. It must be having an impact because Animals Australia has plagiarised the website name and then sponsored so it is above Keep the Sheep.

The season is biting

The short and dry winter in the south last year is now starting to show its teeth. The markets are well-poised to supply some price upside to those with quality and weight. However, sub soil moisture and surface water is now becoming an issue. This dry ranges from Esperance in WA to Wagga in NSW and we are now seeing cattle and sheep being lightened off before their normal sale window. A bit like the wind blowing against the tide, everything is a bit jumbled up yet we know the demand for finished stock is solid however the season is getting in the way.

It is still too early for a break in the south with a lot of heat yet to run. I was speaking to Paul Wiencke from Cambrai in South Australia and he said the old German farmers used to say “big wet in the north and a hot summer in the south lead to a good winter” – fingers crossed.

I rang Herbie Neville, Agent for Elders Alice Springs over Christmas whilst having a break on Kangaroo Island. Over a 24-hour period big flocks of shags – Cormorants for the more woke – were forming up and heading north. I suggested to Herbie a big rain is coming and he agreed. I don’t think either of us knew it was going to be that much in far north Queensland. Perhaps the Bureau of Meteorology should go back to watching nature and reading the signs. Lizards on posts, ants building mounds, waterfowl heading north and cows laying down to keep their udders dry?

It’s not all bad though. Sandy Martin from Witchitie and Barratta Station from the north of South Australia sent me a snap of some very happy pastoral cattle. The season has been good with plenty of herbage to carry into winter.

Season is opening the door to opportunity

The current season is opening the door to opportunity. With the feedlot industry breaking 1.4 million cattle on feed and lamb feedlots starting to really load up it is apparent some supply conversations have been had around the place. One way or another – be it a continued dry or breaking rain — from April onwards quality supply with weight from both species is looking tight. Every country seems to be in herd reduction at present and as a net exporter if we can get a rain, Australia is very well positioned.

The maturity of the livestock finance sector is now a real bonus for those looking to have a go — especially with the ability of back to back buying with a contract in place leaving the farmer to concentrate on weight gain. And it doesn’t impact your overdraft for the winter cropping program.

Planning for water shortages

Ron Rutledge, Nutrien Livestock Victoria/Riverina and I were discussing the dry and both of us were left wondering why we are not better at getting set for a dry time in Australia. Whether it be dams for the population or dams for livestock it seems no one speaks of it until the water runs out.

With the advancement of technology like Farm Bot, solar power, bore drilling, poly pipe and tanks this should be an ongoing program in good years for everyone. Colin Barnes and his lads from Wilmington in SA purchased Gillies Downs station in the late 80s west of Iron Knob. They then laid 22 kms of PVC pipe — do the sums on joiners and glue at 6 meters per length — with the assistance of the late John Watkins, Elders at Port Augusta, who was a master at reticulation of water. This lifted the carrying capacity and drought-proofed dams. I know many are already doing this but many aren’t. Imagine if we had built the pipeline from the Ord river scheme when it was first discussed instead of the excuses of why we shouldn’t.

Agency backend support

Over the past 12 months I have been speaking to Joel Roches, managing director of AgriNous about his agency processing platform.

It was refreshing to speak to someone invested in creating a solution based on the needs of the ground troops not the board room. The complexity of stock agency administration has always been a hurdle for those looking for staff or to start their own agency business. The development of the AgriNous platform from the saleyard up and its integration with the Xero accountancy system has removed this roadblock. Whether for an agency looking for administration support or a greenfield start-up, this is a real game changer for the next generation stock and station agency.

Breed and agency media

Over December and January there were several articles about breed preference and agency risk that highlighted the lack of knowledge the respective journalists have of the industry they are writing about.

Lack of due diligence and listening to the loudest voice, in a small spot, in a big country doesn’t do any of us any favours as it creates a false narrative – Bloody hell I sound like Trumpy!

Angus and their crosses are the dominant number these days at most sales however when good runs of other breeds are penned the price variance is minimal and the weight for age discussion becomes very real. As an example, the run of Limousin steers and heifers at Hamilton topped at $4.44c/kg and the excellent run of Herefords saw northern and local orders paying the same money as the blacks.

Following on an article about agency risk pre-Christmas made it sound as though one person who did the wrong thing and was not aligned to any company is representative of everyone. Using that premise, I played football therefore I am as good as Gary Ablett? In summary, all of us want balanced views to learn from, not sensationalist snot to create unneeded drama.

Cattle – weaner sales

Overall the run of calves this year presented better than many thought back in September. Most because of the season were very well weaned and this was reflected with the competition received. EU calves were well-sought after and depending on the quality seemed to be making 10-20c/kg more than non-EU.

Early sales saw solid northern competition pushed along by some significant southern orders, with rates on best steers in the mid-$4/kg and a week later heifers to the mid $3/kg ranges. In saying this, many very good runs of cattle were put together, with steers at $3.95-$4.20c/kg and heifers from $3.15-$3.35c/kg. Weaners above 275kg were the most sought after weight, with the 200-275 kg calves struggling in some centres. On a couple of days too many sales reduced the buyer pool, which created some price holes. It also became difficult to obtain trucking if you had not pre-planned.

Feeder demand

Early sales saw excellent demand from feedlot orders on steers above 350kg with prices from $3.75-$4.15c/kg. As the series progressed, the rates tended to soften and started to return less than feedlot offers. I suppose the question is: what is the value of sending feeder weight ranges to the feature sales? If we know in October that the lead calves will hit the intake weights wouldn’t we be better off booking those in for a January delivery direct to feedlot? In doing this, I also believe we would see the ability to condense a couple of days into one sale inclusive of heifers or more agencies. Only an idea, but worth a thought.

Easing of prices creates more opportunity

February has seen the next influx of weaners, starting with Ballarat having a large sale series in February. TB White and Sons agent Tom Madden said many April/May sale calves are being off loaded now due to the season. In turn, this provides an excellent chance to buy high quality calves at a lower weight making freight sums work better per head. One of the larger early weaner buyers from northern NSW said: “if we had waited, we could have saved 30 cents, but our business runs on contracts written and we are happy with the prices paid.

“If we waited it becomes speculation and a large rain through NSW would have seen us caught without numbers and having to pay well over the odds later.”

It is easy to take our eye off the ball in February after a big January, but getting engaged with prices and what is coming up leaves those looking to buy with an excellent catalogue of cattle over the next three months. There are plenty of sales rostered for weaners in Victoria, Tasmania and then north into New South Wales.

Speculation – ‘having a punt’

One word that we were told never to use in the agency game was guarantee. Before mobile phones a big part of the livestock trading scene was called punting. Buying in one area and moving livestock to an area with rain, an abattoir in short supply or an expected rain event.

Because of the limited communication, those that had a network could leverage relationships with a deal that many were not aware of. Now with mobiles, X or Twitter, Facebook and email the world is very small and the Thursday rural press is not the only source of what’s going on. Like punting on horses, you only ever hear about the wins. In 2025, there have been a few taking a punt, with one deal having a guaranteed return to the investor. If it comes off well done, but if it doesn’t the “uneducated livestock investment” leaves a poor story for the rest of the industry.

Again, heifers are showing a great margin return. Many have been bought at less money per kg than the exit contract pricing, grain or grass. This means every kilogram gained starts to become margin as buyers don’t need to gain 50kg to get to a break-even number.

RMA training program open for business

Inspire 300+ is an event that will be held in Wodonga on the 27th March. The Wodonga TAFE, MLA and the RMA Network training program are hosting the industry level event. It is celebrating over 300 people trained over the past 12 years to be part of the livestock and wool industry. The event is a dinner with guest speakers aligned to inspiring our next generation whilst recognising the achievements of past participants and involved businesses. It is open to all of industry. More information is available about attendance or sponsorship from Simone Dand 0455 240 307

Opportunities

 Continue to target weight gain.

 Utilise livestock finance to create opportunity.

 Light weaners and lambs – long game

 Heifers are still a great earner.

 Back to back contracts

 Custom feeding

 Be careful of the punt

 Become involved with training the next generation.

 Keep an eye on your mates during the dry.