The Flip Side of Australia’s Economy

This story of two tales begins in January 2020 when the property, stock and business markets were looking forward to a productive year ahead after 2019 ended in promise.  However, the scene was much different on the land.  Three years of drought followed by horrendous fire storms then flood.  Most producers had lost or were losing everything.  With some benefit to those that managed to pull through the first three months found that the rivers were flowing, the dams, water tanks and troughs were full.

In contrast come late March a virus came along and crippled Australia’s economy and a perception that 2020 would be a write off.

However, there was a little brightness in these times of grey and uncertainty.  The Agricultural Sector!  From previous tough years and

a hell of a start to 2020, from late March to now, some prime Queensland farming land has seen good follow-up rainfalls after the previous floods.  From Surat and surrounds on the Darling Downs, up through the Banana Shire (Wowan, Dululu, Biloela), and more generally Western/Central Queensland the recent rains have seen land holders restocking and rebuilding (i.e the mix of stock) their heards and planting Winter to Summer crops.

There also appears to be an increase in market activity with reports of good sales of large, well-watered agricultural properties being achieved.

With the virus lingering within Australia, it still provides a much more influential effect on the wider world economies, which will surely hurt our agricultural exports.

Market reports indicate that cattle slaughter rates will drop by approximately 19%, however, live export steers are up approximately 32c/kg across the board, although at decreased numbers.

Now, in May a new threat has emerged with rumbles of a Trade War with China beginning.  As Australia is looking to rebuild this Trade War is likely to have significant effect to our beef and grain sectors.  However, this issue could also provide opportunities to diversify our exports and identify new emerging markets

Prepare yourselves to what is expected to be a roll-a-coaster of a ride in 2020.

Any queries on Plant, Machinery, Business, Agriculture, Manufacturing, Livestock or Property please do not hesitate contact us.