AgriCultivate: Forward sales of wheat, supply chain concerns continue and agtech skills rush creating pay rate reality check
Growers across the region are looking at forward sales of new crop wheat for 2022/23 and even into 2023/24. While this provides price certainty for growers, it requires a commitment to pricing and selling grain farmers haven’t yet grown. The Clear Grain Exchange’s Nathan Cattle reiterates that those holding old season wheat in warehouse unpriced should look to sell that before selling new crop wheat.
Logistics surrounding supply chain and distribution continue to drive inefficiencies and are leading to agribusinesses making uneconomical decisions in an effort to deliver agricultural products offshore and receive production inputs from overseas. Looking at ways to diversify the supply chain and export markets is essential for risk mitigation and continued supply of vital inputs.
In the rush to protect their farming businesses, many farmers are turning towards new technologies to lift productivity or help with decisions to ease rising costs, which has put more pressure on the market for skilled workers. However, althoughlabour shortages in agriculture appear to be beginning to ease with backpackers now being allowed into Australia, the challenges surrounding sourcing skilled workers are far from over.
In positive news, David Goodfellow, managing director of agribusiness at CBRE, reports that high commodity prices and the scarcity of prime farmland across Australia in relation to strong demand from farming families will continue to fuel farmland values across the next 2-3 years, with prime grazing country set to lead price growth over the coming few years.
Finally, stay tuned in the coming days as Cheryl and I begin providing you with vital information in regards to your five-year averaging. Do you know what your five-year average is, or why you need to be aware of it? We’ll reveal all of this to you shortly.
All the best,
Labour shortage in agriculture far from over
LABOUR shortages exacerbated by COVID-19 may slowly be starting to ease, but the overall issue is far from over.
... in March 2020 there were just over 200 agricultural jobs advertised (on Seek) and over 150 candidates in supply.
Disruption to the global supply chain has exacerbated already significant challenges for agribusiness and every business in the sector has been impacted - with the flow-on effect critical, according to Fraser Cuthbertson, chief financial officer The Pentarch Group which has agriculture and forestry interests.
Agriculture's serious labour shortage is feeding on itself as spiralling wage expectations clash with a tradition of modest wage growth and relatively basic conditions for workers with farm sector talents.
..."Casualising the workforce is exactly what agriculture does not need. We badly want to be building a proper skills base."
Surging farmland a ‘good hedge’ against inflation: CBRE agribusiness
Rural property veteran David Goodfellow says farmland values, which have surged 15 per cent per annum over the last five years, will continue to increase over the next two-three years despite rising interest rates and inflation, especially in the livestock sector.
Mr Goodfellow...(who) now managing director of agribusiness at CBRE – said agricultural commodity prices typically rose when inflation and interest rates started to climb.