A change in mindset. This is something Chris Howie reckons cattle producers across the state might need to keep their herd, and their back pocket, healthy in 2024.
Mr Howie, CEO of RMA Network, which supports independent stock and property agents across Australia, says changing the way cattle producers look at markets and preparing their cattle will help make 2024 a better year.
And this starts with a different mindset.
He said the looming El Nino in 2023 meant many producers had a drought mindset before the dry hit.
"There are too many producers that aren't looking forward. Everybody wants to look backwards. When you do that, you are managing retrospectively, and you are managing things that you can't control or have already happened. When we talk about mindset, you need to think about the things that you can manage."
Time to buy
He said things were looking up for cattle producers, especially since it seems the glut of excess stock was finally disappearing.
"All the numbers that we've built up over the past three years are pretty much out of the system now, especially the older stock, and we're heading towards what I would say is good demand internationally with normalised supply," he said.
Mr Howie suggests that producers buy younger, good quality stock.
"The market has recovered to where the normal, stabilised market should be."
Something Mr Howie has always encouraged producers to do is to make a margin when they buy.
"When you buy is when you make your money every time," he said. "I know this sounds silly, but if I pay 10 cents a kilo too much for steers and I know they are dear, they will always be dear. If the market goes with me, that's fine. But if the market remains flat or eases a bit, that 10c/kg is always there nibbling away at the margin you can make."
He said knowing your target market was crucial.
"If I'm buying 300kg steers at the weaner sales, I am aiming to get them up to a feeder weight or a bullock with only one winter on them," he said. "I want to buy the livestock that are going to give me the best weight gain in the shortest period of time. The second you have a target market, all you have to focus on is feeding those cattle."
He said when it comes to buying stock, have a plan.
"Know what you want to buy, have a plan B if the market is too dear, such as going from steers to heifers or buying Black Baldies."
He said buyers needed to be prepared to 'go left of centre', whether that means going to a different sale, or placing an order at a different sale with an agent. "Sometimes the sale you are at is where everyone lands and drives the price up. Spread your risk instead of adjusting your price on the run."
He said seeing your agent as an asset was a big bonus.
"All the going to sales, helping draft, classing and phone calls that agents do - they are only paid once you sell something. If you are treating an agent as a cost before you start, the relationship is always going to end poorly. If you talk to your agent and discuss your plan, you're in the boat together heading in the same direction."
Mr Howie feels that because there is so much information out there, some producers are reverting back to what they've always done rather than getting good advice. "We need to find someone we can trust - it might be an agent or a livestock advisor - because they have already filtered all that information and can tell you if a product or system is working well for others."
Keen to wean
When it comes to weaning before selling, Mr Howie has one piece of advice - do it.
Mr Howie said 20 years ago, all calves were sent to the yards straight off mum.
"They would stand in the yards and bellow, they'd be full of milk and 300kg, and everyone is happy," he said.
"I would buy them and take them home, they'd run around the paddock for the next 10 days looking for mum and wouldn't eat, and they'd drop 25kg in weight. Or a feedlot buys them and the calves won't feed."
He said over the years there had been a push to wean calves. "They travel better, and the day you get them home, they start to perform on the right feed," he said. "In a feedlot, they acclimatise within two days and start to put on weight.
"When we had good seasons, we saw a lot of unweaned calves coming back into the market, and because there was a shortage, they were being bought. Now there's not, and you will see buyers become selective, especially feedlots. If calves aren't weaned, buyers will discount or walk straight past them. It's about every time that animal lands somewhere, it's creating value for you, not losing value."
It is a good idea to contact the buyer of your stock to find out how they performed last year. "It may help you improve what you do."
Describe as they are
When selling your stock online, Mr Howie suggests taking your time to get good quality videos and photos. But he also says make sure you describe your animals as they stand.
"You don't know who is going to buy them or where they are going to go," he said. "They might be going into an ironbark scrub and will never have the chance to be a bullock because they are eating gum leaves like koalas. Just describe them as they are - they've come off this pasture, their current weight gain is this."
He said also to fix the reserve at the price you would be willing to accept.
Delivery is the key part of any online transaction, so before you load them on a truck, remember - if in doubt, leave it out.
"Let's say you have just loaded all described animals on the truck, and there's a few you've taken out, but there's room. There are plenty of people who will load them just to get rid of them on the day. So they are the last two animals on the truck. What are the first animals off the truck? Those two. As soon as they come off, the buyer starts looking at every animal, and every fault is magnified because they saw those two. It's not just about animal welfare - it's about doing a correct delivery. If you're in doubt, leave it off the truck."
