By Colin Grant

 

How time flies! It’s been a while since we have released our last newsletter. In that time, we have had multiple COVID variants, gone back into lockdown, released again, wondered what governments are doing and seen the development of some of the worst issues in shipping we have known.

 

However, we have also seen the absolute strength of the Global Agricultural industry and why it remains one of the world’s strongest sectors. As pressure increases on land productivity, demand for improved products continues and is why Barenbrug Australia continues to invest heavily in R&D covering agricultural production in Temperate, Sub-Tropical and Tropical zones and we are looking to release several exciting new products over the coming 12-24 months. 

 

Australia has experienced a very mild spring with a La Nina event declared by the Bureau of Meteorology and so far, this is true to form with mild and extremely wet conditions in northern parts of the country. In the southern temperate regions its cool and we are going to have a much later harvest than normal. Combine with shipping issues and this will put a lot on logistics.

Domestically, and as in other parts of the world, commodity prices are very strong, and this is having an overall impact on seed prices for all products. New sowings may be impacted as growers chase higher value crops, but perhaps the price of Urea may make them think twice!

 

We continue to see a strong demand for red meat and wool. Records for cattle and sheep continue to tumble and this is keeping demand strong for improved pasture products. This will impact price and availability of several sub-clovers and tropical grasses.

 

The alfalfa market has seen a complete turn around from where it was 18 months ago. All major markets came back strongly and as such all major suppliers are sold out and completely reliant on new crop. USA supply is very low. It is also expected the Australian crop will be sold out very quickly as below average yields are anticipated, and high prices are expected to remain in play for at least the next 12 months.

Demand for Rhodes Grass demand has increased in Saudi Arabia after being a sluggish period and will now push us close to a sell-out position and reliant on new crop

Villosa vetch supplies will remain steady, except for EU varieties where new crop is already getting close to a sell-out position. Certified Persian clover supplied are expected to be under pressure as physical acres are well back on past years due to strong competition from other crops in the domestic market.

 

Also, I would like to advise the Olga Kostic has joined the international sales team and markets of responsibility include EU, NZ and North American markets. Olga comes to us with a wealth of international sales experience and will be looking forward to connecting with you soon.

 

Lastly, I would like to wish everyone a Merry Christmas period and a safe and prosperous New Year.