17Nov 2016 by Ian Mclean No Comments
Big variation exists in producer financial performance, despite high cattle prices

Big variation exists in producer financial performance, despite high cattle prices

Articles & Publications, Opinion Pieces
By Ian Mclean (a summary of his presentation to the Young Beef Producers Forum 2016) This article was first published on Beef Central It is an exciting time to be in the beef industry with high prices, increasing demand for our quality product and a positive climatic outlook. But what exactly does this mean going forward for beef producers? What should producers do to capitalise on the current situation, and best position their business for future performance? A discussion on future performance should start with an understanding of current and past performance of beef producers in Australia. The best available data on long term national industry performance is the ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) farm survey data. Analysis of this data shows that the total…
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21Dec 2015 by Ian Mclean

Tectonic shift or high tide for the beef industry?

Articles & Publications, Opinion Pieces
Record high beef prices, increasing demand for quality protein, decreased herd size…… are we seeing a tectonic shift for the beef industry, or is this a cyclical high tide that while welcome, is only temporary? This is best addressed by looking at the current prices relative to longer term prices in real terms (with inflation removed), which is shown in the below graph. Two major points can be seen here; there is an obvious cycle in the prices, and we are currently at a high point in the cycle, the current prices are not significantly higher than they were in 2001, This doesn’t mean prices won’t continue rising; what prices will do in the short term is anyone’s guess. However the cyclical nature of commodity prices is pervasive and high…
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06Nov 2014 by Ian Mclean

Queensland Beef Industry Debt

Articles & Publications, Opinion Pieces
Over the past decade, the Queensland beef industry has moved to a position where it is not making sufficient profits to cover interest costs. Not only has total and average debt increased, but the number of businesses with debt has also increased. Wide variation in business performance exists, with some businesses still profitable in the current environment. Full article
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29May 2014 by Ian Mclean

Northern Beef Report

Articles & Publications, Industry Publications
The 2013 Northern Beef Report comprehensively details the performance of the northern beef industry, by region, market and herd size over the 12 years since the start of the century. On average, the profits achieved over that time frame have been low, but not trending down. However the profitability of the top performers across the industry has been trending down over the period analysed. Profit after interest is decreasing, and is mostly negative, as a result of increasing debt with no increase in profits. The majority of Northern Beef producers are not economically sustainable as they are not able to fund present and future liabilities. There is wide variation in performance across the industry; this report clearly identifies what separates the top performers and what factors determine the profitability of a beef business. This report provides analysis of a wide range of measures, providing the means…
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