The Gulf cattle industry is starting to transition out of one of the worst droughts on record but producers need to be on the front foot to capitalise on future opportunities.
That was the key message from the industry’s leader, Barry Hughes, president of the Gulf Cattleman’s Association, in his address to the BeefUp Forum at Mt Surprise last week.
“Our business along with many others across the region has been laying dormant over the last five years and we all know why,” Mr Hughes said.
“Some have copped more adversity than others. The cost of production has been higher than return on product which is one of the main drivers of where our industry finds itself in this region.
“We have been in survival mode and that has taught us a lot about our business.
“It is time we look positively at the way we manage our land, livestock and finances.
“No-one knows your business like you do so things like stocking rates matching carrying capacity, soil health, biodiversity, spelling paddocks and getting soils healthy again is our role as land and livestock managers.”
Mr Hughes said while the industry was currently “not in good shape”, better things were on the horizon.
“I believe things are getting better, changes are happening and we need to be there when the opportunities present themselves,” Mr Hughes said.
“Production, turn over and cash flow are the key drivers that will help grow and enhance your business for a more sustainable future.”
Mr Hughes said producers were now faced with increased grass banks and water but low livestock numbers as a result of destocking due to years of drought.
“We now have to be looking at turning that around,” Mr Hughes said.
“Stocking rates must be managed effectively to allow pasture regeneration and now that we have had a sniff of a good season and our land has bounced back to some degree how do we take advantage of these resources but being mindful of overstocking.
“We all know we have to increase production through increased herd numbers while opportunities present themselves.”
Mr Hughes said the Gulf cattle industry needed continued tolerance and flexibility from financial lending institutions, as shown during recent difficult times.
“Our future as an industry is far more positive,” Mr Hughes said. “Our businesses need ongoing financial support to achieve outcomes and I see the banking sector as part of our solution.
“Your relationship with your bank is paramount to achieving the potential we now have.”
Mr Hughes also encouraged producers to access the region’s mental well being services.
“Your well being is just as important and I can’t say that loudly or long enough,” Mr Hughes said.
“The psychological well being side of our industry is taking a battering and I think we have on a regional level the service providers in place to help people deal with those situations.”
