Country Journal, Week #77 - June 27, 2022 by SmallNewspaperCo

4000 COPIES DISTRIBUTED WEEKLY IN THE SOUTHERN DOWNS REGIONAL COUNCIL AREA + DAILY JOURNAL & STANTHORPE RECORD

CountryJournal Week commencing 27th June 2022

Government Netting Fund Extended

Photo courtesy Netpro

Wool Market Report Lumpy Skin Disease

Photo courtesy Elders

Water security for Queensland Krista Bjorn krista@smallnewspaper.com.au

rioritising water security for Queensland with $510 million announced for water infrastructure and planning is bringing hope and relief to farmers. “Water security is an essential factor for Queensland’s agriculture sector to continue growing world-class food, fibre and foliage and unlocking new opportunities into the future,” Queensland Far mers’ Federation (QFF) CEO Jo Sheppard said. “We have farmers producing world-class food who have endured intense drought and flood events over the past ten years, and we need to focus on prioritising future water security to underpin the future of farming across the

commodity,” Ms Sheppard said, “and continual investment in water efficiency programs, innovative farm technologies, critical infrastructure, and prioritising water security in regional Queensland is required to enable our agricultural sector to continue to supply our local and export markets and drive economic growth in Queensland.” Funding has also been provided for further work to be state.” Of the $510 million, $447 million will be set aside for water security projects, including the Toowoomba to Warwick Pipeline project, to support the future sustainability of irrigated agriculture,(07) 46 619 835 regional economies, and com-E warwick@rfsteelbuildings.com.au munities. “Water is our most precious

undertaken in the Rural Water Futures program which has allowed irrigators to provide valuable input into the sustainable management of water through innovative technological applications. “Prioritising water security sets a strong message to the agricultural sector,” QFF said, Continued on page 3...

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COUNTRYJOURNAL

Country briefs Free ag workshop People in the agriculture industry can now access a suite of free workforce planning resources thanks to a collaboration between Jobs Queensland and the Queensland Farmers’ Federation.The resources are for micro, small, and medi-

array of templates and fact sheets.These additional items will help participants calculate workforce turnover, decide who should be involved in the process, know their own business and workforce well, understand current workforce data, and create a detailed workforce plan. For download links and more information, contact the Queensland Farmers’ Federation.

um-sized enterprises in the Queensland Agriculture Industry, and have been designed to help with understanding the benefits and advantages of workforce planning, building knowledge and understanding of workforce planning, and growing capability and skills in workforce planning. The resources include a digital Workforce Planning Connect toolkit and workbook and an

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QLD_P13_M9x4_WDN

Women in motorsport track day Women are invited to put the pedal to the metal for Women in Motorsport track day on Sunday 31 July at Morgan Park Raceway. "Drive your own day-drive car," organisers said, "or you can be a passenger with an experienced driver in a race car." The track day will run from 9:30 a.m. to 1 p.m. For more details, contact Morgan Park Raceway.

Rocking the park Soon Leslie Park will play host to Warwick Cruize Inn Club's annual car, bike, and truck show. Held on Sunday 24 July, the event begins at 9 a.m. Sponsored by Warwick Credit Union and the Warwick Cruize Inn Club, the show will feature live music from the Witch Doctors throughout the day, along with food stalls and trade displays. There will be Top 10 trophies up for grabs from Autopro Warwick.

$200 K in grants Staff Reports editor@thedailyjournal.ink

The Queensland government is giving Southern Downs growers a longer deadline to apply for $2 million in Rural Agricultural Development grants. The grants, of up to $200,000 per business matched by the successful applicants, will help sheep and goat enterprises, businesses along the supply chain, and businesses that use sheep and goat-derived materials in their products or activities. Minister for Agricultural Industry Development and Fisheries and Minister for Rural Communities Mark Furner said the extension was to ensure that producers and businesses in communities recently hit by flooding were not disadvantaged in the expressions of interest process. "Expressions of interest for the first round of these grants

will now be accepted until July 31," Mr Furner said. "We know some of these communities have been hit particularly hard and we don't want them to miss out on this support as these industries grow. "These grants aren't just about strengthening primary production involving sheep and goats, it's about job growth and supporting economic development in rural areas," the Minister said With $2 million of funding available in round one of the scheme, the grant can be used for a range of eligible activities including, but not limited to: 1. developing a new market for a product derived from sheep and goats; or 2. expanding the capabilities of businesses within the supply chain for production, processing, manufacturing or selling products derived from sheep or goats; or

3. providing specialised training or equipment to an eligible primary production enterprise. "These grants will support the sheep and goat industries and related businesses to reap the benefits that have already been generated by cluster fencing in Queensland. "More than 9,000 kilometres of fencing has been approved and 400 sheep-producing properties have been protected thanks to funding support by the Palaszczuk Government. "Under our Sheep and Goat Meat Processing Strategy, we are striving to double the value of sheep and goat production to $150 million per year and create over 100 new jobs "This funding will allow businesses in the industry build their capacity to better meet the needs of customers while expanding their customer base."

COUNTRYJOURNAL

Water security for Queensland Continued from page 1

“that the state government is ready to get serious on climate change and assess what these changes will mean for the future of our farmers. Water and food security need to be front and centre of any decisions going forward in Queensland.” An additional $10 million dollars is to be invested over two years as part of the Queensland Microgrid Pilot Fund with a view to enabling energy independence and building capacity in regional and remote communities. “QFF supports initiatives that work closely with industry and community to develop energy security, affordability and a continued focus on driving on farm energy efficiency,” they said.

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WARWICK CREDIT UNION

Speak to a local lender. Warwick Credit Union Ltd ABN 98 087 651 116. AFSL and Australian credit licence 240556.

COUNTRYJOURNAL

Country briefs Lettuce relief? Coles and produce growers are working to provide a temporary solution for customers wanting to buy iceberg lettuces, after floods and cold weather have impacted their supply. South-East Queensland customers will be able to purchase two smaller lettuces for $6.50, the same price they would currently pay for one at Coles. While these lettuces haven’t fully grown due to the extremely

cold weather, they are in good condition. The initiative allows growers in the Lockyer Valley to utilise some of the iceberg lettuce crops that have been impacted on by the recent wet weather and will improve availability for customers. Lockyer Valley producer Matt Hood from Rugby Farm said there is plenty of this product in their fields and this initiative will ensure they don’t go to waste. “We’ve had devastating floods earlier this year, ongoing heavy rainfall, recent cold weather and lower levels of sunlight and that means we’ve

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Main phone number: (07) 4528 3131

Head office: 41 King Street, Warwick A.C.N. 167 171 217

• Editor: Elizabeth Voneiff editor@thedailyjournal.ink * Sales: Gordon Bratby 0437 417 736 * Sales: Peter Schmidt 0447 105 846 sales@thedailyjournal.ink A little bit of legals While every care is taken to compile this newspaper accurately, we cannot be held responsible for any errors that may occur with advertisements or articles. All submitted content does not necessarily represent the opinions of The Small Newspaper Company or The Country Journal All art and editorial content remains the property of the relevant copyright holder and may not be reproduced without permission. If we have got something wrong, get in touch, and we will print a correction in our next edition...and apologies in advance!

struggled to get our lettuces to grow to a big enough size that customers would expect,” Matt said.

Buy some yourself!

The US Senate Agriculture Committee quickly approved legislation on Wednesday that would require meatpackers to buy a portion of their slaughter cattle on the cash market — a step intended to ensure fair prices — and create a USDA special investigator to enforce fair-play rules in the highly concentrated meat industry. The National Farmers Union said action on the bills was a sign of momentum “towards fairness for farmers” after years of unrest among producers.

Weekly tips

There are quite a few flea's around so make sure your pets are treated, particularly as parasites+ cool weather is never a good combination. On the topic of parasites, it is worth also keeping a close eye on livestock ad well as keeping up treatments for a range of internal and external parasites. If you are planning to attend the Stanthorpe poultry auction to by birds it is worth getting you cages ready before hand. The good rain and now cool weather mean rodent number are high and some are moving into homes and sheds. I recommend bait blocks and cage traps. -Ben Boland

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COUNTRYJOURNAL

Lumpy skin update Elizabeth Voneiff editor@thedailyjournal.ink

A new, online one-stop information portal for Lumpy skin disease (LSD) and foot-andmouth disease (FMD) preparedness is now available to Southern Downs livestock owners at https://daf.engagem e n t h u b. c o m . a u / a n i mal-disease-preparedness Minister for Agricultural Mark Furner said the Queensland Government was working closely with its industry taskforce partners to prevent and prepare for the biosecurity threats. "With both LSD and FMD confirmed in Indonesia, the key to Australia's defence is vigilance, early reporting and ensuring every Livestock Supply Chain enterprise in northern Australia has an updated biosecurity plan in place," Mr Furner said. "Early detection will help our valuable livestock industry to minimise the economic and community disruption of any animal disease outbreak. "The newly developed eHub brings together all the latest information about identifying LSD and FMD. 'It has links to biosecurity planning tools and training packages for the Livestock Industry Supply Chain, and land

and livestock managers, and tracks the progression of these threats towards our borders. "It will be a collaborative site with the preparedness resources being developed by our key stakeholders also shared on the eHub. "Livestock owners should be

aware of the signs of LSD and FMD and report suspect cases immediately to the Emergency Animal Disease Watch Hotline on 1800 675 888. "I urge all livestock owners to follow the eHub to receive regular notification of new resources as they are added." Background: LSD can infect cattle and water buffalo, causing painful skin lesions which cover the body and erupt. Other disease symptoms include fever, watery eyes, loss of appetite and a reluctance to move. FMD infects a wide range of

cloven-hoofed species including cattle, pigs, sheep, buffalo, deer, camelids, and goats. Infected animals may show fever, drooling and be reluctant to move. Animals can suffer from blisters on the mouth, snout, tongue, lips or between and above the hooves on the feet.

An FMD outbreak in Australia could be caused by food contaminated with FMD virus being illegally imported and fed to pigs. Only feed fruit, vegetables, grains, and commercial livestock feed to pigs. If you're aware of prohibited feed being fed to pigs, report it to Biosecurity Queensland on 13 25 23. Links to important information Make sure you have biosecurity measures in place on your property and that your biosecu-

rity plan is up to date. Check your biosecurity entity registration and contact details are up to date. Registration helps us quickly locate animals and contact livestock owners if there's an animal disease emergency in Queensland. Visit qld. gov.au/BiosecurityRegistration To learn more, visit business.qld.gov.au and search for 'lumpy skin disease' and 'footand-mouth disease'.

Livestock Industry Preparedness Taskforce The Department of Agriculture and Fisheries has established a Livestock Industry Preparedness Taskforce in response to the presence of Lumpy skin disease and foot-and-mouth disease in our geographic region. It includes all levels of government, key industry enterprises from the Livestock Industry Supply chain, and peak bodies. It is evolving to have a focus on the Northern Australian livestock supply chain, and we will continue to collaborate with Northern Territory and Western Australia as we prepare for our enterprises and land managers to face this risk together. Picture shows what LSD looks like.

COUNTRYJOURNAL

Good stylish rams sell Ross Ellis McDougall and Sons

gents today yarded 1285 head to a very strong buying panel looking for both back to the paddock, feed on and processing types. Good stylish rams and ram lambs also were in good demand. Lambs topped at $238 to average $180.42($2up), hoggets topped at $228 to average $156.93($2up), ewes topped at $228 to average $116.48($18down), wethers topped at $230 to average $192.55($30up), rams topped at $390 to average $202.27($84up), ewe and lamb units topped at $280 to average $218($78up), lamb rams topped at $370 to average $173.38($21down), ewe lambs topped at $198 to average $173.08($2up). The sale average of $167.73 was on a par with last

week's sale. Martin Roberts sold lambs 44.8kg to GR Prime for $165, 47kg to GR Prime for $186.50, 48kg to Tonys Supa Meats for $196, 39kg to Moniel Shan for $178, 35kg lambs to GR Prime for $172, 65kg hoggets to private purchase for $192 & $181, 45kg hoggets to Moniel Shan for $171. Dusty Campbell sold 58.7kg ewe hoggets to restockers for $228, 4tooth ewes to restockers for $228, 42.5kg lambs to Moniel Shan for $187, ewes to Thomas Foods for $180, 35kg ewe lambs to SD Rural for $194, ewe lambs 17.5kg to Mark Palmer for $140 Phil & Gabe Byrnes sold Dorper ewe lambs 41.25 and 39.75kg to GR Prime for $182 and $181, wether lambs 43.3kg to DM Luck for $188, ewes to

Whites Trading for $149 Eric Watts & Robyn Gimm sold Dorset x lambs 60kg to Thomas Foods for $238, 46.25kg to Moniel Shan for $178, ewes to Thomas Foods for $180 John Crombie

sold shorn Merino hoggets 46.1kg to GR Prime for $14 Gradenfloe Past Co sold shorn Merino wethers to Thomas Foods for $174

Louise Campbell sold Dorper x ewes to Thomas Foods for $164 Higgins Family sold Aussie White 4th wethers 73.3kg to Thomas Foods for $230 Rory & Kathy Frost sold Dorper lambs 42.3kg to Moniel Shan for $201, 42.85kg to DM Luck for $199 Kylee Simpson sold Dorper x lambs 56.6kg to Thomas Foods for $219, 40kg to Moniel Shan for $182, 62.5kg hoggets to Take It Easy Meats for $182, ewes to THomas Foods for $204, wethers to Thomas Foods for $200, rams to restockers for $180 Les Holton sold Dorper ewe lambs 40kg to restockers for $198, ewes to restockers for $190and $180, ewe & lamb unit to restockers for $280

Rising and falling at once: wool Continued from back cover The next 3 weeks of sales will be supported simply by the needs of processors covering their mill fodder requirements of the annual recess, but after that, with Europe in full holiday mode, and potentially getting bashed about by the inflation bogey, the export scene may become more difficult. On the other side of the coin, it is not hard to become

enthused about the prospects of merino wool given the swing towards natural, sustainable, and traceable fibres. More and more companies are heeding the call from consumers to explain what is in their products, and share the story behind their production. This is leading to a greater level of compliance in terms of chemical usage, water usage and obviously carbon

footprint, but greenwashing aside, the stories that wool can tell shine a very bright light indeed. Keeping the facts on the table, and complying with the increasing number of requests from retailers and consumers will keep people busy, but sharing the good stories will lead to more garment sales, so the effort will be worthwhile. With more downward pres-

sure on the local currency expected, and the need for mills to keep the pipeline full, the market should remain firm over the next 3 weeks. Post the recess, those who take advantage of the current forward market may be the ones wearing the biggest grins. Picture courtesy of Elders.

COUNTRYJOURNAL

WARWICK INDOOR RECREATION AND AQUATIC CENTRE 29 Palmerin St, Warwick, Queensland 4370 p: 4661 7955 e: wirac@ymcabrisbane.org w: www.wirac.com.au f: /wirac.ymca

COUNTRYJOURNAL

Workshops for restoring the land Krista Bjorn krista@smallnewspaper.com.au

tuart Andrews is returning to the Southern Downs to teach a practical workshop on Natural Sequence Farming hosted by Condamine Headwaters Landcare Group and Southern Queensland Landscapes. “The workshop will discuss water flow, landscape rehydration, erosion, soil management and entail a practical paddock session in the afternoon,” Landcare Coordinator Tanya Jobling said. “Come along for best practice management options for soils, water, pasture cover, overland flow and erosion issues. Morning tea and lunch included.” Mr Andrews is a leading

regenerative farmer who runs Tarwyn Park Training where he shares natural sequence farming techniques. His focus in on rehydration of landscape

and healing land from patterns of distraction and disturbance. There will be two workshops held, one in Clifton and one at Junabee. Single tickets are $30,

Couples tickets are $50. The Clifton Natural Sequence Farming workshop will be held on Thursday 7 July from 9:30 a.m. to 3:30 p.m. at Strong's Farm, end of Telford Rd via Upper Spring Creek Rd, Clifton. The Junabee workshop will be held on Friday 8 July from 9:30 a.m. to 3:30 p.m. at Junabee Hall, 573 Roona Rd, Junabee. The project is supported by Southern Queensland Landscapes through funding from the Australian Government's National Landcare Program. Contact Condamine Headwaters Landcare Group to book tickets. Photo from Condamine Headwaters Landcare Group.

Gov Netting Fund Extended Leonie Fuge editor@thedailyjournal.ink

here is good news for growers on the Southern Downs, especially the apple kind of growers. The Horticulture netting program has been extended and offers more local apple growers help to buy and install protective netting. The program is now available nationally with an extra $35 million invest-

ment. Horticultural netting is essential for protecting apple orchards from the effect of severe weather events, such as hailstorms, which can cause significant damage to a crop. According to Councillor Stephen Tancred, the Southern Downs apple industry is worth "$100m at the farm gate." "Hail netting has turned the apple industry around from one of boom and bust to one that is stable," said Cr Tancred. The local industry employs thousands of people, not to mention the cost of fertilisers and chemicals a healthy crop requires. The councillor said, "The significant investments made by farmers into an apple crop can be taken out in five minutes through a hailstorm." Farmers are always repairing and replacing netting as the impacts of wind, sun and rain deteriorate the netting that has a 10-15-year lifespan. Many Southern Downs apple farmers have already taken

advantage of the netting program. "They have done it," said Cr Tancred. "It was taken up overnight by our farmers." For local farmers who missed the first round of the Horticulture netting program, now is the time for accessing the second round. Along with protecting apple crops from hail events, research shows protective netting helps growers produce better crops, in higher numbers. The nets can also reduce water usage by up to 30%. Farmers are able to apply for grants from the Queensland government. The program will operate until 30 June 2024, or until all the funds are committed. https://www.awe.gov.au/agriculture-land/far m-food-drought/ hort-policy/hort-netting-program

Helen Harm

COUNTRYJOURNAL

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COUNTRYJOURNAL GENERAL KNOWLEDGE CROSSWORD

for a mistake (5) 3 The works of which German operatic composer included Orpheus and Eurydice, Christoph ... (5) 4 What is the art and training of a horse in obedience, deportment etc (8)

12 13

18 19

Arc Arms Ask Ate

24 25 26

5 Which cricket term describes

17 Name the largest river

18 What do we call a large

a set of six bowls (4) Who are employed to tend horses (6) Name the capital of Turkey (6) What is a supporter or an associate (4) Name the well-known NZ operatic soprano Dame Kiri ... (2,6) Which metallic element has the symbol Fe (4)

7 12 14 15

Can Cat Eat Elf

male kangaroo (6)

20 Which term applies

to tests (5)

21 What is a daily record of

one’s experiences (5)

23 Name a renowned Australian

bushranger Ben ... (4)

CLUES: Cast ballots (5) Church council (5) Completed (3) Ladies (5) Negative prefix (3) Parliamentarian (7) Saveloy (sl.) (3) Spiced sausages (7) Synthetic fibre (5) Unused (3)

BIYWORD

DOWN 1 Head honcho 2 Biblical preposition 3 Flower stalk 4 Wish

W O D M I S E D N

Solve the crossword. Each answer has four letters. ACROSS 1 Scrub 5 Aware of 6 Footfall 7 A few

K:16, L:3, M:12, N:1, P:8, T:2, U:24

026

I L N N N N

A A D D E E

O O O R S S

S S T V W Y

SOLUTIONS

026 S E N A T O R

QUICK THINK

026

Seed Sky Sour

Build it yourself using the clues and each of the twenty-four letters once only to form ten words: five across and five down. A key word (bold clue) builds on the letter set in the grid.

are shown in the right-hand cells. Create remaining values using clues in centre cells.

SUDOKU

Faster Fed Guard Key

BIYWORD

E-QUATIONS

036 Some values are in the right hand cells. Create remaining values using Letters A to Z have a number value. Some clues in centre cells.

Y D E F G G

In 10th century Persia, the Grand Vizier Abdul Kassem Ismael so loved his private library that he kept it close, even while travelling. A caravan of 400 camels, almost 1.5km long, carried the precious 117,000 volumes. And the camels were trained to walk in alphabetical order!

Letters have a number value

P×T N+T U-M K÷K U÷L L-N L×P

R E L Y U C

CURIO

in the world (6)

E-QUATIONS 7

K L M N P T U

U E K S A A

Find the following words in the grid. They may be read in any direction, even diagonally. Some letters are used more than once.

5 6 7 SUDOKU

DOWN 2 Name another term

O S T C R N

CROSSWORD

S M R A D R

O E V E A R

G A E R E N D O K C O M A S M R E S I A N R O G E N D A X I V A T A R M R S S A Y S

F A S T E R

R T E A K A O N A A W A

026

B E G G E D R L R G R O U S E O C S D R A K E S L A L G D A Y B R E M O C A B O C H Z M A C O L E S L N R L

QUICK THINK ACROSS: 1 Bush, 5 Onto, 6 Step, 7 Some. DOWN: 1 Boss, 2 Unto, 3 Stem, 4 Hope.

10 11 13

150-026

to have done what (6) What is an epithet of respect prefixed to the name of a member of the clergy (8) Which colloquial term implies that something is very good (6) What are malignant tumours (8) What are male ducks called (6) Name a bore whose shaft penetrates an aquifer, and in which the water level rises above ground by hydrostatic pressure (8) What is an alternative term for dawn (8) What is a program or list of things to be done, discussed, etc (6) Which precious stone is of convex hemispherical form (8) What describes the incarnation of a god (6) Name a dressed salad of finely sliced white cabbage (8) What are examinations of mineral ores to determine their constituents (6)

E-QUATIONS K:16, L:3, M:12, N:1, P:8, T:2, U:24

MINI WORD FIND

Y D E F G G

ACROSS 1 To have sought alms is

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MINI WORD FIND F S O U R A M S E E S R T K L T A C S Y E D R A U R R N A C

COUNTRYJOURNAL “You can’t unscramble eggs” is the best quote I can remember in my 45 years involvement in local government. My major involvement has been as a ratepayer but I reported on councils for a short time and for 12 years was a councillor of the Rosenthal Shire Council which existed two shire amalgamations ago. After the amalgamation of Warwick City, Glengallan, Allora and Rosenthal shires, former Rosenthal Mayor Jim Mitchell was asked by the Daily News about going back to the former four shires and his response was simply “you can’t unscramble eggs”. He was one of the greatest opponents of the amalgamation along with Allora Mayor Jim Deacon and Allora anti-amalgamation leader Debbie Smith but for Jim Mitchell, once it happened there was no going back. For those new to the area, some years later the former Stanthorpe and Warwick shires were amalgamated into Southern Downs Regional Council. I was proud of my three quotable quotes from my 1979-1991 era but they didn’t compare with the one from Jim. When the amalgamation debate was going on, Tom Burns was the ALP Minister for Local Government and he was overseeing the amalgamation of local authorities.

The Long Paddock with Gerard Walsh

I said at one meeting “don’t let Tom burn Rosenthal” and those words were printed on the car sticker that was distributed in the shire. At the time, I did question whether Rosenthal was big enough to stand by itself but the people opposed amalgamation and you are

Think about it, most argument are about land, love and money. At one Rosenthal meeting, we were talking about the then State treasurer David Hamill and road funding and I made the comment that “he might have been a Rhodes Scholar but isn’t a roads scholar”. Rhodes Scholars were university students of outstanding ability, including former Prime Minister Bob Hawke. Interesting I haven’t heard a word about Rhodes Scholars for a long time.

Remembering Cec

electe d to do what the people want. At one meeting at Rosenthal, there was a lot of angst from two people about a reserve of a few acres on Pikedale Rd and I said “all argument are about land, love and money” There wasn’t much love in the argument and the area was not enough to worry about from a financial perspective but it was all about land.

Last week, the Southern Downs lost former Glengallan Shire Council chairman Cec Jamieson at the age of 93. His wife Gwen died two days earlier at age 91. Cec was a true gentleman and chairman for more than a decade and was interested in everything to do with the council. He and Gwen moved from St George to a property at Killarney and he was a regular at the cattle sale. Cec stood for the National Party in the seat of Rankin and missed out by 600 odd votes of unseating sitting member David Beddall from the ALP in the

1980s. Gwen was a great supporter to him in that campaign. Rankin at the time went from Warwick and Clifton east to Inala and Logan City. Both were involved in numerous community activities in the Killarney and Warwick areas, the sort of volunteers every community needs.

Vale Mike

It was with great sadness I read in the Stanthorpe Record about the passing of Mike Bathersby. He was a gentleman of the highest order and served his community as a solicitor and long-time volunteer. At one stage, he was on the Stanthorpe Shire Council and was the shire representative on the Area Committee for Recreation. I was the Rosenthal Shire Council representative and it was at that time I built a great respect for Mike. That was an era when a local committee ran Camp Leslie but it was later taken over by the State Government with little involvement from the local area. Two Warwick Shire Councillors on the committee at that time were Cec Watts and Cliff Farrell. Mike’s community involvement included a long time on the St Vincent de Paul Society which I guess meant distributing a lot of blankets to needy families during cold Stanthorpe winters.

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COUNTRYJOURNAL

Rising and falling at once: wool Bruce McLeish Elders

currency driven outcome saw the Australian wool market decline in USD terms but rise strongly in local currency terms. Given the massive drop in the value of the Australian Dollar just before sales commenced, prices bounced quite strongly on Wednesday with rises of 25 to 60 cents for most merino fleece categories. Only about half of the currency move was factored into prices with many sales having been made at the 'old' rate of .7100 or thereabouts. Indent buyers, operating on a spot exchange rate of around .6900 were able to operate much more aggressively. The second day of selling on Thursday saw topmakers and exporters kick into gear and the market closed 20 cents dearer in USD terms. So, for the week the Australian market closed 30 cents higher overall, with merino fleece types up by 60 cents or more, and the crossbred and carding sectors dragging the average back as they were unchanged at best. In USD terms the movement for the week was down 12 cents, and again merino fleece types were unchanged or slightly positive, while crossbred and carding wools provided a drag on the overall market indicator. Since sales concluded the currency volatility has continued, although mostly the wrong way for Australian exporters, which

is limiting the amount of business consequently being written. Furthermore, exporters are wary of selling too much quantity given the restricted offering available next week as Fremantle again takes a week off. A national selection of 30,000 bales, of which 10,000 will probably crossbreds and cardings, means not a lot of good spec merino fleece is available. So, even though the phones are not running hot at present, there will be enough orders in the market to keep things fully firm for merino fleece, and hopefully just enough people chasing value and mill filling opportunities for the crossbred and carding sectors to maintain thereabouts in the coming week. Inflation concerns and central bank activities played havoc with the currency and equity markets during the week and affected most commodity markets to some degree or another. The largest move in the wool market,

aside from Fremantle which was playing catch up after having a week off, was the 20-micron indicator in Melbourne which jumped by nearly 6% for the week in Australian Dollars, but only 2.3% in USD terms. Cotton prices fell heavily - about 6.5% - as the market worried what higher interest rates would do for demand. Wool prices have not risen anywhere as much as cotton over the past 2 years, so possibly do not need to react as much to concerns about demand, but it does raise a potential red flag for the wool industry going forward. The market which is currently driving much of the processor demand is Europe. Chinese topmakers, those with an export focus, are all very busy at present producing wooltops and yarn for this market, whilst those solely focussed on domestic production are stalling. If the current inflation concerns do begin to bite and dampen

demand in the European market, these export orientated mills will pivot as usual back to the domestic market. However, at the moment the Chinese domestic garment producers are reporting orders for the local market are only about 30% of normal activity. The ongoing covid issues in China are making everyone nervous. After 2-month lockdown Shanghai residents are again facing further restrictions and would be getting well and truly sick of the continuous testing regime. Complaining about it is not going to change it, given the government's policy, but the longer it drags on, the more serious the economic damage, and presumably the damage to the consumer confidence as well. Some domestic mills are looking, perhaps wistfully, for some government stimulus. None has yet been announced, and the Chinese government is not exactly flush with cash, but the textile industry in China is a very large, very important industry, so no doubt Beijing will be watching developments closely. Should said stimulus arrive, the domestic mills can quickly gear up production, and meet the retail selling season, and of course uniforms are always an easy lever for the Chinese government to lean on. If, however the Chinese domestic processing industry is left to its own devices, demand for Australian wool may begin to falter in August. Continued on page 6...

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