Another successful Risk Management Day for Double B

May 25, 2009

“Interest rates will bottom out at the end of 2009 and will start to increase over the next two years by 2% or more,” according to Emeritus Professor John Chudleigh, who recently addressed Double B Beef’s Risk Management Day, held in Bingara.

Professor Chudleigh who is a past Principal of Orange Agricultural College gave a wide ranging address, covering the world financial position as well as outlooks for the commodities important to beef producers in the region.

One of the negatives facing beef cattle producers, he told the gathering, is that while world consumption of meat, including poultry and pork has increased by a total of 24% over the last ten years, beef consumption has fallen by 7.6%. He suggested that both world production and world consumption of beef is expected to contract in the next 12 months, citing the example of Japan, where the average consumption of beef is 9kgs per person, which is a decrease on the 12kgs the population was consuming in 2000.

Professor John W Chudleigh (left) and Double B Beef president Will Cannington

With regard to sheep meats, the outlook is more positive. Professor Chudleigh said that the Middle East is “scared stiff” that they won’t be able to source enough lamb and mutton for their people. He said they want security of supply over all else and are very concerned about the drop in Australian sheep numbers.

Professor Chudleigh also suggested that there won’t be much growth in alternative energy sources until the price of oil goes up to around $70 per barrel. He thought this would be achieved, which will then permit the alternatives some market share.

Double B Beef hosts the Risk Management Day annually. President, Will Cannington said “the day has again provided cattle producers with useful information on which to base some of their management decisions. We were very fortunate to have John Chudleigh as the keynote speaker, who gave an excellent address. He was followed by a good range of speakers, who kept participants engaged and thinking about their businesses!”

Other speakers on the day were Mr Mark Morton, CEO of Practical Systems in Armidale, who discussed how to provide auditable quality assurance for producers’ sale cattle; Marie Ward who has a family counselling practice in Inverell; Bill Mitchell from Platinum Agribusiness who told the gathering about his forward selling contracts for beef and Andrew Wilkie from Objective Livestock Marketing who spoke about the importance of the relationship between beef producers and their marketer.