Mecardo Blog

How do you reduce price volatility in wool?

Posted by Matt Dalgleish on 3 October 2016

This blog article takes a look at managing downside price risk exposure for a wool grower using forward contracts and minimum price contracts.

There are two predominant strategies to reduce the effect of price volatility when selling physical wool for a date in the future. These are by using a forward contract or using a minimum price contract (MPC).

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Topics: Wool market / wool price, Wool industry

Mecardo are on tour!

Posted by Andrew Whitelaw on 5 August 2016

The GRDC are running a series of farm business updates during August and September. Mecardo are excited to have been invited along to present at events across the east coast. 

The GRDC Farm Business Update provides a unique forum for growers and advisers to learn from, and network with, leading industry professionals. 

The Mecardo team will be contributing the first presentation for each day. Our presentation will be titled 'Getting a gauge on the market', and will be used to set the scene for the following presenters. 

We recommend attending these events, as it is a good opportunity to get some new insights

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As the EYCI advances are restockers getting grass fever?

Posted by Robert Herrmann on 5 July 2016

The EYCI has hit an all-time high of 660.50 cents per kg cwt; this brings to the fore the question of where is the top of the cattle market? Has the market peaked? The old adage of “it takes high prices to fix high prices” starts to resonate.

We have also been around long enough to see frenzied bidding when conditions are good and grass is abundant – grass fever!

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Topics: Australian cattle industry, beef market

Dairy farmers left holding the pail

Posted by Robert Herrmann on 30 June 2016

In rural and mainstream news services there is a regular stream of stories recounting the disastrous situation dairy farmers find themselves in as a result of the “claw-backs” advised by the milk processors last month.

Unfortunate as it is, these claw-backs are part and parcel of the milk supply agreements most of the dairy farmers in Australia commit to. In this article we aim to give an insight into dairy contracts for those outwith the dairy industry, and why most of the risk is held by the farmer.

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Topics: dairy

Is Brazil a real threat to Australian cattle markets?

Posted by Augusto Semmelroth on 25 May 2016

Australia and Brazil are undeniably the two “giants” in the global beef trade. Together, both markets account for 35-45% of world trade, and to some extent, dictate the supply and price of beef for available for international customers. With that in mind, our analyst in Brazil Augusto looks into whether the two compete head-to-head for market share.

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Topics: Cattle market / cattle price, beef price, beef market

How to use "one cancels other" wool orders.

Posted by Matt Dalgleish on 23 May 2016

The purpose of this blog is to explain more about using “one cancels other” or OCO orders on the Riemann wool forward market with a particular focus on the 19 and 21-micron contracts. As part of the blog we will also undertake analysis of the basis between 19 and 21-micron classes to outline the seasonal movement in this basis, including how/why the basis has narrowed over time. 

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Topics: Wool market / wool price, Wool industry

2016/17 Federal Budget - Agriculture highlights

Posted by Andrew Whitelaw on 4 May 2016

The treasurer Scott Morrison released the federal budget last night. It was largely bereft of any major surprises with hints in the days leading up to the budget of it being in favour of small businesses and middle income earners.

In this blog post we have highlighted some of the budget items impacting on agriculture and agribusiness.

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Topics: Agriculture

How to deal with animal activists: A lesson from the egg industry

Posted by Robert Herrmann on 20 April 2016

The egg industry is a good example in how to deal with Animal Activists, and perhaps it can provide some ideas for the Australian wool industry around how to respond to the mulesing debate.

The production of cage eggs and the subject of mulesing have been easy targets for the radical activists, however the end result to each industry is starkly different.

When producers are asked, both industries are adamant that their practices (cages and mulesing) are not only humane, but actually improve the welfare of the bird/sheep.

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Topics: Wool industry, Australian wool industry, animal rights

5 reasons why transparency is important in the cattle industry

Posted by Matt Dalgleish on 14 April 2016

The Australian Competition and Consumer Commission (ACCC) announced in early April of a market study into the cattle and beef industry to be undertaken this year. Issues covered by the study are wide ranging but a particular aspect of the investigation that caught our eye was the focus on greater transparency with regard to profits and margins along the beef supply chain.

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Topics: Australian cattle industry, beef price

Why isn't collaboration simple?

Posted by Andrew Howard on 30 March 2016

This guest blog has been provided by Andrew Howard, Executive Officer at Grampians Pyrenees Primary Care Partnership. In this blog Andrew discusses his recent experience collaborating with farmers through community projects targetting drought affected farmers in Victoria.

I think we've been watching too much Utopia, the popular ABC TV satire exposing the craziness of management speak and processes that have infiltrated so much of our professional lives (particularly if you work in, or are associated with, the public sector, or at least so it seems)...

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Topics: Community

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