The Bull Market

Submitted: Saturday, Mar 21, 2009 at 11:32
ThreadID: 67040 Views:2114 Replies:6 FollowUps:10
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It seems that there's still a lot of money around. I wonder how many cattle ststion managers will be changing jobs when this lot's over ?

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Reply By: Member - Tony B (Malanda FNQ) - Saturday, Mar 21, 2009 at 12:11

Saturday, Mar 21, 2009 at 12:11
Never understood the mentality of Cattle Barron's! When you work out how many cows you have to sell to match the dollars you pay for the station, how is it possible to ever own the station or pay for the investment? Must be a tax dodge for the rich!

They can have it, we will stick to running 4 head of cattle! Cheers Tony.
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Follow Up By: Member - Footloose - Saturday, Mar 21, 2009 at 12:20

Saturday, Mar 21, 2009 at 12:20
Good thinking 99 ! :))
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Reply By: GoneTroppo Member (FNQ) - Saturday, Mar 21, 2009 at 12:22

Saturday, Mar 21, 2009 at 12:22
We run cattle in a small way in FNQ.
In talking to the people in the industry the consensus of opinion is "totally out of control" and "a financial disaster waiting to happen".

All it really is, is the gamblers that brought us the financial system collapse looking for the next bubble to build.

It is not possible for those station to be viable businesses at half what is being paid for them.

The only sad thing is that when the bust comes it will also take with it genuine operators who went into it to grow food.

Give it a few years and you'll be paying $30 kg for hamburger mince.
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Follow Up By: Member - Footloose - Saturday, Mar 21, 2009 at 12:29

Saturday, Mar 21, 2009 at 12:29
Are they buying up the leases or the actual freehold land ?
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Follow Up By: GoneTroppo Member (FNQ) - Saturday, Mar 21, 2009 at 13:05

Saturday, Mar 21, 2009 at 13:05
Most stations are pastoral leases, sometimes there is some small freehold land which is where homesteads and station buildings and other infrastructure is located.
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Reply By: Member - Willie , Sydney. - Saturday, Mar 21, 2009 at 13:14

Saturday, Mar 21, 2009 at 13:14
Footy ,

When you see hedge funds investing, you know that there will be a big bubble involving pain for someone when it bursts.

To make sure that your post is not wiped for beng OT, you should perhaps have mentioned the boost to 4Wd sales these investments will make and how this increased turnover will benefit everyday 4Wd users by blah blah blah.

I realised last week when I made the post about the breaking the world long distance walking record (whilst employing a hula hoop), I should attached a photo the lady in question, standing in front of her much loved family 4WD.

Willie
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Follow Up By: Member - Footloose - Saturday, Mar 21, 2009 at 13:29

Saturday, Mar 21, 2009 at 13:29
Good point, but I can hardly see cattle ststions as being divorced from 4wding ? After all, if it weren't for the "beef roads" then ...
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Reply By: Bob of KAOS - Saturday, Mar 21, 2009 at 15:54

Saturday, Mar 21, 2009 at 15:54
It certainly is big business. Have a look at AACo's spread
This map isn't up to date as they have acquired Litchfield and Tipperary in the NT, and I think unloaded some in QLD.
Running cattle would be marginal unless you had the benefits of massive scale - like 200,000 hectares and more. That puts individual ownership into very rare company, although some large properties do remain in family hands.
Owning properties in different climatic zones enables you to move cattle to where the feed is, and allows a property to lie fallow during drought years. If you owned only one property, a bad year could wipe you out.
Its like a lot of things. Consumers demand low prices, so Coles and WW screw producers. Small farms become uneconomic, forcing amalgamations and corporate takeovers.
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Follow Up By: Willem - Sunday, Mar 22, 2009 at 09:36

Sunday, Mar 22, 2009 at 09:36
IN 2007 whilst returning home from Darwin via some backroads, we drove from Elliott NT to Bedourie, Qld. AAACo stations flanked the road for the entire distance of some 1600km
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Reply By: Willem - Sunday, Mar 22, 2009 at 09:44

Sunday, Mar 22, 2009 at 09:44
Hi Footy

It is almost like Vestys re-incarnated.

Yeah, the players at the Big End of town still have the dollars. But companies who are not committed Pastoralists may fail in the future. In the meantime however money might talks. Where will it all end? Probably China will buy up everyone and control the world by stealth.

As an aside I see Ken warriners name mentioned in the article. I met him a couple of times in the Kimberley in the early 80's. A like-able bloke and he has done well for himself.

Cheers

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Follow Up By: Member - JohnR (Vic) - Sunday, Mar 22, 2009 at 22:14

Sunday, Mar 22, 2009 at 22:14
Bro, he did well with his partnerships - Ken that is. He came here a few years ago looking at EID systems with another friend. Had dinner with them one night.

It costs a hell of a lot less to run cattle up North, than down South capital wise. That was why KP and Ken were in it. Son of KP is out for losing it.
Cheers,
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John

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Follow Up By: Member - Footloose - Monday, Mar 23, 2009 at 08:24

Monday, Mar 23, 2009 at 08:24
John, having to decipher that lot gave me a headache. Some of us city slickers don't read The Land , much less the Financial Times LOL
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Follow Up By: Member - JohnR (Vic) - Monday, Mar 23, 2009 at 08:47

Monday, Mar 23, 2009 at 08:47
EID = Electronic ID systems for cattle, with registrations to computer. Just like an electronic form of a roll call every time the animals pass the reader. You can then assemble heaps of information, parentage, traits, yields, feed conversion. Sire proving and blood lines. Have been running them for five years here now.

Ken, was a business partner with Kerry Packer in Consolidated Pastoral. They had an investment near here and their local consultant is a friend. I had heard KP named as eff'n KP by the previous owner.

Another friend who managed the property tells a story about KP arriving by helicopter one day to look over his investment. It couldn't land near the homestead, so he was collected in a calf trailer, pulled by a Honda quad bike. They are renown for spraying whatever comes off the wheels over whatever is behind. KP was covered in spattered cow bleep . Nice thing to do to your boss.
Cheers,
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John

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Follow Up By: Member - JohnR (Vic) - Monday, Mar 23, 2009 at 08:48

Monday, Mar 23, 2009 at 08:48
Sorry, ten years plus. How did 'five' get there
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Follow Up By: Member - Footloose - Monday, Mar 23, 2009 at 08:53

Monday, Mar 23, 2009 at 08:53
Tis Ok John, I knew what you meant ...eventually LOL RFEID tagging has been around almost as long as KP.
Just worked out that JP has my initials....pity I don't have his $$ to lose LOL
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Reply By: Member No 1- Monday, Mar 23, 2009 at 08:12

Monday, Mar 23, 2009 at 08:12
they dont give a toss when its not theirs....the buyers are funds using someone elses money...i can do that just as well as they do........trust me..:))))
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