In its second edition, AuctionsPlus “The Gavel” has asked Australian livestock producers how they are feeling about the current situation, concerns for the season ahead and what they are doing to deal with future production issues.

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Key findings from 2022 AuctionsPlus “The Gavel”

• 89% of livestock producers expect to have their business negatively impacted by inflation.

• 98% of livestock producers expect increased costs will impact their business, with 86% anticipating squeezed margins and 67% facing increased staffing costs.

• 84% of livestock producers are concerned about access to skilled labour, with 65% responding that they have been impacted by the labour market in past year.

• 77% of respondents stated they are doing as much as they can to reduce the carbon footprint of their operations.

Since the breaking of the drought through large swathes of Eastern Australia in early 2020, Australian livestock producers have been enjoying one of the most profitable periods on record. Heading into the third consecutive La Nina influenced wet winter, the run of excellent livestock returns has enabled producers to start recovering from the drought, investing in capital and genetic improvements that will underpin production cycles for the coming decade.

However, the productivity and financial gain made in the past thirty months is at risk of being squashed. Inflationary pressure on costs, scarce inputs and an extremely tight market for skilled labour is placing additional pressure on producers future planning.

With the events that have shaped global markets and sentiments since the start of 2020, from a global pandemic to the Ukraine war, the flow-on effects to Australian producers have been very volatile. As supply chain issues continue to plague on-farm operations, the ability to secure labour continues to choke potential – all at a time when Australian producers are desperate to capitalise on favorable seasons to offset soaring costs.

To download last year's' The Gavel' click here.