grain processors, page-8

As grain, fertiliser and fuel prices rise this adds pressure to livestock margins and in many cases makes it unprofitable as in the case with feedlotters. The current problem is most of the prices currently being offered for livestock produce, which for us is meat and wool, have either been stagnet or risen only slightly. At the same time grain prices have risen up to 70%. Every mixed farming enterprise has done the exercise of gross margins per hectare between livestock and grains and I can tell you livestock margins simply do not stack up with current grain prices. So the grain inflation has had a large impact on livestock margins. Livestock is not being displaced due to lack of grain availability, more so the cost of the grain used to feed them. I see the beneficiaries of the current scenario as the pastoral companies that are not reliant on grain to finish stock.