NATIONAL SHEEP & WOOL UPDATE JULY 2015

NATIONAL SUMMARY JULY 2015 Sheep producers started 2015 with hopes of rebuilding stock numbers after two consecutive years of high slaughter rates. However, lower than average rainfall and strong prices have so far limited stock rebuilding and high slaughter rates have continued. Strong export demand, declining flock size and expectations of a shift to flock rebuilding are likely to keep sheep and lamb prices above average. The wool market has enjoyed a recent rally and the Eastern Market Indicator finished the financial year at 1263 c/kg, up 24%. Wool prices are expected to remain supported given the declining flock size (estimated to have just fallen below 70 million), a lower Australian dollar and continued export demand.

Weather Observed rainfall April-June 2015

Rainfall outlook July-September 2015 Rainfall decile ranges

Growing season rainfall

Source: Bureau of Meteorology (BoM)

Source: BoM

Production Wool production

120

700

100

600

80

500 400

60

300

40

200

20

100 0

Wool produced (‘000 tonnes)

800

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Sheep meat production and flock size

0

Meat Production (LHS)

300 250 200 150 100 50 0

Flock (RHS)

24 micron

Data: Australian Wool Testing Authority (AWTA)

Domestic demand Consumption per person (kg)

Per capita consumption of sheep meat is declining in Australia 120

30%

100

25%

80

20%

60

15%

40

10%

20

5%

0

0% 1975 Beef and Veal

1980

1985 Lamb and Mutton

1990

1995 Pig Meat

2000 Chicken Meat

Data: Australian Bureau of Agricultural and Resource Economics & Sciences (ABARES)

2005

2010

2015

Sheep Meat % Total Consumption (RHS)

Total domestic consumption of sheep meat is static, being supported by population growth yet simultaneously under pressure from a decline in the amount of sheep meat consumed per capita.

Export performance Australian dollar value Total lamb, mutton and live sheep exports increased in 2014 and exports have remained strong in 2015. Lamb exports to the USA have increased significantly, helped by high meat prices in the USA and a lower Australian dollar. Nevertheless, exports are expected to slow if supply tightens. Wool exports decreased by 10% in 2014, with exports to China down 14%. However, demand from China increased during the first months of 2015, up 22% compared to this time last year.

$

July 2013 $0.92USD



July 2014 $0.95USD



July 2015 $0.77USD

Top 3 sheep meat export markets 600

2000

80%

1800

500

20%

400

15%

300 10%

200

5%

100

70%

1600

Value of exports ($m)

Value of exports ($m)

Top 3 wool export markets

25%

60%

1400

50%

1200 1000

40%

800

30%

600

20%

400

10%

200

0

0%

0

2012 2013 2014 2012 2013 2014 2012 2013 2014 USA China UAE USA Lamb (LHS)

China

UAE

Mutton (LHS)

Live (LHS)

0% 2012 2013 2014 2012 2013 2014 2012 2013 2014 China India Italy

2014 Export Share

China < 19mcn (LHS)

Export Share (RHS)

India

20-23mcn (LHS)

Italy

24-27mcn (LHS)

2014 Export Share

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: Global Trade Information Services (GTIS)

Price Lamb and mutton price

Eastern Market Indicator (wool)

1500

700

1400

600

1300 1200 c/kg CWT

c/kg CWT

500 400 300

1100 1000 900 800

200

700 100

600 500 2010

0 2010

2011

2012 Trade Lamb

2013

2014

2015

2011

2012

2013

2014

Mutton

Data: Meat & Livestock Australia (MLA)

Data: Australian Wool Exchange (AWEX)

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

576

541

485

543

426

Mutton 18-24kg

392

351

313

385

226

Eastern Market Indicator (wool)

1221

1018

1088

1197

992

Data: MLA, AWEX

2015

NEW SOUTH WALES JULY 2015 New South Wales received good autumn rainfall which has helped recent pasture growth, however, the forecast for winter and spring is not as favourable as the 2015 El Niño strengthens. Sheep meat production continues to increase with current season lambs in good condition following the favourable autumn break. Wool production has continued to decline despite gains in fleece weights. It is expected that the number of bales offered will continue falling, however recent price increases may slow this trend.

Weather Observed rainfall April-June 2015

Rainfall outlook July-September 2015 Rainfall decile ranges

Source: BoM

Source: BoM

Sheep meat production and flock size

Wool production and average micron

35 150

30 25

100

20 15

50

10 5

0

630

21.2

620

21.0

610

20.8

600

20.6

590

20.4

580

20.2

570

20.0

0

Meat Production (LHS)

Flock (RHS)

Data: ABS

From the field Significant rain in southern New South Wales has cemented a strong autumn sowing after many areas experienced a dry summer. This rainfall has improved stock water stores that were under threat. A cold winter in the south east is slowing production, however, ground cover is good after a very wet summer. Sheep prices, particularly heavy export lambs continue to please producers. Farmers who were well stocked leading into Christmas have seen their business well positioned. Farmers are now monitoring crops and supplementary feeding in preparation for a good spring. Trent Bullock – Rural Bank, New South Wales

Bales Offered (LHS)

Data: AWTA

Ave. Micron (RHS)

micron

40 Bales offered (‘000)

200

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance Demand for lamb and mutton increased in major export markets in 2014 with the trend continuing in 2015. Lamb exports saw the largest movement, increasing by 43% from 2013 with greater demand from both the USA and China. Wool exports decreased in 2014 but regained momentum in early 2015.

Top 3 sheep meat export markets

Top 3 wool export markets

140

25%

120 100

15%

80 60

10%

40 5%

20 0

80% 70%

500

20%

60%

Value of exports ($m)

Value of exports ($m)

600

400

50%

300

40% 30%

200

20%

100

10%

0

0%

0% 2012

2012 2013 2014 2012 2013 2014 2012 2013 2014 China USA UAE China

USA

Lamb (LHS)

UAE

Mutton (LHS)

Live (LHS)

2013

2014

2012

China

2014 Export Share Export Share (RHS)

< 19mcn (LHS)

2013

2014

2012

Italy

20-23mcn (LHS)

2013

2014

China

Czech Republic

24-27mcn (LHS)

Italy

Czech Republic

2014 Export Share

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: GTIS

Price Lamb and mutton price

Northern Wool Price Indicator

700

1700

600

1500 1300

c/kg clean

c/kg CWT

500 400 300

1100 900

200

700

100 0 2010

2011

2012

2013

Trade lamb

2014

2015

500 2010

2011

2012

2013

2014

Mutton

Data: MLA

Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

575

534

490

543

415

Mutton 18-24kg

395

353

317

397

223

Northern Indicator (wool)

1241

1027

1118

1246

1008

1488

1224

1520

1696

1281

1303

1130

1191

1343

1075

1055

813

785

848

686

Fine wool - 17µ Medium wool - 20µ Broad wool - 26µ

Data: MLA, AWEX

2015

QUEENSLAND JULY 2015 Drought conditions continue to affect the sheep industry in Queensland with below-average rainfall in most areas of the state. In response to challenging conditions, producers continue to sell stock. This has led to an increase in the supply of lamb and mutton and a further decline in the state’s sheep flock. Despite wool prices increasing in recent months the smaller flock and poor seasonal conditions have led to lower wool production as the number of bales offered continues a long-term downward trend.

Weather Observed rainfall April-June 2015

Rainfall outlook May-July 2015 Rainfall decile ranges

Source: BoM

Source: BoM

Sheep meat production and flock size

Wool production and average micron

25

5

20

4

15

3

10

2

5

1

0

0

Meat Production (LHS)

20.4

80

20.2

70

From the field Queensland is facing a challenging late winter and spring as drought conditions persist. As the country becomes bare of pasture with only limited relief from recent rain, production is down and flock numbers are low. Producers have been shearing early, selling surplus stock and trying to maintain core breeders by seeking agistment or feeding cotton seed. Luckily the markets have remained strong in both re-stocker and mutton. Farmers will be looking for summer rains which will allow them to begin rebuilding flock numbers.

20.0

60 50

19.8

40

19.6

30

19.4

20 10

19.2

0

19.0

Flock (RHS)

Data: ABS

Peter Sealy – Elders, Queensland

90

Bales Offered (LHS)

Data: AWTA

Ave. Micron (RHS)

micron

6 Bales offered (‘000)

30

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance After a slow 2014 where wool exports halved, 2015 has seen some improvement, up 21% on this time last year, with exports to China increasing by 28%. The upward trend in lamb exports continued in 2014 with a 50% increase from 2013. This was largely driven by trade to the USA which doubled from 2013. Mutton exports to China declined by 21% in 2014 but was offset by significant increases in exports to the USA and Russia. Top 3 sheep meat export markets

45 40

30

30%

35

25%

30 25

20%

20

15%

15

10%

10

5%

5 0 USA Mutton (LHS)

Russia Live (LHS)

80% 70% 60%

15

50% 40%

10

30% 20%

5

10%

0

2012 2013 2014 2012 2013 2014 2012 2013 2014 China USA Russia China

90%

20

0%

Lamb (LHS)

100%

25 Value of exports ($m)

Value of exports ($m)

Top 3 wool export markets

35%

0% 2012 2013 2014 2012 2013 2014 2012 2013 2014 China India Italy

2014 Export Share Export Share (RHS)

China < 19mcn (LHS)

India

20-23mcn (LHS)

Italy

24-27mcn (LHS)

2014 Export Share

28+mcn (LHS)

Data: GTIS

Data: GTIS

Price Northern Wool Price Indicator

1700 1500

c/kg clean

1300 1100 900 700 500 2010

2011

2012

2013

2014

2015

Data: AWEX

Northern Indicator (wool) Fine wool - 17µ Medium wool - 20µ Broad wool - 26µ Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

1241

1027

1118

1246

1008

1488

1224

1520

1696

1281

1303

1130

1191

1343

1075

1055

813

785

848

686

Export Share (RHS)

SOUTH AUSTRALIA JULY 2015 Seasonal conditions in northern South Australia have been favourable while a dry autumn in the lower south east has been challenging for farmers. High turn-off rates are expected to continue for now in response to low rainfall and subsequent poor pasture growth. A recent increase in wool prices has led to an increase in the number of bales offered. These prices are expected to hold due to lower wool production.

Weather Observed rainfall April-June 2015

Rainfall outlook May-July 2015 Rainfall decile ranges

Source: BoM

Source: BoM

13

120

12

110

11

100

10

90

9

80

8

70

7

Meat Production (LHS)

230 225 220 215 210 205 200 195 190 185

Flock (RHS)

Data: ABS

From the field Reasonable rainfall in the north east and Flinders regions have put stock in very good condition and led to lambing rates of 100%. In contrast, a poor spring and autumn break in the south east means body weights and lambing percentages are both down and many producers are still supplementary feeding. Some processors have reduced killing capacity in recent weeks, however good hook prices are still being received. Current wool prices are high, slowing the recent trend to move to meat sheep. Despite the threat of an El Niño, the industry has a positive outlook, with producers in a strong position after a good 2014. Simon Dundon - Rural Bank, South Australia

Wool production and average micron

22.0 21.8 21.6 21.4 21.2 21.0 20.8

Bales Offered (LHS)

Data: AWTA

22.2

Ave. Micron (RHS)

micron

Sheep meat production and flock size

Bales offered (‘000)

130

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance Lamb, mutton and live sheep exports from South Australia increased in 2014 with greater demand for lamb and mutton coming mostly from the USA. Although lamb exports have continued to rise in 2015, demand for mutton has declined. Exports of wool from South Australia increased slightly in 2014 with a 3% increase to China and a 32% increase to India. Demand from China and India has continued to increase in 2015. Top 3 sheep meat export markets

Top 3 wool export markets 45

35% 30%

30%

15

10%

5

5%

0

USA

China

Lamb (LHS)

UK

Mutton (LHS)

Live (LHS)

China

2014 Export Share < 19mcn (LHS)

Export Share (RHS)

India

20-23mcn (LHS)

Thailand

24-27mcn (LHS)

Thailand

2012 2013 2014 2012 2013 2014 2012 2013 2014 USA China UK

India

China

0%

2014

0% 2012

0

20%

10

2013

50

20

2012

10%

40%

2014

15%

100

25

2013

20%

2012

150

50%

30

2014

25%

60%

35

2013

200

70%

40

Value of exports ($m)

Value of exports ($m)

250

2014 Export Share

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: GTIS

Price Lamb and mutton price

700

1400

600

1300

500

1200 c/kg clean

c/kg CWT

Southern Wool Price Indicator

1500

400 300

1100 1000 900 800

200

700

100

600 500 2010

0 2010

2011

2012 Trade lamb

2013

2014

2015

2011

2012

2013

2014

Mutton

Data: MLA

Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

533

537

476

528

413

Mutton 18-24kg

323

343

290

364

193

Southern Indicator (wool)

1207

1014

1077

1199

959

1456

1223

1477

1664

1256

1308

1129

1183

1329

1066

1056

813

781

857

667

Fine wool - 17µ Medium wool - 20µ Broad wool - 26µ

Data: MLA, AWEX

2015

TASMANIA JULY 2015 Most regions of Tasmania received below average autumn rainfall and dry conditions are forecast to extend through winter and into spring. These conditions have led to poor pasture growth, prompting some farmers to sell stock. Supply is expected to tighten due to low stock numbers, putting upward pressure on prices. Fleece weights are expected to be lower due to poor supply of feed.

Weather Observed rainfall April-June 2015

Rainfall outlook May-July 2015 Rainfall decile ranges

Source: BoM

Source: BoM

20

3

15 2 10 1

5 0

0

Meat Production (LHS)

62

21.7

61

21.6

From the field A dry spring, summer and autumn has meant Tasmanian farmers are going in to winter with poor pasture and low weight on sheep. An El Niño threatens the possibility of a good spring, which would place further pressure on the industry. Many producers have been supplementary feeding to help stock hold on, but feed stocks are low after poor hay cuts last spring. Sales of lamb and mutton have been at record highs as producers look to reduce stock numbers. Lamb prices are high and are expected to remain steady as supply tightens. Producers will be rewarded if they can achieve good carcass weights. The rise in wool prices provides an encouraging outlook for the industry.

21.5

60

21.4

59

21.3

58

21.2

57

21.1

56

21.0

Flock (RHS)

Data: ABS

Stephen Caswell - Elders, Tasmania

Wool production and average micron

4

Bales Offered (LHS)

Data: AWTA

Ave. Micron (RHS)

micron

Sheep meat production and flock size

Bales offered (‘000)

25

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance Exports of mutton from Tasmania to Jordan, the United Arab Emirates and Kuwait increased substantially in 2014 and have continued to increase in 2015. Lamb exports have also increased slightly. After decreasing by 15% in 2014. Tasmanian wool exports have continued to fall in 2015.

Top 3 sheep meat export markets

12

25

45%

10

35%

8

30%

6

25% 20%

4

15% 10%

2

5%

20

60% 50%

15

40%

10

30% 20%

5

10%

Jordan

UAE

Lamb (LHS)

Kuwait

Mutton (LHS)

Live (LHS)

Kuwait

UAE

Jordan

2014

2013

2012

2014

2013

2012

2014

2013

0% 2012

0

80% 70%

40% Value of exports ($m)

Value of exports ($m)

Top 3 wool export markets

50%

0

0% 2012 2013 2014 2012 2013 2014 2012 2013 2014 China India Italy

2014 Export Share Export Share (RHS)

China < 19mcn (LHS)

India

20-23mcn (LHS)

Italy

24-27mcn (LHS)

2014 Export Share

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: GTIS

Price Lamb and mutton price

Southern Wool Price Indicator

1500

700

1400

600

1300 1200 c/kg clean

c/kg CWT

500 400 300

1100 1000 900 800

200

700

100

600 500 2010

0 2010

2011

2012

2013

Trade lamb

2014

2015

2011

2012

2013

2014

Mutton

Data: MLA

Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

601

502

483

543

421

Mutton 18-24kg

360

337

289

350

233

Southern Indicator (wool)

1207

1014

1077

1199

959

1456

1223

1477

1664

1256

1308

1129

1183

1329

1066

1056

813

781

857

667

Fine wool - 17µ Medium wool - 20µ Broad wool - 26µ

Data: MLA, AWEX

2015

VICTORIA JULY 2015 Conditions for sheep production in Victoria have been mixed with eastern parts of the state receiving good rainfall, but drier than normal conditions persisting in the west. The recent trend of producers changing from wool breeds to dual-purpose sheep and prime lambs has continued, contributing to the increase in sheep meat production. Lamb and wool prices are expected to remain supported as current supply and demand conditions persist.

Weather Observed rainfall April-June 2015

Rainfall outlook May-July 2015 Rainfall decile ranges

Source: BoM

Source: BoM

300

20

250 200

15

150

10

100

5

50 0

0

Meat Production (LHS)

Wool production and average micron

25

760 740 720 700 680 660 640 620

Flock (RHS)

Data: ABS

From the field A late and varied break to the season and mention of an El Niño has impacted confidence. Nevertheless, recent rain and warm weather is cause for optimism. Increases in wool and lamb prices are encouraging farmers to return to the sheep industry in the Western District after decades of declining flock numbers. Prices should remain at least at current levels for the foreseeable future given low stock numbers, which will take years to rebuild. Farmers seeking to invest in livestock enterprises should concentrate on the industry they know best and consider opportunities for improvement such as comparing production efficiencies of different breeds and lines to improve performance such as lambing percentages and wool cut per hectare. Ron Semmens - Rural Finance, Victoria

22.8 22.6 22.4 22.2 22.0 21.8 21.6 21.4 21.2

Bales Offered (LHS)

Data: AWTA

Ave. Micron (RHS)

micron

Sheep meat production and flock size

Bales offered (‘000)

350

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance Lamb and mutton exports from Victoria increased in 2014, particularly to the USA and China. Wool exports from Victoria decreased slightly in 2014 with less demand from China. Wool exports have increased in 2015 by 17% against the same time last year after renewed demand from China.

Top 3 sheep meat export markets

Top 3 wool export markets 18%

1000

80%

160

16%

900

70%

140

14%

800

120

12%

100

10%

80

8%

60

6%

40

4%

20

2%

0

0%

Value of exports ($m)

Value of exports ($m)

180

600

50%

500

40%

400

30%

300

USA

China Mutton (LHS)

20%

200

10%

100 0

2012 2013 2014 2012 2013 2014 2012 2013 2014 USA China UAE

Lamb (LHS)

60%

700

0% 2012 2013 2014 2012 2013 2014 2012 2013 2014 China India Italy

UAE

2014 Export Share

Live (LHS)

Export Share (RHS)

China < 19mcn (LHS)

India

20-23mcn (LHS)

Italy

24-27mcn (LHS)

2014 Export Share

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: GTIS

Price Lamb and mutton price

1400

600

1300 1200

500 400

c/kg clean

c/kg CWT

Southern Wool Price Indicator

1500

700

300

1100 1000 900 800

200

700

100

600 500 2010

0 2010

2011

2012

2013

Trade lamb

2014

2015

2011

2012

2013

2014

Mutton

Data: MLA

Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

591

551

486

549

429

Mutton 18-24kg

396

363

325

402

232

Southern Indicator (wool)

1207

1014

1077

1199

959

1456

1223

1477

1664

1256

1308

1129

1183

1329

1066

1056

813

781

857

667

Fine wool - 17µ Medium wool - 20µ Broad wool - 26µ

Data: MLA, AWEX

2015

WESTERN AUSTRALIA JULY 2015 The northern pastoral zone of Western Australia has experienced a good first half of 2015. Favourable conditions and a good spring have resulted in high marking rates and good fleece and carcass weights. Good rainfall is forecast for the coming months, boosting the confidence of farmers. The lamb price is expected to increase with relatively low supply and demand continuing to grow.

Weather Observed rainfall April-June 2015

Rainfall outlook May-July 2015 Rainfall decile ranges

Source: BoM

Source: BoM

100

25

80

20

60

15

40

10

20

5

0

0

Meat Production (LHS)

From the field A dry May and June saw additional selling in the grazing areas of Western Australia. Recent rains have improved the pasture outlook and reduced sales. There is a good supply of 2014 lambs in the market and opportunities exist to buy young wethers for grazing. Demand for sheep meat is very strong and farmers remaining in the industry are benefitting from improved returns. Jeff Wootton - Elders, Western Australia Wool production has increased but is forecast to fall slightly in the coming year. The wool market has been favourable with 10 year highs in the price of mid micron wool. The level of production suggests strong prices can be maintained. Demand for finished wool garments in China continues to be strong. Demand for fine wools in Italy has also improved.

Wool production and average micron

430 420 410 400 390 380 370 360

Flock (RHS)

Data: ABS

Danny Burkett - Elders, Western Australia

440

30

Bales Offered (LHS)

Data: AWTA

Ave. Micron (RHS)

20.2 20.1 20.0 19.9 19.8 19.7 19.6 19.5 19.4 19.3

micron

Sheep meat production and flock size

Bales offered (‘000)

120

No. of sheep (millions)

Meat production (‘000 tonnes cwt)

Production

Export performance Mutton and live sheep exports from Western Australia increased in 2014 by 27% and 34% respectively while lamb exports increased by 7%. Wool exports from Western Australia are up 5% on last year are ending 2014 10% lower than the year before.

Top 3 wool export markets 14%

450

90%

70

12%

400

80%

350

70%

300

60%

250

50%

200

40%

150

30%

100

20%

50

10%

60

10%

50

8%

40

6%

30

4%

20

2%

10

0

Kuwait

Jordan

Lamb (LHS)

Mutton (LHS)

China

0% 2012

China

Jordan

Kuwait

2014

2013

2012

2014

2013

2012

2014

2013

0% 2012

0

Value of exports ($m)

Value of exports ($m)

Top 3 sheep meat export markets 80

2013

2014

2012

China

2013

2014

India

2012

2013

2014

China

Czech Republic

India

Czech Republic

2014 Export Share

2014 Export Share

Live (LHS)

Export Share (RHS)

< 19mcn (LHS)

20-23mcn (LHS)

24-27mcn (LHS)

28+mcn (LHS)

Export Share (RHS)

Data: GTIS

Data: GTIS

Price Lamb and mutton price

Western Wool Price Indicator

1500

700

1400

600

1300 1200 c/kg clean

c/kg CWT

500 400 300

1100 1000 900 800

200

700

100

600 500 2010

0 2010

2011

2012

2013

Trade lamb

2014

2015

2011

2012

2013

2014

Mutton

Data: MLA

Data: AWEX

Current price as at July 2015

July 2014

Five-year average

80th percentile

20th percentile

Trade lamb 18-22kg

497

589

460

525

376

Mutton 18-24kg

337

323

289

353

205

Western Indicator (wool)

1251

1065

1099

1200

988

1352

1137

1384

1519

1188

1312

1130

1183

1331

1071

1258

1125

1126

1240

1021

Fine wool - 18µ Medium wool - 20µ Broad wool - 22µ

Data: MLA, AWEX

2015

About Rural Bank and Rural Finance Rural Bank has been a wholly-owned subsidiary of Bendigo and Adelaide Bank Limited since 2010 and is the only Australian-owned and operated dedicated agribusiness bank in the country. From 1 July 2014, Victorian agribusiness lender, Rural Finance joined Rural Bank as a division of Bendigo and Adelaide Bank Limited. As a specialist rural lender, Rural Finance has been fostering the sustainable economic growth of rural and regional Victoria for more than 65 years. Together, Rural Bank and Rural Finance are supporting farmers and farming communities by providing them with specialist financial tools, industry insights and investment into the future of the Australian agribusiness sector. Rural Bank’s specialist farm finance tools are available nationally via a network of banking partners, including Bendigo Bank and Community Bank® branches and Elders Rural Services. About Ag Answers Ag Answers is a specialist insights division of Rural Bank and Rural Finance. Recognising that good information is the key to making good business decisions, Ag Answers provides research and analysis into commodities, farmland values, farm business performance and topical agricultural issues to enable farmers to make informed decisions. The National Sheep and Wool Update compiles information to present a state-by-state analysis of the Australian sheep and wool sectors. Special acknowledgement As livestock specialists, Elders Rural Services offers insight into local market conditions for the sheep and wool sectors. We thank Elders for their valuable contribution to this report by providing this commentary.

For further information: E [email protected] P 1300 796 101 Authored by: Michael Curtis, Ag Achiever Jonathan Creese, Manager Ag Answers Matthew Ough, Ag Answers Senior Analyst

P 1300 660 115 ruralbank.com.au

P 1300 796 101 ruralfinance.com.au

The information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Rural Bank and Rural Finance make no representation as to the accuracy or completeness of such information. Opinions, estimates and projections in this report constitute the current judgement of the author as of the date of this report. They do not necessarily reflect the opinions of Rural Bank and Rural Finance and are subject to change without notice. Rural Bank and Rural Finance has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. This report is provided for informational purposes only and should not be relied upon without consulting your legal and/or tax professional. © Copyright Rural Bank Ltd ABN 74 083 938 416 AFSL/Australian Credit Licence 238042 and Rural Finance a Division of Bendigo and Adelaide Bank Ltd ABN 11 068 049 178 AFSL/Australian Credit Licence 237879

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