Conditions remain ripe with Elders’ StockCo offering
Western Australian livestock producers are set to take advantage of seasonal conditions as Elders’ partnership with livestock funding company StockCo continues to strengthen.
Following Elders’ announcement in September, the Company has successfully acquired a 30 percent equity in StockCo, in a bid to increase its client offering.
StockCo is a specialist provider of livestock funding solutions to help beef and lamb producers fund the finishing phase of the livestock production process.
Since 2014, the company has funded more than $250 million in livestock sales across Australia, making them the largest specialist livestock financier in both Australia and New Zealand.
The product’s ability to assist farmers in the final stages without adequate funding aligns well with Elders’ focus on developing a client offering that is focused on customer needs.
The companies’ alignment is timely considering the current market conditions in Western Australia. The state is experiencing one of the best seasons for many years as a result of high rainfall. This rainfall is converting to ample feed and water throughout the state with positive future predictions of average rains continuing into summer.
Elders WA livestock finance manager, Peter Hassell, says that these conditions, combined with record cattle prices and a buoyant sheep market, are providing an excellent opportunity for farmers to purchase and profit in livestock.
“Farmers would be wise to take advantage of excess feed and high sell prices during this time – conditions are perfect,” says Mr Hassell.
“With a large part of the Central Wheatbelt hit hard by frost over the last few months, there will be a large reduction in grain income from this area,” he says.
“The silver lining of this issue is that farmers can use these affected crops for livestock.”
Not only are conditions great for rearing livestock, the live export market and eastern state demand remains strong meaning processors are offering forward contracts to lock in secure supply.
Mr Hassell says that the StockCo offering makes engaging in this market simple and profitable.
“The product is designed to allow customers to maximise cash-flow and margins with flexibility to allow for seasonal changes year to year,” says Mr Hassell.
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