The Gavel 2022 report by AuctionsPlus shows there is considerable concern among livestock producers about the continuing rise in inflation and the associated increase in costs.

The second annual edition of The Gavel saw 200 producers across Australia take part, 23 per cent of which live in Queensland, from a range of ages and farming stages.

The survey found 89 per cent of livestock producers expect to have their business negatively impacted by inflation and 98 per cent of livestock producers expect increased costs will impact their business, with 86 per cent anticipating squeezed margins and 67 per cent facing increased staffing costs.

Labour is also a key concern, with 84 per cent of livestock producers concerned about access to skilled labour and 65 per cent responding that they have been impacted by the labour market in the past year.

Compared to 2021, more than three times more farmers cited input costs and reliability of access as their main business concern in 2022, jumping from 8 per cent to 29 per cent.

Concerns around climate change have also risen, from 24 per cent in 2021, to 30 per cent this year.

Over three quarters of those surveyed agreed with the statement: “I am doing as much as I can to reduce the carbon footprint of my operation,” with 42 per cent strongly agreeing, up from 70 per cent in 2021.

The report found one of the ways livestock producers have been looking to offset staffing shortages is through alternative methods.

The investment in a “good” working dog helps to ease the focus of staffing shortages.

The average price paid at working dog sales across Australia has been increasing year-on-year, with the demand for dogs seeing a number of new sales feature each year.

So far in 2022, there has been a $7,935 average price for working dogs, a 118 per cent increase on 2016 prices.

Despite the concern about rising costs, 82 per cent still agreed it is an exciting time to be in farming.

This article appeared in On Our Selection News, 14 July 2022.