Big industry’s crucial role in local economy
GEOFF Koerstz operates a livestock carrying business as well as farming some country around Narromine, and knows first-hand about the cashflow generated by carting sheep to Fletchers International – he says it’s great for local carriers.
“Certainly it all adds up, everyone gets a kick out of Fletchers that’s for sure, so the local economy would certainly be struggling without Fletchers I would imagine,” Mr Koerstz said.
“Take 800 or so employees out of Dubbo and it’d put a big dent in the city, wouldn’t it.”
He said the work flows directly into local wages, fuel sales, truck maintenance and multiple other on-costs, and believes that’s a vital underpinning of the region’s economy – especially coming into what’s predicted to be an incredibly tight year.
“I think it’s very important, it just keeps a floor in the market, doesn’t it, so everyone can come in here with confidence and you know the money’s right. I think Roger Fletcher’s been tremendous for our area,” Mr Koerstz said, adding that the livestock market isn’t the only area Fletchers is now involved in.
“Specially on the grain side of things, it’s really put a good floor in that market for everybody,” he said, adding that he has sold “a lot of grain through Fletchers” and the whole process happens very smoothly. “You know that 14 days from unloading the grain your money will be in the bank.” Driver Greg Hitchcock agrees. “Fletchers keeps us going a little bit mate, it’s a pretty big industry, lucky Dubbo’s got it,” he said.
While the livestock transport side of his business has been flat out, Mr Koerstz said the farming side of things has been extremely difficult.
“Tough year mate, very tough. I’m a bit concerned about the six months ahead. Everyone’s sort of got through last year but it’s the next six, eight, nine, 10 months that’s going to be a worry,” Mr Koerstz said.
“Come planting time this year on minimal moisture it’s going to be a real concern.
“Obviously a big turnaround’s gotta happen in the next three or four months so people can go in with confidence, you know, buying fertiliser at $750 a tone or whatever it is and lining up again. There’s blokes who’ve missed out two or three years in a row so it’s a big call I feel for people, it’s bloody tough at the moment,” he said.
Mr Koerstz is grateful that land values have been skyrocketing during the past decade, enabling farmers to hang on to equity in their properties even in the toughest times, and that sheep and cattle prices have held.
“I think that’s the only reason people are sort of hanging in there – because the value of land is obviously rising. It’s probably unprecedented in a drought, (that) people have been transacting country for good money – you very rarely see land go up in a drought and commodity prices stay reasonably high.
“This stock job has been incredible,” Mr Koerstz said.