The Weekly Livestock Report

BEEF

While bull schedules seem to be stable, prime export and local trade prices continue this recent easing trend ,as the market hits a flat period. But in areas with feed, demand for store stock is sound and the first significant parcels of weaned dairy bulls hit the market at prices ahead of last year.

Last months slow feed growth rates have dampened demand for animals offered at spring sales in the south, but positive beef returns have been predicted by the Ministry of Primary Industry. Silver Fern Farms continue to be optimistic on beef although lower prices will rule the market in the short term, prices should firm to 420c/kgCWT later on.

DEER

Another week of stable venison schedules as finishers strive to supply quality animals for the chilled trade. The first animals were harvested recently from the deer progeny test as the industry seeks to identify the best growth rate genes to match the “heavier and earlier” venison goals.

Success by Hawkes Bay deer farmers as world champions in sustainable farming systems in a Marks and Spencer competition, is kudos for the industry lead quality farming systems and will set the model for others to follow.
Older animals velvet harvesting is now in full swing  and heavy yields are being reported but early season market pricing is still unclear at this early stage.

DAIRY

Subtle weather changes seem to be happening as cooler weather gets replaced by days with higher temperatures and most areas will have seen grass growth peak. Southern regions and the West Coast will be pleased about that as they have been suffering from a month of cold wet conditions. Weather predictors are suggesting the summer will be a neutral one, midway between La Nina and El Nino which hopefully will bring enough summer rains to allow finishing of stock and steady milk flows.

Main mating is now close in the south,, and AI well through in northern areas and reports suggest submission rates are pleasing. Silage harvesting has started in many regions as managers strive to ensure quality in the sward and keep production at high levels for as long as possible.

The Ministry of Primary Industries pastoral report predicts that dairy profits will be down 57% this year and many are taking a cautious approach to spending early in the production year. Dairy politics with lobbying are in full swing as eleven candidates battle for three places on the Fonterra board.

The release of details for the investment opportunity of non voting shares in this company is attracting good outside interest, but few farmers are stating publicly their willingness to sell surplus shares.

LAMB

Schedules hit the cross over period where the emphasis changes from old seasons lambs to new, and a 20c premium over existing levels is being offered in the north as an opener, but price pressure remains on the older animals. Cautious optimism is returning for lamb prospects into Europe but it will be gradual improvement as confidence needs to be rebuilt after the price blow out of last year. $90 for a 18.5kgCWT lamb is the early return all in the industry are unhappy about but marketers report thats all customers are willing to pay.

Alliance has confirmed that its sheep meat processing at Mataura will be transferred to Lorneville as it strives to improve efficiency within it’s plants. The wet weather in the south has delayed tailing and growth rates of new lambs, and will delay any early start to lamb processing in that region.

A few early spring lambs are now appearing in the saleyards and with the local trade schedule  also low most are selling under $100/head. Quality prime hoggets are still selling up to the lamb schedule  but as the flow of younger animals comes on stream, discounts will appear.

WOOL

The South Island auction saw prices lift significantly and coarse crossbred and merino indicators reached the highest levels of the new season. Again passings were low and exporters were buoyed wool is now moving again along the supply chain. The wool market overall is suffering from a general lack of demand but short supply in the coarse crossbred product has kept prices rising for this micron group.

 Wools of NZ prospectus will soon be released and sheep farmers will be challenged to support their product into the future. A further chapter in the Wool Services International sale with  leading bidder Lempriere Holdings assuring the market it has no plans to sell scouring interests to Cavalier if the takeover is successful.