The Weekly Livestock Report: Southern weaner deer and calf prices fall, beef schedules rise, another big loss for lamb processor in 2012

DEER

Schedules are still stuck in their summer lows as exporters report demand from Europe is weak but this is often the case at this time of year with this traditionally autumn eaten product.

Early weaner sales in the south have met the market at good weights but are back in price to $4-$4.20 a kg LWT and reflect the cautious venison market and competitive dairy grazing options for finishers.

BEEF

It appears the long wait for the beef upturn is over as one processor lifted schedules for all grades and demand increases in the US for Memorial Day.

Chilled demand is still reported to be strong but the problem for northern processors will be where these quality animals will come from. Steer and bull schedules are back between 16-27 cents/kg CWT behind last year but this is well compensated for in the price of this seasons calves.

The huge early kill of cows because of the drought has increased volumes available but with US herd numbers also under pressure and Chinese demand growing for beef, exporters are confident the market will handle the stocks processed.

Researchers have announced developing a new vaccine to control FMD which is exciting news for countries such as ours so reliant on agricultural exports.

The southern calf selling circuit has started and early values are back 20-40c/kgLWT and demand relative to the feed about, is reasonable.

LAMB

The Easter chilled lamb promotions in Europe have been successful as exporters look to revitalize interest in this product especially for the higher priced cuts.

China has bought record volumes of sheep meats each month of this year including higher valued products and has helped diversify the selling options away from the troubled European economies.

Pelt prices showed good lifts in prices on the ANZ commodity index and wools steady price levels have helped support the drop in meat returns.

Processing space pressure is starting to lift in the north but southern works report heavy demand for a few more weeks.

ANZCO reported a significant loss for the 2012 year mainly on the back of its lamb product and it seemed no one in the industry escaped the downturn. The Meat Industry Excellence group has reorganized its leadership group and published plans for national meetings to gain a mandate from farmers for significant change to their troubled sector.

WOOL

More steady price levels at auction even as the currency firmed and vendors met the market to kept wool moving through the system.

A report by the ANZ on the wool sector notes farmers lack of unity for a collective solution and reluctance to invest in their industry as some strive to change from being price takers to price makers.

DAIRY

Rains are now reappearing but only enough to change colour to most resting pastures and warm temperatures will be needed to stimulate growth before winter. NIWA predict normal weather patterns from April until June and a game changing storm soon, and dairy advisors are encouraging farmers to dry off and use the next 2-3 months to put Body Condition Scores back on before calving.

Extra supplementary feed is becoming more difficult to find with PKE only available to those contracted, and feed grains now rising in price. Some straws are being shipped from the south to Hawkes Bay and this bulk  will be useful to complement quality feeds.

The global dairy prices are now the highest on record accumulating to a 58% rise for the year, but farmers will need all of this income lift as it is predicted that 40% of north island dairy farmers will not be able to meet farm working expenses and interest, after this serious drought.

Positive investment news from a Chinese infant formulae company who has approval to build two plants in NZ to meet demand for their product, and Dairy NZ scientists report progress in identifying “efficient” cow genes that mark lighter animals producing big milk flows.

Concern in Taranaki of a TB outbreak in a group of herds, shows the fight against this disease is far from over and delays at getting these problem animals killed adds more stress to the farmers involved.

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Here are some links for updated prices for
- lamb
- beef
- deer
- wool