DAIRY
Most farmers will finally agree that the drought is over but all will state its affects will linger on for years and with winter quickly approaching some tough decisions will need to be made to maintain BCS in capital stock retained.
In an early autopsy, one prominent agriculturalist asks why farmers are so slow to learn from past dry periods and bemoans today’s lack of use of well sealed pit silage being replaced by the short term shelf life wrapped feed.
He also questions extensive use of many modern ryegrass cultivars that don’t survive very dry periods and exhorts the need to return to using more drought resistant bulk forages like sudax, lucerne and lupins.
Many operators will be looking at the feed and production costs incurred over this period as they plan their future as more volatile climate patterns are predicted ahead.
Facial eczema outbreaks are being reported in cows in Taranaki after rains cause an explosion of spores, and farmers are reminded that zinc boluses provide the best control for this disease.
Dairy farmers are signing contracts for 22-26c/kg/dm for winter cow grazing in Mid Canterbury where the brassica crops are responding spectacularly to the rains over the last month.
NZ milk production was ahead by 2.8% on last year at the end of March but such was the strong spring flow that it is estimated even with the devastating drought yearly volumes are predicted to be ahead nationally by years end.
The dairy expansion down south (up 9.8%) has covered the big NI falls(.9% down) and shows the importance of having production in different regions so climate variability can be covered to guarantee continuity of supply for regular customers.
Three of the commodities sold at the latest milk auction continued the recent price rises but Skim Milk Powder dropped as buyers reduced the premium offered for Fonterra product.
Some of the offerings attracting good prices were to be delivered in the new season, which gives farmers optimism for a strong predicted payout, next year.
LAMB
No more schedule rises at present but processing figures reveal that the kill is way ahead of last year and in the north by the end of May it is predicted last years tallies will have been nearly matched.
Processing weights in the north have plummeted and the saleyards have seen huge yardings as most have run out of time and feed for any trading stock.
ANZCO has rushed to defend lamb meats premium position, and blames wool and the currency for dragging down sheep returns.
SFF CEO Keith Cooper has responded to farmer calls for an 80% model to save the industry, misses the point and calls for changes to strategy not structure as the way forward and seeks answers to procurement security and shortages of capital as the major hinderances within the industry.
The Meat Industry Excellence group held the Christchurch meeting in front of a disappointing crowd but achieved a strong mandate for change, and follow on north to Fielding, and if they get similar support will seek to implement the 5 step restructuring plan.
Every one agrees the status quo is broken and the sector need a new vision and plan to return sheep and beef to profitability again.
WOOL
A disappointing auction this week followed a similar weakening seen in Australia as the absence of Chinese buyers saw the market fall back even with the currencies weaker position.
Mid Canterbury merino farmer Anna Emmerson has won the Loro Piana Challenge Cup in Hong Kong with a world record bale of 10.6 micron wool.
The competition with Australian farmers over the years has been intense and its good to see NZ's fine wool genes are competitive with our neighbours as farmers strive to produce the finest fibre in Oceania.
BEEF
No schedule movements this week as the US beef market remains flat as chicken competes aggressively over beef pricing, and warmer weather is needed to reignite the barbeque market.
Southern and late northern calf markets have remained steady as lack of feed and stored supplements are hindering demand at the saleyards.
If good late seasons temperatures allow demand for store stock will build quickly and it is likely store cattle will be very expensive in the spring.
DEER
Prices for venison in Europe are reported to be back 10% with the strong currency subduing demand and customers turning to cheaper protein alternatives.
Finishers are looking for spring contract pricing details, but with little volatility in the rising currency, forward pricing is difficult for the companies and with some more expensive cuts slow to move pricing will likely be very conservative.
There has been growing interest to venison from China but Europe is by far the best paying market and with only two plants registered to export to that country processors are frustrated they cannot explore this opportunity further.
The velvet market has been quiet since Xmas but good industry pricing discipline is being reported and exporters are comfortable with volumes of stocks carried. They report a small drop in prices by $1-2/kg but are hopeful stocks will be cleared by the start of the new season.
Unfortunately for the industry, stock reductions are still occuring and farm focus groups are working hard to improve systems to return better profits so deer can once again compete strongly with other land uses.
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Here are some links for updated prices for
- lamb
- beef
- deer
- wool
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