LAMB
More lifts in late autumn schedules as chilled orders are prioritized over frozen product and stocks are reduced at a steady rate.
One processor has released their winter/spring lamb contract rate at $5.85/kg to show some optimism that reduced volumes will stimulate demand and price.
Confusion with NZ meat exports into China as a labeling confusion has stalled product at the wharves and made processors nervous over delays in this now very important market.
In the NI areas affected worst by the drought, a winter feed shortage looms, and advisers warn only 3 options remain of either selling or grazing out of stock, or applying Nitrogen. In the south salmonella outbreaks have occurred in Otago and Southland adding vaccination costs to severely stretched sheep farmers budgets.
National average tax values for sheep have plummeted by about 37% reflecting this industries demise but the equity erosion will be compensated by some tax relief.
WOOL
No North Island sale this week due to lack of volumes but with the US currency easing to it’s lowest level since September last year and the coarse wool indicator over $4 again, optimism for more price lifts abounds for the next sale.
Rabbits have returned to nearly plague numbers in Central Otago as this pest adds big costs to fine wool growers budgets.
BEEF
More small lifts in beef schedules driven by reduced supply and chilled Asian demand, but processors still report sluggish US markets as the cool spring, strong chicken competition and big Australian production hold back the recovery.
Another successful year for the Steak of Origin promotion with a repeat winner producing the best steak, and optimism for the future was shown by beef producers in an increase in prices for breeding bulls in the tax market values.
DEER
The period of record inactivity for deer schedules reflects the weak market for venison and one companies announcement that the spring premium for chilled contracts will be just $75 a head will barely cover winter feeding costs.
2013 tax values reflect the weak market for deer, dropping by nearly 10% for red mixed aged hinds, and a recent small sale for weaners at Temuka returned rock bottom prices.
DAIRY
As the old season finishes and farmers focus on preparing for the new, some will be looking at how their system handled the dry, and how next year they can provide some insulation to the weather eating away at milk flows.
Autumn grass growth rates are now reverting back to the norm as most have now dried off and good grass managers will be preparing paddocks for their winter spell to ensure spring grass will be available of optimal quality.
Careful feed budgeting will be needed to ensure cows regain BCS by calving as most surplus feed supplements are now accounted for.
Its all go for a spring start at Fonterra’s new plant at Darfield as the roof is lifted on the worlds largest milk powder drier, built to cope with the predicted 6% lift in next years milk volumes.
About half the national growth in irrigation is occurring in the Canterbury region and most is converting to dairying, so this new plant is ideally sited to handle the increased flows.
The IRD released it’s national average market values for dairy cattle and they were back from last years highs by about 14% reflecting the drought and reduced payout. The latest auction results eased again for all milk commodities but with the currency also weakening the net affect was still positive.
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