DAIRY
The dreaded snow arrived with a vengeance and is now followed by heavy frosts which is testing the winter systems and supplementary feed supplies of many farmers.
While worst affected southern areas are just aiming to maintain animal condition, northern herds are moving into the pre calving preparation with magnesium supplementation daily.
Animal parts found in PKE to be fed to dairy cows triggered a biosecurity scare, and sent officials scampering to check documentation from importing countries that critics remind us are regions that harbour foot and mouth disease.
The whole country should be very nervous when wake up calls happen like this as a major breakdown would have serious national economic consequences.
The latest global dairy trade auction prices reversed the recent downward trend and saw the market react to doubts on world supply after a cold spring in Europe and the US.
Rabobank reports that future price levels will be dependent on how cheap international grain prices become, and the strength of New Zealand’s spring milk flows.
Australian processors announced record opening prices for milk although they have failed to match Fonterra’s predicted 2013/14 payout.
NZ milk production figures have shown a sharp end of season fall off compared to last year as farmers culled harder and earlier in response to the previous seasons drought.
Synlait have gone to the market for $120million of capital to fund their expansion and speed up their growth plans.
LAMB
More steady movements in lamb schedules as the season’s kill is nearly 10% ahead of last year and volumes in the north are falling sharply.
This rising schedule and positive pricing predicted for next year, is pressurising the Meat Industry Excellence group into urgency for long term reforms, and this week’s announcement of Ross Hyland as the first appointment to the team to drive the change, has been welcomed.
Snow raking is taking place in pockets of Canterbury and Otago where sheep and cattle have become stuck under snowfalls and frost not seen for over 40 years.
It did reach the higher NI altitudes that suffered from the drought but not in the same quantities that affected the south and as feed is still short in these areas winter will be a nervous time.
Some inlamb ewes are now being marketed at the saleyards but are only selling at average rates, and fail to indicate any strong drought restocking is evident yet.
Prime lambs at saleyards are starting to dwindle and at Tinwald, prices lifted by $15 a head.
Keith Cooper believes lamb numbers will drop by about a million head next year and give more certainty and stability in the future market.
WOOL
No wool sale last week due to the drought reducing volumes and wet weather in the south interrupting the flow.
A double island sale ends the season this week, and with yearly average crossbred prices back 120-150c/kg clean on last year, most farmers will be hoping the recent better pricing and lower currency will last.
NZ Merino has announced a new long term contract with a Japanese firm at strong values, and shows crossbred wool producers how a branded contract strategy can improve farmer returns.
BEEF
Bull schedules have remained stable for 5 weeks, with the currency falls helping compensate for sluggish demand and building stocks in the US market.
The latest figures again report a diminishing US cow herd which is now at a 72 year low and at volumes last seen in 1941.
Good autumn early winter growth in northern areas has created interest in store cattle and if the currency holds many will not want to wait until spring for restocking purchases.
Fielday exhibitors report positive sales at this annual event, but most optimism was driven by the dairy sector than continues to underpin volumes of animals in the beef industry.
DEER
More venison schedule lifts as the spring chilled season looms, and the now easier European currency will be helping fuel this demand.
Last year the Euro traded in a 62-66 range during this important “game season” period, so the present level will help venison regain price competitiveness with other proteins in a very sensitive European market.
Velvet marketers report all of last seasons crop is sold or spoken for, and with lower levels of stocks held in both Korea and China they are positive about the new seasons prospects.
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