The Weekly Livestock Report: Signs spring schedules have peaked but milk price still climbing

LAMB

Lamb schedules appear to be near the peak, as plans develop for the new season and exporters report all signals are stronger than at a similar stage last year. The tight supply situation is not only relevant to NZ, with reports this is also a global issue, and this factor should drive prices back to more sustainable levels.

New leadership is announced to run Beef and Lamb NZ, as James Parsons was voted chairman elect, replacing Mike Petersen’s term at the top.

In a Sustainable Farming Fund project, 6 farms along the east coast are looking at different forages to reduce the risks of climate variability as the focus is on to improve profits of dry land hill country farms.

The Meat Industry Excellence Group have made a strong call for farmers to support their Meat Co-Operatives as they see this is an important step to pressure the industry into worthwhile meat reform.

 WOOL

The rising dollar impacted on wool values at the north island auction especially for fine crossbred product, but a limited supply of coarse wools saw their prices firm.
The next sale sees 30% less offered than the anticipated roster as the fall in sheep numbers and last years drought affects volumes.

Wools of NZ announced at their road shows that at least $6 a kg is realistic for a lamb’s wool contract but only with strict specifications and an integrity program.
A new convention centre in Beijing is adorned with a giant rug using 3000kg of NZ wool as a showpiece for this product in a very influential market.

BEEF

Beef schedules eased with the currency rise, as the NZ dollar against US, so influential in beefs competitiveness, is now at its highest level since May.

However positive news from the markets with recent import policy changes in Indonesia rekindling orders into that country and reports reveal US buyers were more active in the imported lean beef market.

This new demand will have to compete for fewer cattle as the Beef and Lamb NZ stock survey reveals numbers have been severely reduced by the North Island drought and this is reflected in the beef processing volumes being 9.8% ahead of last in August..

The Theileria infection in cattle has moved rapidly south and 800 deaths have been reported although outbreaks are easing and all farmers are urged to watch out for signs of anaemia in their animals.

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DEER

Venison schedules also have eased this week as the peak may have been reached early, on the back of strong competition from other game meats resulting in slow frozen sales. This will disapoint the industry as they strive to reignite growth but farmers should focus on increasing production to improve profit levels.

The focus farm in north Canterbury has proved it can be done with the deer finishing operation leading the returns per kg of DM calculations in a mixed livestock enterprise that includes dairy heifer  and cow grazing, and sheep.

The chilled market demand is stronger but early spring production is back compared with last year and farmers must grasp this small window of opportunity to capitalize on these premium spring prices.

DAIRY

More areas are now experiencing normal spring weather as rainfall and temperatures realign back to the average and faster rotations and some early silage have allowed managers to regain control of pastures.

Heat detection workshops have been well attended as the importance of ensuring a tight successful mating is reinforced by Dairy NZ advisers.

The hum of chainsaws is continual in Canterbury as the big clean up gets underway and nervousness mounts on how soon damaged irrigation capacity can be repaired before dry soils demand water.

PGGW buys up rival irrigation firms as they look to capitalize on this area of development and Central Plains Water asks farmers for $45 million of capital so they can make a start to provide water to central Canterbury farms.

The 100^th trading event of the global dairytrade auction saw strong prices continue and dairy commentators extol the success of this trading platform that has now achieved over $10 billion dollars worth of sales of dairy commodities.

Profit results for 2012/13 have been released by Fonterra ($5.84/kg ms + dividend) and Synlait ( $5.89/kg ms) at levels around expectations  but predictions for this year keep lifting with Fonterra increasing again to $8.30!