The Sheep Deer and Cattle report: Chilled venison prices lift but frozen product price concerns

DEER

An unexpected lift in venison schedules by one venison processor reflects good demand for chilled product, but still repeats warnings that the frozen market is difficult.

Based on these concerns, reaching spring targets for yearling animals and supplying the chilled market could be very important if the frozen market prices are driven down by local European game animals. 

Deer Industry NZ chairman Andy Macfarlane reminds farmers of deer's profitabilty stating it was still the most profitable form of dry stock farming.

Deer integrate well into other systems of farming especially in the South Island hill country where their feed demand curve fits neatly into the later grass supply.

The hinds fawn later, and yearling deer are harvested before Christmas which coincides nicely with the next crop of bulls and heifers arrival.

The Passion for Profit Primary Growth Partnership plans to integrate with the expansion of the Cervena program into Europe which has a goal of generating an extra $2/kg gains of profit onfarm.

The Deer Industry also reports good support for an industry training program held recently in Queenstown as they target young farmers on this profitable land use option.

Velvet harvesting is now in full swing for older stags and younger animals with strong velvet genes are showing big lifts in production potential.

LAMB

After a period of perfect lambing weather for many, later hill country farms in the south will have been caught with the recent snow, rain and winds that will have had damaging affects on newborns.

North Island lamb schedules reached yearly highs as supply shortages created strong demand and optimism for a season of strong prices, and one processors contract for new season’s lambs at $6.25/kg  is now being activated.

Prime ewes selling at the saleyards seem to be selling ahead of their schedule values and supply shortages and strong Chinese demand are driving prices higher.

Processors are having their rounds of farmer meetings outlining this season’s prospects and explaining their companies views on the lack of progress on meat industry reform.

The Meat Industry Excellence group is calling for a more transparent director election process and intends to pressure candidates for views on how the turnaround will occur.

Both of the meat co-operatives will have new leadership at the top with Alliance selecting Murray Taggart, and Eoin Garden of Silver Fern Farms announced he will retire in December, and it is hoped a fresh approach to industry issues will reinvigorate this sector.

 WOOL

Wool price rises continue at the latest South Island auction and now the reasons for reduced volumes are being explored with some suggesting more contracts are being committed to, and others questioning whether the auction values reflect the market.

The steady rise in crossbred prices are welcomed by sheep farmers as a sustainable wool industry is needed if profits from sheep are to be competitive again with other land uses.

Mid micron and merino wool values are struggling to retain past premiums and reports suggest medium term contracts are ahead of the spot market.

BEEF

This season, there seems to have been an earlier spring beef schedule decline, but producers are heartened that it's from a higher base that still sees schedule values ahead of where they have been anytime for the last 5 years.

Local trade prices have eased from historical highs but shortages of prime cattle especially in the north continue to drive demand at the saleyards.

Grass rules in the store cattle market as values improve where pasture grows, and prices are often more optimistic for longer term cattle.

The early and autumn born dairy beef calves are now starting to be seen in saleyards and should attract strong interest as a cheaper option to fill the gap the previous years drought created.