LAMB
Big drops in lamb schedules this week as dry conditions in the south and east coast of the north island prevail and price adjustments for frozen product, lead by a 40c/kg cut in local trade prices.
More lambs are being offered in Canterbury saleyards as values now ease to 250-265c/kg lwt for unfinished animals in response to the increased supply and similarly in the dry areas of the north where farmers are quitting smaller animals at now well under $3/kg lwt to match dwindling feed supply.
Chinese company Lianhua Trading Group have gained OIO approval to increase their stake to 75% of Prime Range Meats in Southland and will use the increase in capital to expand the operation and lift employment by 50.
And some progress at last associated with over capacity within the red meat sector with reports suggesting companies are looking at a proposal of creating a moratorium on new processing licences.
WOOL
The latest North Island wool sale saw subdued interest as crossbred indicators fell, although most vendors did accept the market and sold 90% of the product offered.
A double sale this week will test the market with more crossbred main shear on offer and a slow wet spring in some areas will have affected the products colour.
A Rabobank report on Australian Merino wools made pessimistic reading of decreasing value over the last 12 years for their wools, but Merino NZ reaffirmed their strategy of long term contracts (now totaling nearly 70% of the growers), to create branded products to insulate NZ farmers from the commodity market and declining price.
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BEEF
Some more easing of schedules in the north as the processing flow builds and prices fall off the peak, although optimism abounds that values will hold for a year or two yet.
Little signs that these falls have flowed on to store sales, as some regions still have plentiful feed, and finishers have plenty of money to replace after this years prime animals are sold, but in areas that are drying out more cattle are being off loaded.
More reports that the theileria disease has spread to the South Island with the Canterbury, West Coast, and Marlborough areas all reporting occurrences in breeding cows.
Good news on agricultural education as a NI secondary school leads the push to revitalize agribusiness as a subject, so MPI production targets can be achieved by future managers and farm workers.
DEER
Again more big drops in venison schedules this week, as deer farmers will be watching carefully on the degree of the fall after early optimistic comments by exporters on demand and low stocks held.
Concerns remain within the industry with the falling numbers of breeding stock that will only be arrested by a sustainable venison price that at present is about a $1/kg short.
Careful harvesting of second growth product can improve the profitability of a velvet enterprise significantly, as Chinese demand remains strong for this type of product.
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