The Sheep Deer and Cattle Report: SFF capital raising proposal imminent amongst much speculation and rumour

LAMB

Nothing much has changed in the lamb market with strong chilled demand lifting prices, but high in-market frozen stocks in both the UK and China, and strong domestic supplies in these countries, has kept demand weak for the older product.

Lambing is now in full swing nationally and every cold weather snap will be felt at this vulnerable time of the year, as lambing survival rates are the first step for a profitable season.

East coast areas of both islands are still drier than average, and regional councils are warning of a possible El Nino looming and suggest managers act early if feed shortages arrive.

All eyes this week are on Silver Fern Farms capital raising plan which is nearing fruition, but rumours of a 50% sale to an overseas investor are causing all sorts of debate.

Suggestions are flying wild as to who the suitors maybe, from Chinese and Brazilian interests to iwi investors, but shareholders are keen to see a proposal soon and decide on the future direction of the red meat processing sector.

Reports suggest an excellent return from SFF's beef operation has reduced much of this companies debt problems, but shareholders supporting a co-operative structure remaining in producer ownership, will fight any radical change.

Alliance reports new packaging technology for meat will improve the chilled shelf life of meat even further, and add value to this premium product.

WOOL
This weeks small North Island auction of mainly crossbred hogget and second shear wools saw the younger sheep’s clip generally cheaper, but the rest, including oddments lift in price.

There were minimal passings in a market short of product, and prospects look sound for positive values leading into the main shear season.

BEEF
Again more easing of manufacturing and bull beef prices this week, as the US quota levels impinge on market pricing, as some product may have to be stored until the new year, to avoid the penalty tariffs for breaches of volumes.

As with lamb, chilled prime beef is in demand, but with supply shortages due to the early kill, volumes are hard to source, and this is reflecting in record pricing at the saleyards for quality animals.

The Otago region has announced they have no infected beef herds in the region and with Southland also TB free, the goal for the whole country to be rid of this disease now seems achievable.

The Beef and Lamb NZ  referendum on levy funds is about to close as participants are asked again if they see value in this industry organisation.

DEER
More big lifts in venison schedules as the chilled production season gets into full swing, as deer farmers achieve short term pricing goals, and now look to maintain these values into future years and return the sector to growth again.

Fresh velvet is now seen growing quickly on older stags heads as this amazing product rejuvinates annually for another harvest for the healthy foods market.