LAMB
More drops in schedules this week, as the realities of a weak frozen market are reflected back to lamb returns that are now down to the where they were three years ago.
The early kill, poor prices, and unexpected feed levels this summer have lowered present processing numbers, and some plants have had to shorten shifts and Alliance reports it has now completed over 60% of its budgeted kill.
Many plants are happy with this slower processing period which should give them more time to clear stocks in a difficult market, but with some areas experiencing two hot weeks with no rain the demand for space may change quickly.
Prime Range Meats of Southland sent all it's workers home this week as the plant was closed on the order of it's directors for as yet undisclosed reasons.
Local trade lamb prices also fell 10c/kg cwt this week indicating enough quality animals are being offered to meet butchers demand.
The feed supply has increased demand for store sheep and bigger numbers at Canterbury sales saw prices revive, as dryland farmers restocked.
WOOL
The double island wool sales continue and in spite of the increased seasonal supplies and lack of activity because of the Chinese New Year celebrations, the market has held up well.
Price indicators for crossbred fleece lifted, and passings reduced in this positive sale, although lambs fleece appears to have come off it’s earlier highs.
Merino NZ again shows leadership in the sector with it’s promotion and research of the fibre, as they announce a $21 million PGP partnership that looks to lift the profitability and sustainability of strong wool.
BEEF
More stable beef schedules this week as a shortage of stock is compensating for an easing Chinese market due to increased volumes of beef being offered from Brazil.
The US market has recovered again with imported bull and cow prices returning to levels last seen in November last year as NZ processing numbers fall again.
Lack of supply is also driving the saleyard market for both prime and store animals, as summer prices refuse to fall like they traditionally do at this time of year and local trade values lifted by 10c this week.
Dairy beef weaners have been selling strongly and indicate very positive prospects for a strong beef weaner market.
DEER
Venison prices have now settled into their summer lows at prices about $55 per head above last year, and are now at levels sure to encourage a long awaited reinvestment into female animals.
With a strong industry marketing strategy for growth based around the Cervena brand, the sector looks well placed to handle a period of better venison pricing for a year or two yet.
Recent reports suggest the velvet season despite it's strong start has settled back at about last years levels (mainly due to the jelly tip market easing ), but most are very happy with the returns earned.
However one industry participant warned that the price is highly sensitive to volume, and all farmers especially those new entrants chasing the strong returns should be aware, that when volumes rise to above 600 tonnes of green product, prices may well ease.
The challenge for Deer Industry NZ is to find new markets for this increasing supply, and significant improvements in market access in the last few months, and the positive growth of product being used in the healthy food market, are signs it is aware of these issues.
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