LAMB
Prices lift for the winter period with Alliance changing to a CPK payment, as numbers ease, prices firm, and product processed increases to more chilled destinations.
Exporters report improvements in the Chinese, UK, and US markets as the market adjusts to supply shortages out of NZ.
Prime lambs at saleyards are gradually increasing in price as more heavier animals are marketed and the local trade competes for supply.
It has been estimated that South Island lamb numbers left to be processed are at their lowest levels since 1990 which could revive procurement pressure later in the season.
Sheep numbers continue to fall to now sit at 29.1 million, as poor returns and drought take their toll, and some are deciding to increase their cattle ratio at the expense of sheep.
Still no news from the regulatory authorities on the SFF/Shanghai Maling deal, but the need for change and investment in the processing sector is now even more urgent than before, with overcapacity and poor sheep returns the drivers.
WOOL
The single North Island wool auction last week saw prices lift again on the last sale here, as the stable currency and low volumes kept demand strong.
Crossbred fleece prices rose by 4%, second shear up to 2%, but lambs wool prices were unchanged from the last North Island sale.
Processors report that stocks of sheep and lamb pelts are low and slipe wools have been selling well within the buoyant wool market.
BEEF
Beef schedules rose this week in the North Island, but volumes of cow meat from NZ have over supplied the US market and demand are easing for this type of product.
A visting expert from Brazil has warned beef producers of that countries potential to increase production, and believes it will grow to become a strong competitor in global beef markets.
They have also gained acess into China and are now the biggest supplier into that country, and is on track to supply the US with fresh beef by the middle of the year.
Prime animals are in demand for the NZ chilled market, but although South Island local trade prices rose, it had little impact of the local saleyard prime steer market.
Beef bull sales are primed to start and vendors are optimistic of a very strong selling season judging by interest and participation in viewing animals prior to the sale.
DEER
Venison schedules are still in their summer mode with slaughter rates very low, and starting to impact on processors meeting existing customers.
The rapid reduction in the number of females killed has surprised some exporters, but shows confidence for growth by the sector after years of falling stock numbers to now sit at just 900,000 animals.
Silver Fern Farms announces a rationalization of its processing capacity with plans to relocate it’s Islington deer plant to Pareora.
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