The Sheep, Deer and Cattle Report: The cold snap reminds us there is more winter to come yet and some analysts warn that store beef prices are getting too dear

LAMB

Another small lift in lamb schedules this week, as the frozen business is being diverted away from the UK to better returning areas.

Limited supply is helping in these difficult trading times, and surplus stocks appear to have eased out of the important Chinese market.

Plentiful lambs are now being seen in the early lambing regions but optimism among sheep farmers is low, with the markets uncertain and the SFF/ Shanghai Maling deal still not consumated.

August has started with some heavy falls of snow in the south and areas of higher altitudes in both islands but these districts don't lamb till later and losses should be low.

But this return to colder conditions after such a mild period shows that the climate can rule production even yet, and the years success can sometimes be influenced by one severe weather event.

Saleyard prime lamb prices have started to move upward again as shortages loom, and young store ewes full of lambs, have reached $190/hd in Southland.

Good scanning percentages have been achieved in Marlborough despite the dry as farm managers proactive response to the drought has proven productive.

Hogget scanning will be in progress, and while some see production from these young ewes as only a bonus, those that are keen to look for profit from all livestock carried are earning good returns at little extra cost.

WOOL
This week’s South Island wool sale bounced off the bottom as a variety of wools attracted strong bids, and 85% of the offering was sold.

Indicators for crossbred wools lifted between 13-14c/kg clean but mid micron fibre jumped 73c/kg from the yearly low of two weeks ago.

Prices however are still well back on last years averages and will disappoint growers that normally expect more for high yielding wools that are produced at this time of year

The currency has settled slightly and mid micron and the small parcel of merino wools met strong demand, and showed the present supply shortage will continue to drive the market in the future.

BEEF
 

Some small lifts for beef schedules this week, as shortages from Oceania have reignited demand, although US cattle futures drop lower on the back of increased domestic production in that country.

Rabobank beef specialists urges caution on prices paid for young beef animals, as some saleyards deals seem to be over optimistic to possible returns in 2 years time.

Cull dairy heifers and cull cows are still being offered in numbers at saleyards as dairy farmers look to keep only the minimum and very best replacements, as they look for all areas to supplement their cashflow shortages.

South Island saleyard prime steer prices are lifting weekly, but in the north the normal seasonal rises have yet to be seen, as plentiful supply sometimes helped by wet soil conditions, has kept the local market satisfied.

The farm confidence survey shows a flat response as uncertainty rules for the new season, with market volatility sure to intercede.

DEER

Venison schedules were flat this week as the currency eroded the earlier optimism but lower numbers will keep demand strong.

Deer Industry NZ reports the Passion 2 Profit multi company venison trial in Europe looking to increase summer chilled venison consumption was a success, and will be extended into Belgium this year.

There was positive feedback from the chefs and if significant summer sales can be achieved and the seasonal pricing extended, venison production will get even more profitable with lower costs from summer pasture utilization.

Early stags up north will soon be casting their buttons to herald the start of the new seasons growth of velvet, and growers will be hopeful the increasing volumes of product will have little affect on this years pricing.