The Sheep Deer and Cattle Report: Sheep and cattle breeders savour price lifts as feed and shortages drive demand

LAMB

More lifts in lamb schedules, that now puts a 17.5kg lamb $14-$15 ahead of last year’s prices.

Shortages rule in all of NZ’s main lamb markets, and with the Brexit effect still unclear, prices keep growing.

Some questions are now being asked about what the final tally of processed lambs will be, as the kill statistics continue to lag behind last year.

Surplus feed and forward contracts have influenced store lamb purchasing decisions as traders get a better picture of where their margins will be.

Store lamb values are now $15-$20 ahead of last year, as traders become desperate for numbers to eat the surplus feed.

Silver Fern Farms released positive results from its lamb eating quality trial it ran in the US and NZ.

It showed the biggest influences of taste were ensuring the right cuts were aged and cooked properly, and if these factors were done, other influences made little difference to the end result.

Alliance plans to install $10 million dollars of robotic technology to improve efficiency and yields in processing, in its Dannevirke plant.

WOOL

Last week’s southern auction saw new lows for this troubled product, after vendors tried to reoffer previously unsold lots.

The market reacted negatively to these extra volumes and only 46% of the sale sold, and analysts suggest such poor sale levels were only last seen in Wool Board intervention days.

Prices for the wool that did sell, were back only 9-15c/kg clean, but the ever growing stocks of stored wool could now over hang the market into the new year’s clip.

BEEF
The search to find the best quality steak starts this week as beef prices maintain their strong run.

Prices for prime beef prices remained stable this week but some easing was seen in the cow schedules as numbers of cull cows started to increase at processors.

Weaner beef sales continued with vigor in the South Island, producing record results from heavier than normal animals after a good grass season in the foothills.

Few beasts are selling for under $1000 per head, and purchasers will need to achieve fast growth rates until finishing, to protect themselves against an inevitable fall in beef prices.

Older store stock has also moved up in price with calf demand but the 20-40c/kg LWT over finished animals will eat into margins unless a big rise is seen in the late spring.

DEER
Stable venison schedules continue on the back of supply shortages, while on the farm the cooler weather has triggered the stags into the roar and onset of mating.

Above average weaning weights have been reported from foothill properties, and the race begins to produce 100kg animals for the spring chilled markets.

Weaner deer sales start soon and breeders will be hopeful demand returns for surplus females after years selling at meat prices.