The Weekly Livestock report: Yearly highs in beef prices, more dairy payout predictions and sheep and deer prices close to last year

BEEF

Spring fever has hit beef schedules with prime, manufacturing and local trade prices hitting yearly highs and similar lifts are also seen in the saleyards as processors endeavour to meet chilled demand.

With many areas of Australia now with feed, the drought kill has eased  and volumes are lowering making it easier for NZ product to compete.

The early feed is driving demand for store cattle offered at saleyards in NZ, and in some areas numbers are back as well.

Saleyard prime steer values have been increasing since April and operators that bought quality 18 month animals in the autumn will have made good margins.

July bobby calf processing numbers are 50 % ahead of last year and reflect the kind early conditions and dairy growth.

Rearers have been active in the market and numbers from this source are valuable in meeting demand for our manufacturing beef product into the US which is predicted to pick up again later in the year.

Beef calves are now being born with the weather helping survival rates, and cows have recovered well from the earlier drought conditions, should milk well.

DEER

The Deer Industry is voicing its concerns with AgResearch’s restructure away from Invermay, with major research and productivity projects at risk if experienced personnel is lost.

Venison schedules continue their spring rises but are still $15/hd behind last year and possibly a $50/hd  behind where the industry may grow their numbers again.

An innovative program to restimulate growth is being run by the industry and a workshop for farmers and managers under 35 attracted 55 participants recently in Queenstown. Also, a recent fielday at Sheffield saw over a 100 interested farmers view an efficent one man breeding and finishing operation, to reinforce the view that deer farming is still a profitable landuse alternative.

The rising yearlings seen were on target for the chilled harvest and feed levels were ahead of the normal for the well condition breeding hinds.

The new velvet season starts with positive marketing news and entry by one company into Australia’s therapeutic sector with processed product, is a first for the industry.

After the successful use of contracts to purchase velvet last year by ProVelco, the price announcement for this year’s deal will be awaited with interest.

DAIRY

Southland reports they have experienced the warmest winter for a 100 years, although at writing a southerly blast is due to race up the country.

Some silage has been made further north to fill reserves that were seriously depleted from the drought last year.

Feed covers nationally are well ahead of the average and northern dairy managers are now focusing on herd reproduction to attain a goal of 90% submission in 3 weeks, and giving employees extra time off to compensate for the long hours worked during calving.

Supplement feeding is being stopped and some operators are mowing ahead of the milking herd to increase utilization of the pasture, and advisers are urging everyone to monitor and record feed regularly to maintain pasture quality.

Fonterra surprised, by again increasing the projected payout to $7.80/kg ms and Westland also shared the optimistic future view, with a $7.60-$8 prediction.

This will again boost the economy by a huge amount and reinforce the importance of a vibrant and successful dairy industry.

Further tests by the Ministry of Primary Industries on Fonterra’s infected milk powder showed it did not have botulism as first suspected, but this has not eased the markets quality concerns, and all in the dairy industry are in full repair mode to restore confidence, with Fonterra officials off to China and politicians active in Sri Lanka.

The second milk powder drier has been commissioned in Darfield and this is reputed to have the biggest productive output in the world, at 700 tonnes a day.

The rapid expansion of the dairy sector has seen farm worker shortages in the south and Venture Southland has invested actively in promoting agricultural employment to new entrants.

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LAMB

The quiet period in the lamb trade has seen processors negotiating chilled lamb supplies for Christmas, and they will be hoping for high survival rates at lambing as it is now obvious, shortages will occur.

Early survival rates have been good but the bulk of ewes are just starting and most will lamb with good condition scores and above average covers.

Middle cut demand is still an issue, although exporters are reporting low frozen stocks that should bode well for the start of the new season.

Schedules are now very close to where they were a year ago and the need to retain regular chilled customers could see exporters increase prices further.

Contracts for early spring are in the $5.85 range and give hope that many farmers will receive returns $100 plus needed to sustain this industry.

The announcement that Malcolm Bailey will lead the Red Meat Primary Growth Partnership has been received positively, but many are still very disappointed at the lack of red meat reform.

Rumours suggest the smaller players with specialty plants are holding up any serious changes, as self interest on who pays for the down sizing of plants with over capacity.

WOOL

With the bulk of the pre-lamb shearing completed, demand continues to be strong for crossbred wools, and at the latest SI auction good volumes of Merino wools saw prices lift significantly over the previous Melbourne sale.

In the last week the currency has traded at lower rates and this is helping price competitiveness and buyers now realise future shortages for wool will occur, and demand should remain strong.

This settled period of weather will help wool quality and it is hoped this will continue over the pre Xmas period so when the bulk of the crossbred flock is shorn better volumes and quality will result.

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Here are some links for updated prices for
- lamb
- beef
- deer
- wool