The Sheep Deer and Cattle report: Poor pelt returns ease lamb optimism but big beef price lifts continue

LAMB

More lifts in lamb schedule pricing as numbers dwindle and animals start to change to hogget grades and early lambs now less than a month away

However more caution on predicted pricing was issued from the Alliance Group’s management teams as they reported a big fall in demand for the wet lamb skin trade due to an environmental crackdown of tanneries in China that could shave $5-$8 of lamb returns.

Sheep farmers have indicated in the farm confidence survey they plan to increase on farm investment as this sector fights back in the land use changes.

The livestock processing numbers show once again high mutton processing volumes that analysts predict will come to an end and should put supply pressure on prices later on in the season.

Saleyard prime lamb prices reached yearly highs last week and while well shy of the levels seen in 2011, are at prices farmers are willing to invest and profit from in the future.

WOOL

The South Island wool sale saw strong prices continue as the market responded to an easier currency and low supply with wool indicators rising in all micron classes.

The wool levy vote is now being taken with proponents still passionate on their stances and in a surprise announcement Merino NZ is considering trading in crossbred wools.
The receiver has extended by a month offers for Christchurch Yarns  as wool investors organize funds to purchase this downstream business.
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BEEF

Product of the month continues to be beef as processors report very strong demand and prospects that look to be very promising for a few years yet.

Schedule lifts have been in big jumps of up to 40c/kg cwt as spring shortages need enticing premiums for farmers to harvest suitable animals and the price gap has widened between islands.

Spring bull sales have attracted strong prices as the export prices creates a high reserve and many dairy farmers will mate and sell follow up sires to help cash flow issues.

Spring grass, rising schedules and a falling dollar is the perfect tonic for spring store cattle sales and they did not disappoint with strong prices at all saleyards.
 

DEER

More big lifts in venison schedules as one company's pricing reached $8/kg which is where farmers believe it needs to be in the spring for a sustainable industry.

One top operator has reported better returns from his mixed deer operation than from dairy grazing as the industry strives for better levels of performance to improve profits.