The Sheep Deer and Cattle Report: Farmers vote for red meat reform as sheep and beef prices ease again

LAMB

In a week where the industry celebrated the 133 years since the first frozen shipment, farmers are very disappointed with the lamb price plunge, after early season optimism.

Those that secured those early high prices with seasonal contracts have been insulated from the falls, but with half the season’s product still to be harvested, many are feeling the financial pinch.

National kill weights mid January have held remarkably well, considering the slow spring and now dry summer, but this is sure to rapidly change in February and March amid a processing backlog that is up to three weeks in some areas.

The processing statistics show a big increase in lamb numbers harvested, and a suggestion that at this rate they will run out of stock, but the mutton kill is well behind after years of heavy culling.

Store lamb values have stabilised and numbers offered fell this week in the south, and it is hoped the early harvest of crops will ensure irrigated farms will chase trading stock to fill a developing  gap of quality lambs, for the autumn chilled season.

In the North Island, rain has lifted store prices after values fell below their works returns, and good margins appear to be achievable for those with feed.

The Tinwald ewe fair in Mid Canterbury saw only half the yarding offered compared to last year, and prices were soft.

Local trade schedules lifted in the south, as feed shortages has restricted the availability of suitable animals in the dry area, and this could affect lamb prices further into the season.

The Silere merino lamb contract is looking for 100,000 animals, but prices are back on last year after demand was not as strong as Silver Fern Farms had predicted.

WOOL

Another good double island wool auction where crossbred prices lifted by 2.9%, driven by strong demand for lambs wool which again rose, to now sit at levels close to records of 2011.

PGGWrightson signed a wool deal with a US sock maker, for a 150 tonnes of fine micron wool per year, at prices a little below the 10 year average.

Wool Equities announced another yearly loss which now have accumulated to $24.6 million, and will do nothing to improve the optimism for the future of this product.

BEEF

More easing beef schedules again this week, as the kill statistics show processing is now over 20% ahead of last year, as the dry and early high prices pushed the harvest forward.

While processors report short term concerns over the Indonesian ban and a quiet Chinese market, prices are still well ahead of last year, and the US and Australian beef herd will take years to recover, and allow NZ’s supply to fill the market.

Australian cattle herd numbers have suffered a rapid decline, from a 35 year high to a 20 year low, in 2 years of culling due to widespread drought conditions.

At the SFF director elections, chairman Hewett was re-elected, along with MIE candidate Fiona Hancox, whose success reinforces farmer shareholders belief that significant reform is still required in the red meat sector.

DEER

Venison processors report the weak Euro is still causing problems keeping this product competitive with other local game animals, but demand for frozen product remains firm, and prices steady.

The deer sector has been urged to analyse animal health costs, as a part of looking for productivity improvements in their Passion2Profit programme.

In the national Elk velvet competition 6 heads weighed 20kg or more to highlight the progress velvet breeders have made to improve production, with these heads earning $2000 plus yearly.