LAMB
More signs the lamb schedule may have bottomed as another processor lifts prices in response to demand for chilled product and concerns about where the lambs may come from in the late winter and spring.
Local trade prices however are still falling, and with the big export processors still yet to budge on the present uneconomic returns, the mood is gloomy from lamb producers.
They argue while demand is improving it is from a low base and small volumes, so any upturn may take a while yet, possibly by May when supplies should tighten.
Saleyard store lamb prices have lifted significantly in the north and will show very low margins on present export prices, but with many areas with plentiful feed and other cattle and dairy grazing options limited, managers will be hoping for a big lift in late winter and early spring schedule prices to make a profit.
North Canterbury received a much needed boost in funding from the Governments irrigation fund last week to help the Hurunui water scheme to start stage 1, but such is the severity of the present drought many in the area will have some tough financial decisions on how they fund water to their farms.
WOOL
The single North Island sale saw prices again fall as the stronger currency and easing demand took the shine out of what had been a great season for wool.
The Reserve Banks efforts to lower the dollar seem to have no effect on the currency as it remains stubbornly high (last week it was 66c now 69c) affecting all exporters returns.
BEEF
Beef schedules continue to ease on the back of US importers reluctance to push cow product and the firming currency, but China’s steady demand and Indonesian interest with a new round of quota due, has kept prime cuts sound.
Stocks in the US are starting to clear exporters report, and with the Aussies and US farmers rebuilding their herds after big droughts and poor prices decimated numbers, the medium term prospects are good for NZ beef producers.
The Canterbury regions first major calf sales at Cheviot and Temuka saw per kg rates similar to that received in the north island and well ahead of last year, although some calves showed the results of the dry.
DEER
More stable schedules this week as managers finish weaning, keep an eye on mating stags, and try to control velvet stags during the roar.
A sharp downturn in production during January and February has been attributed to less hinds killed, and points to the long awaited restocking of herds.
One processors reports reutrns for venison have lifted 14% from last year while mutton, lamb, and dairy returns all fell significantly.
The first weaner auction of the year was held at Mt Arrowsmith last week, and the hybrid weaner stags averaged $6.53/kg lwt while the hinds were cheaper at $5.28.
While the vendor would have been very happy with the per kg price, tough feed conditions lowered the weights this farm would normally supply.
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