The Sheep Deer and Cattle Report: Lamb numbers sure to be down next year after a difficult autumn and sheep market

LAMB

At last a movement by the big processors in lamb schedules as it appears the market can now sustain a lift.

The area classified as dry has expanded and the worst areas in the South Island are as bad as they have been, with farmers in those areas now facing months of supplementary feeding until it rains again.

Winter brassica crops are reasonable, feed grains are cheap and temperatures mild are the only consolations, but the implications of these feed shortages and the severity of facial ecema will show itself if the winter is severe and the spring feed tight.

With a tight autumn affecting many sheep areas and facial ecema up north, already some are suggesting lamb numbers will fall again putting further pressure on excess killing capacity of the processing works.

Some price rises are being seen in the Chinese and Middle East lamb markets as they realise shortages could arise, and with low stocks, demand is lifting for mutton as well.

Farmlands has announced there will be no rebate this year as farmers tighten their spending in response to poor returns from dairy and sheep meats.

EFTPOS transactions in the provinces reveal spending has stopped as farmers hunker down to survive the lamb and dairy price downturn.

Local trade lamb schedules are lifting in the south but fell in the north, and this has flowed into prices at the saleyards although lack of surplus feed is restricting some managers from growing animals out to heavier weights.

WOOL
The single South Island wool auction last week saw prices gain a good lift, as the small offering including many previously passed lots, met strong demand on a falling currency.

Crossbred fleece prices rose by 3-5%, second shear a bit less, and even lambs wool prices firmed after regular falls all year.

Next week’s North Island sale offerings are 50% below the rostered amounts, and these shortages are sure to help keep prices respectable.

Wool exporters comment that vegetable matter in lots has been heavily discounted and more care in the shed would improve returns for those whose product is contaminated.

BEEF
Another small lift in beef schedules this week, as shortages now appear likely, and exporters report animals to fulfill chilled orders are hard to source.

The final calf sales have finished in Canterbury and Marlborough, and prices and quality offered have remained strong right until the end.

Nationally calf prices have been strong all season and average prices for a 250kg weaner steer and heifer are $160-$170 a head better than last year, and North Island vendors recieving a premium over their southern breeders.

Good quality store cows are also being enthusiastically supported as it appears livestock farmers with feed are improving their cattle ratios at the expense of sheep.

A rise last week in local trade schedules was not enough to lift prime steer prices at the saleyards, as it appears the numbers of quality animals are just not around.

DEER

No changes in venison schedules as yet, but shortages are sure to soon drive prices upward, but everyone in the sector hopes this demand does not make the product uncompetitive, as history has proven sustainable growth is the goal.

Dunedin hosts the annual Deer Farmers Conference this week, and with both products selling well and a well constructed plan for the future, it is sure to be a buoyant affair.

Silver Fern Farms has announced a plan to relocate it Islington plant at Christchurch to Pareora after the lease runs due and it makes sense to utilise it's cold storage capacity in the southern multi species plant.