Further lifts in lamb schedules this week, as feed has slowed processing numbers and companies report 3-4 day working weeks are common.
Procurement pressure, firm market demand, and some flock restocking are all behind this schedule resurgence, and with the winter period near, chilled production will soon again influence pricing levels.
Store lamb prices are still very strong, influenced somewhat by the improved quality of animals offered, and some believe an over priced weaner beef market.
The feed situation nationally is now very positive and sheep farmers will be hopeful this plentiful autumn grass surplus will transfer into additional lambs next spring.
Silver Fern Farms is working to sell product into Iran again next year, and with progress on the chilled meat trade for China, prospects for sheep meats are now much brighter.
Time will be needed to build the infrastructure and capability to manage chilled product but the extra value earned will make this process worthwhile.
ANZCO reported a 21% lift in profit at $17million, as better efficiencies beats lower revenue to boost returns.
Last week’s North Island auction saw prices ease, and only 80% of the sale was sold.
Stocks held are now becoming a concern and industry participants encourage growers to not carryover too much stock into the new season.
Limited demand for crossbred wools is the core issue, and despite the currency easing indicators lost most of the gains they made last month.
More gains for beef classes this week, as processors report a firm US market due to low supplies out of Australia and NZ.
China is the largest importer of Brazilian beef and if the temporary ban remains on for long NZ beef prices could improve.
South Island local trade prices are 0.60c/kg ahead of the autumn prices last year, and 18 month store animals have surged in demand on the back of a hot weaner beef market.
Record prices are being received for these young animals and with most selling around $900-$1000/head, purchasers will be hoping the beef boom continues for a year or so yet.
A Landcorp name change was denied by the Minister as a waste of time and money, especially when no dividend has been paid to the Government in the last two years.
Many farmers also wonder why the Crown is in the business of farming, and suggest it should be sold once all treaty obligations are met.
Strong schedule prices are maintained this week, as the deer industry announces a summer Cervena trial for Germany, following on from their success in the Netherlands and Belgium.
Reducing the seasonality of venison by producing more chilled product is working for the sector, and producers are now getting year round profitable returns.
At these prices and better, winter and spring contracts are attracting strong interest and programmes that reduce having to freeze down surplus product will keep values strong.
Processing numbers are 10% below last year as herds are rebuild, and exporters are finding it hard to meet loyal customer’s needs.