Next year ushers in a golden era for NZ sheep and beef farms, according to Graeme Ogle of farm management software company Farmax. Lamb prices are at historic highs despite the major financial meltdown affecting the globe reports Rural News. Ogle says good lamb prices bode well for our export markets as their financial recovery continues. And beef prices are continuing to hold up, another good sign for NZ farmers. But he warns that simple farm systems won't profit in this "˜golden era'. The top 20% of sheep and beef farms are complex units, built around extracting maximum dollars from top livestock and pasture genetics. Factors adding to complexity include large maximum liveweight gains with exact lean-to-fat ratios for animals grown to the tight specifications of the overseas customer. And the farmer must extract extra margins from livestock trading over the year to balance feed availability and stock demand. Profitable trading involves taking risks and using the best information available. The trading policy will require constant updating in the light of latest information. This is all best knitted together with a computer farm management program like Farmax, with high-speed internet connection from the farmhouse to the global business community. Knowledge is power. Such a complex farm system based on animal production plus astute stock trading should deliver another $100,000 in profit to the average sheep and beef farm. "˜Keeping it simple won't work any more.'
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