The Weekly Livestock Report

DAIRY

Early spring progresses without too many weather surprises.

However, the far north is suffering from wet conditions after a month of rain causing pugging damage causing farmers to spell pastures and feed large amounts of supplementary feed.

The use of nitrogen and magnesium oxide is common on many farms nationally as operators seek to express the potential of the growing spring flush.

The rush and importance to prepare animals for mating is on, as most are aware of  the cost of dry cows to the bottom line profit on dairy farms.

Farm expansion and conversions in the south are being seen in bobby veal processing numbers, which have lifted 18% since last year and it is hoped an increase in later beef crossed calves will fuel the need of the strong performing beef sector.

The international demand for dairy commodities continues it’s rebound, with a 2.4% lift in global dairytrade auction prices, stimulated by a drop in milk output and an increase in dairy cow slaughter numbers in the US as a result of the prolonged drought.

Fonterra announced their final result for the 2011/12 year of $6.40/kg ms for a fully shared up farmer. The result is made up of $6.08 farmgate milk price plus a dividend of 32 cents per share with retentions of 10 cents a share.

China’s interest in dairy expansion is seen in Tasmania with their proposal to invest in Australia’s largest dairy operation owned now primarily, by the New Plymouth District council.

LAMB

A static week in lamb schedules, and signs that industry overcapacity is biting, with Blue Sky Meats announcing that last years poor financial performance has resulted in it looking to downsize, with proposals of weekend job losses and paycuts at it’s Southland plant.

While this years lamb processing numbers are predicted to rise, this has been nullified by a lower mutton kill which is nearly a million head behind last year, in the August figures.

The sheep sector in Australia has seen a similar fall from grace with spring sheep prices only half what they were last year, and little short term optimism of a rise.

The power of the consumer on animal welfare issues has seen Alliance leading a research project that looks at tail docking of lambs, and the consequences of leaving then intact or at varying lengths. With British supermarket Sainsburys a partner in the trial, growers should be fully aware that proper scientific research is needed to back up the necessity of this common management procedure or important markets could be lost and perceptions damaged for our livestock industry.

WOOL

The North Island wool auction saw strong crossbred wool indicators firm slightly and the big numbers of hogget wools ease in price.

Melbourne wool merchant Lempriere Holdings has made a takeover offer for Wool Services International and owners of 75% of their shares have agreed to the bid making Cavaliers plan to purchase this company and rationalize NZ’s scouring capacity more difficult to achieve.

BEEF

A stable week for beef schedules but with prices well ahead of last year for both bull and prime animals optimism remains for price prospects for this product.

Feed is starting to drive store stock sales and with future demand predicted to be driven by a shortage of supply from the drought ravaged US and pessimism for sheep price prospects, farmers look keen to increase their beef numbers.

DEER

One processor has moved venison schedules past the $8 mark but now with only 4 weeks to the of end of October and the Christmas shipping deadlines, it appears last years peaks are now not going to be achieved.

The fixed price contract has been received positively by velvet growers that will allow stable returns in an industry historically plagued by volatile pricing.