DAIRY
As predicted the rains have been followed by mild conditions and pasture growth is good in most regions but farmers are warned to carefully plan for winter and early spring when the costs of underfeeding are magnified.
Regrowth grass from the drought is low in DM but high in protein and many are using some supplementation to build covers, BCS, and stretch the rotation as the first frosts appear and soon growth rates will fall.
Those that are still milking are harvesting from cows with good condition and pregnancy records but national figures show that this year’s production will be behind last year.
A stock take from the arable sector reveals plenty of local grain is available for feed supplementation which seems a less risky biosecurity proposition than imported palm kernel.
Gypsy day preparations are in full swing and farmers are reminded to prepare cows for road transport and ensure all NAIT responsibilities and effluent rules are taken care of.
US milk production, a big influence in the world’s dairy trade, is predicted to rise on the back of better than expected corn stocks and steady price levels.
Another trader, Amul has entered the global trading platform and will compete with Fonterra on whole milk powder supply, and the growth of this selling system will add strength to the price indicators in the dairy market.
LAMB
More supply driven lifts in lamb schedules coupled with rain and grass growth has restored a little optimism to the lamb scene, and with the local UK supply predicted to be down because of the weather, the turnaround could be quicker than expected.
Good autumn grass growth has rekindled interest in store lambs and the sales at Matawhero and Fielding were strong.
Disappointing news from MacDonalds this week as they withdrew the lamb burger from its sales but with strong interest in lower priced cuts in China this should have little affect on farmer returns.
More positive debate on meat industry restructuring as the will for change grows but the importance of urgency is revealed by falling sheep numbers at the expense of dairy.
WOOL
A weaker currency and a restricted supply aided the lift in most wool types at the latest South Island wool auction.
With next weeks North Island auction cancelled due to lack of volumes, crossbred growers will be pleased to see the coarse indicator now back over $4 for only the second time this season and moving to regain the premium prelamb wools deserve.
BEEF
Again more small lifts in beef schedules, but processors still report sluggish overseas markets as processing volumes especially in the north slow further.
In Australia beef producers are under real pressure as record kills of animals out of the dry areas, coupled with the restrictions placed on the live export trade, sees farmers pleading for government assistance to stay viable.
The store cattle market in many saleyards has been difficult as lighter poorer condition animals failed to find new owners and some animals selling under meat value.
Every sale is being driven by feed and with little spare supplements about, farmers are culling older animals before winter.
A PGP project that aims to create a new category of NZ beef with marbled grass fed product using Wagyu genes and an integrated supply chain has started, and aims to return $6/kg for the beef.
DEER
Still no movement in the summer seasonal decline of schedule values although one company is advertising winter venison contracts.
The annual conference for deer farmers will be held in Wellington this year and hopefully an announcement of the new CEO that will help invigorate this industry back to growth again.
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