DAIRY
Westerly conditions have brought milder weather and a thaw for snow affected areas but with plenty of winter to go yet, supplement supplies are being heavily utilized.
Some calves are appearing in northern herds and magnesium supplementation is now standard, while in other areas advisers suggest winter is a good time to check effluent systems especially storm water diversion plans.
A dairy leader has chided unbalanced media environmental reporting that refuses to acknowledge poor urban performance but highlights all dairy spills.
Farmers and Fonterra have signed up for commitments of fresh water protection on dairy farms showing leadership on the environment.
As the global trade auction celebrated 5 years of success, prices again lifted at the latest event, even with a big rise in volume of product sold.
Volatility in results continues, with forward lots making a variation of prices both up and down, as supplies tighten further and the market appears unsure how to react.
The USDA report corn planting acreage is the highest since the 1930’s, and this could see a feed price correction next year and a corresponding response in increase of production from the US dairy herd.
The Chinese regulators tighten infant formulae rules as they strive to ensure product safety is paramount for this products insatiable demand.
Fonterra cut 300 jobs from middle management as it looks to prune its costs in administration by over $60 million, and also reports an over subscribed support for its Guaranteed Milk Price of $7/kg that will now be allocated evenly to 40% of commitments.
LAMB
With each supply driven lift in lamb schedules, comes more calls for urgency in red meat reforms in case next years better prices covers up the need and commitment for long term change.
Failure to reform the red meat sector will be seen as an “opportunity lost for NZ’ states MIE chair Richard Young and as Meat Company talks near the end of July deadline, reports suggest lack of industry unanimity.
Blue Sky Meats reported a significant loss from their last financial year and Silver Fern Farms warns of only a neutral profit in 2012/13, even with the bigger drought induced stock volumes.
ANZ economist Con Williams warns the sector that 20% of sheep and beef farmers carry 60% of the debt, and are under pressure with liquidity and profit levels, and no magic answers appear from Meat Industry conference on industry reform.
Scanning results are mixed with early lambing flocks and those that were slow to destock well back on average, but many later mobs responded well to the flushing of the mild autumn growth.
In-lamb ewes are appearing in saleyards and achieving strong prices as the lack of stock is driving demand.
WOOL
No wool sale last week as exporters reflect on the recent lift in prices that they believe are due to short term supply issues and currency, but express caution that we are in for a period of long term additional demand.
Recent windy weather will help winter shearing get back on track and return volumes to rostered levels, but many northern fleeces will be behind in weight and quality as a result of the drought.
BEEF
Although high by historical levels world beef prices are under pressure as NZ schedules remain in a static state.
Exporters have welcomed the weaker NZ dollar but are unsure how long it will last, with one bank predicting the currency to climb back to average 81c against the USD next year.
In northern saleyards lighter numbers of killable cattle are driving demand but interest is being rekindled in younger animals as farmers restock in anticipation of a growthy spring.
South Island irrigation schemes are progressing on track gaining government backing and farmer support for schemes that will utilize storage to guarantee reliable water supply for an efficient investment.
Meat supplies are blocked again in China at the wharf as officials change the paper work rules, delaying delivery of meat to the market place.
DEER
More venison schedule lifts as the chilled season looms but at prices that are 117c/kg behind the five year average will do little to rekindle investment and growth this sector desperately needs.
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