The Sheep Deer and Cattle Report: Red meat prices ease but velvet sales positive for the fifth year running

LAMB

More easing of lamb schedules as processing volumes increase and more product is frozen down, with Silver Fern Farms Keith Cooper reporting peak season pricing of $5.30-$5.50/kg was expected.

He said this is an improvement of a $1/kg on last year and believed it was possible to rebuild value over two seasons to a $6-$7/kg return

Weaning drafts are now common in early areas but only the very good lambs have been able to top $100 a head, which many see as a minimum to retain numbers in an at pressure sheep sector.

Local trade lamb schedules have reduced as supply increases but are still well ahead of export prices.

Mutton schedules have also eased from the peak but are $10 ahead of last year but with supply pressures from last years drought, are predicted to remain firm with strong Chinese demand.

Store lambs are flowing into the NI saleyards and reaching values of $75-$85/head but as yet few have been seen in the south as Nov/Dec rains will determine how many are quit early.

 WOOL

The latest South Island wool sale saw values stabilize as the market prepares for the increasing summer volumes, but weakness in the mid micron and merino market remains.

Elders reported the first profit for four years and credited a much improved return from its wool enterprises where it increased market share, for it’s better result.

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BEEF

A small easing of beef schedules this week, as processing volumes build, and pressure from Australian competition in all of  NZ’s markets.

US beef imports are predicted to rise as low domestic feed prices and herd rebuilding affects local production.

The Indonesians are reviewing cattle imports from Australia after the spying spat, and this could change market opportunities for our beef marketers.

Ag Research scientists are asking farmers to look out for white tip disease in Californian thistles, as they look for a biological solution to this problem pasture weed.

Porina moths are now flighing which will indicate when to adopt measures to control infestations in young pastures and vunerable newly emergent seedlings.

DEER

More venison schedule falls, as prices are now at levels not seen for 6 years and will do little to rekindle growth prospects for this industry, as too many females are still being killed.

Chilled sales have been strong but stiff competition from Eastern European countries have put pressure on frozen carcase pricing but reports do suggest stocks held are low and if the currency behaves, the summer schedule fall may not be as bad as earlier feared.

The first regional Deer Industry Advance Parties for the Passion 2 Profit scheme are underway with a strong focus to increase the farms productive performance by planned animal health, improved feeding and targeted genetics the main themes.

Five good years of stable velvet prices will encourage reinvestment for quality genes in stags, on the back of a growing interest from China and specialist producers are happy with profits generated from this product.

Growers have adapted well to grading changes which focused on cutting velvet earlier and rounded tops for super grades.