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The Sheep Deer and Cattle Report: Beef prices running hot and price prospects look sound for velvet

Rural News
The Sheep Deer and Cattle Report: Beef prices running hot and price prospects look sound for velvet

BEEF

The beef market is strong, shown by record export schedules for prime beef and near record ones for bulls, and the local market even hotter with some prime steers at saleyards receiving 270c/kg lwt and many store animals selling for above 250c/kg.

The milder winter has helped bring many store animals on in better condition than normal, and strong interest is being shown in beef cross bobby calves for future expanded production.

With global corn stocks hitting a 27 yr high and overall grain supplies in surplus, combined with a beef market in the US where cow numbers are the lowest since the 1950’s, this should ensure beef prices stay strong for a while, and allow NZ producers  time to invest in this sectors future.

LAMB

No changes on lamb pricing this week as prospects remain flat at a time when traditionally demand from short supply is strong.

The lessons of previous years have been heeded as financial pressure limits risk taking in lamb trading by exporters.

Local trade lambs are in demand however and prices peaked in indicator saleyards as the milder winter weather has allowed quality animals to be offered.

Allied Livestock report they are back in the black after refocusing on their core livestock business again after losing their way on speculation.

Lincoln University announces they have now entered their third farming partnership with a sheep and beef demonstration farm north of Bulls as they look to play their part in agricultural education and improving profitability on these type of farms.

WOOL

The latest South Island wool sale saw the market consolidate on the back of supply shortages and with the currency slowly weakening, helping to keep this fibre competitive.

Primary Wools looks to buy 5% of Wool Equities and announces a goal to join with Wools of NZ to create one strong Co Operative to market wool for crossbred farmers of NZ.

DEER

Venison schedules move again upwards, after a long off - peak season and less product in store in NZ.

The industry reports the price differential between NZ venison and European game is growing as the market shows it is prepared to pay a premium for quality product.

The northern hemisphere velvet season has shown positive pricing signs that should carry over into NZ and velvet marketers believe a small increase in production can be absorbed at these prices.

Still no progress with the free trade negotiations with South Korea which if successful would remove significant taxes and tariffs off imported velvet.

Farmers are reminded that velvet is a high value health product and should be removed  under all animal welfare guidelines and stored in clean hygienic freezers.

Saleyard Prime Steer

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cents/kg LWT
cents/kg LWT

 

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