The Sheep, Deer and Cattle Report: Lamb prices hold even after Easter chilled period ends and wool price lift continues with extra volumes

LAMB

Lamb schedules continue to lift this week, as the Easter chilled period ends and processors grapple with the remaining supply estimates.

Forecasts suggests the national lamb kill will be back on earlier predictions, and this along with strong frozen sales, could keep prices from falling, even as chilled demand reduces.

Analysts report that the Easter chilled lambs returned around $5.20/kg for finishers, but margins have been tight, on supply limitations and an unfavourable currency.

The main meat processors are in limbo as they wait and see how Brexit pans out, as 200,000 tonnes of product could be at risk.

With sheep numbers pushed back into the hills and much of the high country retired, most of the store lambs are now produced further back.

A wetter than normal summer from westerly conditions in the South Island hills, has seen well fed stock fetch high prices at the on farm store lamb sales.

Pelts continue to be a big problem with some grades unprofitable, and values are only a third what they were 4 years ago.

Trade negotiators are working very hard to resume exports to Iran as relationships thaw, and if successful will give lamb and sheepmeat exports a real boost.

WOOL

This week’s double island auction was pivotable in retaining the recent price lifts for crossbred wool, as nearly 16,000 bales were offered for sale.

Wool price indicators rose again despite the volumes, and buyers believe the bottom has now passed, as prices have lifted 38-56c/kg clean from where they were a month ago.

Passings were higher in the south at 16%, than the north at 8%, but the policy of restricting supply during these tough price times seems to have worked.

BEEF
This week bull schedules eased, as demand out of the US weakened, even with low kill numbers in the North Island where feed is plentiful after recent rains..

Prime animals are still in demand, with the short supply keeping prices firm and export schedules driven higher in the north by rising local trade prices.

The first beef calf sales are due to start in the North Island this week amid reports one processor has purchased calves in the south for $3.70/kg lwt.

Good numbers were seen at the Tuakau saleyards where weaner steers sold at values ahead of last year, but weaner heifers in the 150-250kg range were about $50/hd cheaper.

Cattle hides also experienced a tough year with the value earnt dropping by 30%, and with NZ losing its offal market to Russia both have impacted on schedule values.

DEER
More lifts for venison schedules, as lower supplies reduces slaughter rates amid strong demand for frozen product.

National production of venison was down 22% for the year ended December but with the hind kill now back to 50% it is apparent farmers are keeping more females to expand the herd.

Silver Fern Farms opens its new venison plant at Pareora, and now the two biggest processors have centraly sited plants in South Canterbury.

Industry officials suggest the present velvet price levels may temper growth, but the tariff cuts for processed product into Korea have been implemented.

The Chinese audit revealed shed hygiene, traceability and cold storage integrity were issues for concern, and changes will be needed before the 2017/18 season.

Sire stag sales have been described as patchy with many vendors realising values behind last year especially for sires with velvet genes.

However strong support for venison sires was evident with many buyers using breeding values to make their selections.