Cow numbers are also declining, with forecasts the national breeding cow herd fell below 1 million for the first time last year.
Prices for weaned calves at the start of the new sales season in New Zealand are hitting record highs amid increased demand and lower supply.
Sales of six-month-old weaner steers and heifers this month at Stortford Lodge in Hastings, an early benchmark ahead of the peak sales period in April,
rose between 17 and 29 per cent on 2015, which was itself at record levels, according to AgriHQ. Weaner sales generally finish early May.
Farmers who shed stock ahead of summer last year on concern about the impact of a dry El Nino weather pattern were now seeking to restock as rain in many areas through January stimulated pasture growth. Cow numbers are also declining, with industry body Beef + Lamb New Zealand forecasting the national breeding cow herd fell below 1 million for the first time last year. That led to fewer weaner calves being born last spring with early estimates forecasting a drop of 50,000 head to 1.043 million, according to AgriHQ's 'Weaner Fair Outlook 2016' report.
"There is just so much demand for the cattle," said AgriHQ analyst Mel Croad, who authored the report. The first two Stortford Lodge fairs in early March mustered just over 1250 head, close to 200 head down on 2015 volumes. Some 49 per cent of the 445 steers made more than $1000 a head, with a top price of $1125 for a line of 280kg South Devon cross. That compares with the corresponding sale in 2015 when the highest exotic steer price was $940 a head, which Croad said was "phenomenal" growth.
The average exotic steer price in the first sale of 2016 was $892 a head, up from $765 a head last year despite weights being back 12kg on last year.
