“It’s tough selling, that’s for sure.”
Daniell is on a selling trip in the lower South Island.
Three truck-and-trailer loads travelled down several weeks ago.
He said they would sell for prices similar to last year’s – average rams were $1450, a few better ones would go for $1950, and the real elite for $2750 because farmers still sought out the good genetics.
“Genetics is a critical part of things and we can’t produce these genetics from nothing.
“There’s a lot of work goes on behind the scenes and yeah, we lost money last year, last financial year, and we’re having to right-size to a new level of ram demand and reduce costs.”
While the Romney breed was still the mainstay of the New Zealand flock, Daniell said sheep that shed wool or did not produce wool were popular and he was expecting a good up-take of Nudie rams.
Nudies had been bred in the United Kingdom for more than 50 years, using genetics from Welsh Mountain and Wiltshire sheep.
“It’s building quietly all the time. It’s pretty exciting really.”
Gary Massicks, a Manawatū-based agricultural consultant with BakerAg, believed some stud breeders would take a hit on their profits because of the poor state of sheep farmers’ books.
He said it was the lack of cashflow rather than a smaller national flock driving ram-purchasing decisions.
He was talking with clients about cutting back on ram numbers.
“Can these boys do another year? They normally buy 10; this year they might only buy eight.
“Last year they spent $1000 on a ram, this year they can only spend $800.
“Breeders [farmers who farm lambs for meat] are having [to look] at cutting some of their expenses just to save a bit of money.
“And then of course the studs are having to meet the market a bit.
“The studs are realistic about that because of course they’re in the same market.”
Farmers were still “chasing genetics”, he said, but the trade-off in terms of cashflow at the moment was buying fewer rams.
The ram-selling season started in October and runs until December.
– RNZ
