Money still to be made in farming if the timing is right, despite the fickle summer weather

The memory of last year's drought lingers and is putting pressure on the store lamb price. Photo / File

There is still good money to be made in farming if the timing is right, especially when the fickle summer weather bites.

Independent Whanganui commentator, farmer, livestock company owner, rural real estate agent and Horizons regional councillor David Cotton said the year began with a bang, but warned the pressure on price would continue to head downward, with a large number of farmers still remembering last year's drought.

"We were lucky in this area to receive more rain over January (86mm) which is a real bonus, giving us not only an abundance of feed, but good quality feed," Cotton said.

David Cotton

"It also gave the green feed crops a good drink to boost their yields. But this has started to change over early February. The heat and dry winds have started to take that quality away. I always keep an eye on the Whangaehu hills for the first sign of a change in feed conditions.

"With no livestock auctions over Christmas/New Year the first sales for 2021 started with a real bang as farmers loaded up with store lambs pushing the liveweight price well up from the December $2.90/kg to average close to $3.30/kg with even some lighter lambs breaking $3.50/kg.

"The strong prices for lambs continued through most of January as green feed crops started to need mouths. But all good things do come to an end and the first sign that the dry was starting to bite did come - January 27 when the Stortford Lodge sale took a hit in liveweight price.

"Feilding followed suit with a number of light lambs down around $2.60/kg. Last week again a downward trend with the average liveweight back to around $2.90/kg.

"I would except the pressure on price to continue down with a large number of farmers still remembering last year's drought," Cotton said.

The ewe fairs traded well, better than expected in most cases.

"The contract out for mutton over late February through to May is at $5.30/kg-$5.80/kg and that's a real bonus for sheep farmers and has certainly underpinned the second half of the ewe fairs. The mutton price, currently at $5.10/kg, has held up very well over the season and in my view been more stable than both beef and lamb In recent times."

He said there were also contracts out for lambs over a similar period at $7/kg-$7.15/kg which was a fantastic premium on the current spot market of around $6.50/kg.

"Prime cattle schedules have been under pressure and even the local trade price was under $5.00/kg – it's a good time to fill up the freezer on cheap quality steak for the barbecue from your local supermarket."

Store cattle prices have held up okay when taking into account the current beef schedules, Cotton said.

"But they may not have been as high as vendors expectations given all the feed blowing in the wind around the country.

"I will leave you with some advice I received 40 years ago.

"A wise old bearded farmer up the Waitotara Valley told me as a young livestock agent, 'son, it's better to have sold your livestock a week too early than a week too late'.

"Very wise words I have found over the years and this advice can be applied not only to the livestock markets, but to the property and sharemarkets as well.

"There is good money in it, particularly if you get your timing right," Cotton said.