"There was a continuing decline in the beef breeding herd, down by 1.6 per cent and reflects the trend to more flexible cattle systems. This reinforces the need for better integration with the dairy industry, particularly with genetics, a key area of focus for Beef + Lamb."
Spooner says breeding ewe numbers fell across all regions of New Zealand. They were down by 3.1 per cent overall - but the largest drop was in Marlborough and Canterbury (-6.5 per cent) due to the ongoing drought conditions.
"North Island ewe numbers decreased 2.9 per cent to 9 million with drought conditions and facial eczema a significant cause. South Island numbers dropped 3.3 per cent to 9.5 million and were also affected significantly by drought. Reducing capital stock numbers is often the least preferred option for farmers so it does reflect a very challenging year."
Spooner says the national hogget flock is also down on last year.
"Hogget numbers decreased 3 per cent to 8.9 million, but the fall was most dramatic in the North Island - down 6.9 per cent. On the East Coast, some of the decrease was driven by a reduced lambing percentage in spring 2015 and the influence of dry conditions forcing destocking in autumn 2016.
"In Taranaki-Manawatu, lambs were finished earlier, in response to the conditions, leading to fewer head on hand at season close. Marlborough and Canterbury hogget numbers increased by 4.8 per cent with higher numbers of bought in trade hoggets held at season end.
"Ewe condition and scanning results have been variable across New Zealand and the lamb crop is expected to be down by 2.9 per cent, to 23.3 million - 0.7 million fewer than last season. This is the result of several factors, including fewer breeding ewes and higher empty rates which will reduce lambs born to ewes mated."
Spooner said many farmers would want to have more stock on-hand at this time of year, but a combination of dairy farmers rearing more replacements themselves (normally grazed on sheep and beef farms), climatic conditions that have led to early sales of stock, lower pasture covers in some regions and in some cases a shortage of available of replacement stock, are all factors.
The challenge for farmers will be maximising the performance of animals on hand and secondly as farming conditions allow finding profitable stock classes to restock with.
Beef + Lamb will be working with its regionally-based Farmer Council to provide relevant information to assist farmers with these decisions.
This includes a significant focus on proactively managing the ongoing impact of last season's facial eczema outbreak.
Beef + Lamb's Economic Service carries out a stock number survey annually. Read the full report at www.beeflambnz.com/stock-survey.