Lambs have been given preference over mutton as processing plants cope with limited killing space over the Christmas/New Year period.
Lambs have been given preference over mutton as processing plants cope with limited killing space over the Christmas/New Year period.
The weather gods continue to dictate livestock markets, with a slight easing of lamb prices the main talking point down on the farm.
Independent Whanganui livestock commentator, trader and farmer David Cotton said the weather had been kind on the west coast of the North Island and the rain lastweekend should hold feed conditions for the year.
"The markets are generally easy to pick at this time of year and in my opinion all markets are trading at excellent levels," Cotton said.
Farming commentator David Cotton has never seen the outlook so rosy despite a raft of potential threats aimed at the sector.
"Even though the store lamb price has dropped sharply over the last month, store male lambs at 33kg liveweight are still fetching $120 (Feilding last week). It's actually not surprising store lamb prices have come back from the dizzy heights of late October when they were over $5/kg (or $150 a head). Three years ago they were fetching just $50," Cotton said.
"Up until last weekend much of Hawke's Bay hadn't seen rain in 30 days or so and farmers were selling stock off to cope and certainly not buying in the numbers they are usually trading in, and that obviously impacted on the markets. Hawke's Bay normally dictates the markets at this time of the year."
Cotton warned that more pressure was likely as we head into the last full week of killing at the freezing works.
"Space is at a premium as large hill country stations do their first weaning draft and early lambing farmers are taking their second drafts. Lambs have been given preference over mutton, so some ewes will get to enjoy Christmas on the farm rather than in a box heading to China. Even with space for mutton at a premium, price is holding up well for mutton at $6/kg.
"As with sheep, killing space for cattle has also tightened with some plants closing over Christmas. The amount of feed available coming into the New Year will help determine space availability and price. Wellington Anniversary in January and Waitangi Day in February will add to the space pressure.
As with sheep, killing space for cattle has also tightened with some processing plants closing over Christmas.
"In my 40 years in the game I can't remember farming being so profitable over a sustained three-year period and I'm talking about lamb, beef and interest rates. And in my 14 years as a rural real estate agent I have never seen the banking industry so difficult for farm finance, land purchases or livestock overdraft facilities.
"With high livestock prices, most trading farmers do require a good level of support for trading overdraft accounts. The ewe fairs this season will have stock selling at the $200 mark per head, store lambs will be $100-$140 a head and cattle over $1000, so it's easy to see why support from the banking industry is needed."
Cotton also warned of the impact of potential compliance driven by central government policy.
"In my seven years as regional councillor at Horizons, I have never experienced the amount of potential regulation coming from central government and aimed at the farming sector.
"Take water quality, for instance. There is a raft of regulation proposed that needs to be dealt with from 2020 onwards. So will all this in mind I will be asking Father Christmas to ask our urban cousins, the banking industry and central government to support and encourage our farming industry and its people," Cotton said.
