Rural: Recent rain lifts lamb, cattle prices

Rain brings price rises in the livestock market and puts pressure on the meat companies looking to fill the hooks this winter. Photo/Supplied

Rain in recent weeks has signalled the start of the annual cat and mouse game between sheep and beef farmers and meat companies in the lower North Island.

The lamb schedules moved up 40 cents a kilogram to $6/kg liveweight. Store lambs that were trading for $2.60/kg are now well over $3/kg with the highest reports coming from Stortford Lodge with a line of 28kg male lambs selling for $3.46/kg .

With 26,000 lambs to test the market at Feilding on Friday the market remained strong with the average price reported for a 32kg lamb at $3.07, although this was an estimated weight as the Feilding saleyard operators will not let the scales into their yards.

Independent Wanganui-based livestock agent, David Cotton from River City Livestock, said with lambs up $15-$20 a head in under a month has certainly put pressure on the meat companies who were killing some light lambs when the store market was weak.

"It's going to be a long winter for them (meat companies) trying to fill the meat hooks," Mr Cotton said. "The reported lamb schedules last week rose 25 cents bringing them up to $5.75, but a quick phone call to your agent will tell a different story, although now it's not considered PC to do a ring about to find out how much of a difference there is between meat companies.

The price for store lambs is well in excess of this time last year," he said.

"A 32kg store lamb is up a massive $32 per head on last year, but more than the contract prices of $6.50/kg will be needed to make a reasonable trading profit this winter."

The rain has also affected the cattle market with a lift across the board, but the best lift was in the weaner prices.

Local trade cattle prices were up 25 cents to $4.60/kg, again well up on April 2013 when the schedule was $4.10/kg.

"So as my saying goes, tell me the weather I will tell you the market - up," Mr Cotton said.

"There are a substantial number of lamb and beef contracts out this year. Even the local trade has entered into this trying desperately to secure livestock for the winter months. The lamb contract prices of around $6.50 for delivery in October don't look that attractive to me this year and I've always been a fan of contracts and spreading the risk of your livestock sales. The beef contracts are around $4.85/kg for delivery in September.

"I am told perception is reality and I read with interest how well the Nait tagging system is working. This has not been my personal experience with cattle both sold and purchased through the sale yards not been recorded correctly. I'm only talking one or two cattle in a line, but if it's not 100 per cent correct why bother, especially with the cost, time and effort. I'm sure this also happens with cattle sold privately, but harder to pick up. I have also had cattle killed that were tagged onto the truck but the killing sheet coming back with a change saying that one or two were not tagged.

"It's just that the reader did not pick up the tag or the tag was damaged when being inserted into the ear. There was an interesting article in the Farmers Weekly by Pahiatua farmer Graeme Dyke about this issue," Mr Cotton said.