Thursday, April 25, 2024

More of the same, please

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It is not a positive feeling when among farmers of any ilk other than deer farmers. Their day in the sun is well-deserved, but while in the sun are they also securing their future? It certainly seems the dairy and sheep industries haven’t taken stock in favourable times to set the platform for the future. While the dairy industry probably has more up its sleeve than we are being exposed to, in the meantime there is huge pressure on most farms to just survive until that light at the end of the tunnel becomes visible. It would be nice to have the same feeling for sheep, but that light seems to have not even been identified, let alone lit. Most beef farmers are benefiting from a market demand that has been created not by the type of product that comes from their farms but by multiple distortions in the international market that have resulted in high demand. Perhaps some of the free-trade deals are having an effect in this regard, which is a managed outcome rather than just chance.
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So in this turmoil the message to sweat over only what you can influence is a rather simplistic mantra in some ways. At a recent discussion group day when the focus went on to lifting profitability it acted as a trigger for vigorous discussion about the state of the meat industry.

The debate reinforced the message of producing heavy lambs and prime stock at the right time and it generated some lateral thinking as to what groups could do to access better markets. Wishful thinking, perhaps, but it certainly sparked more positive discussion.

To be aware of what is happening beyond the farmgate and be able to share in wider conversation the state of the industry may not influence an outcome but it does help if the situation can be shared with others.

Returning to inside the farmgate, the best practice packages are well-described for most of what we want to achieve. As stated before, New Zealand farmers are extremely well-served in having access to those packages to achieve better outcomes.

What I find a big obstacle is in knowing which parts of those best practice messages are capable of making the biggest difference. Applying all the information in Beef + Lamb NZ’s Make Every Mating Count book for achieving a good lambing percentage is impossible.

While it is a bible of all that matters, it contains just five key points that will influence 90% of the result. The same applies to all best practice packages. In an effort to be complete, the key messages often get buried.

It is about making more from what we have. Be prepared you scanners of ewes and cows to slow down and add more value.

We have been harping on about these best practices for a long time and there has been a measurable lift in farm productivity, but I’m frustrated that we seem to be just tidying up the edges.

Lifting lambing percentage by 5% or the in-calf rate by 5% can be an outcome of applying best practice but is that enough? We really need a game-changer that can make a big difference to the profitability of hill-country farms.

That same discussion group was challenged with what such a game-changer might look like. It fell into three sections – adding value to the product sold, using tools such as Farmax or Farm IQ and farm policies.

Not surprisingly there was no one action that was going to deliver a whole lot more, other than manuka honey of course. But there were several that could add extra and added together make-up a significant lift.

Adding value to products is a hard one but there are lamb and beef markets that offer a premium based on a product spec being met. That spec varies from timing, location and carcase traits and the premiums are not large but they are real.

The appetite for using more tools to help lift farm productivity in the group was not great.

This is a lost opportunity in my opinion but the pathway to increased profit is hard to directly demonstrate – unlike adding 50 cents a kilogram to a schedule price – hence the hesitation. Once on to policies the ideas flowed. Sheep versus cattle, crops versus lower costs, bulls versus steers and more. 

No one policy was going to make a huge difference, but what really appealed to me was intensification. This can range from more tightly managed lambings and calvings through to setting up high-quality forage grazing areas.

It is about making more from what we have. Be prepared, you scanners of ewes and cows to slow down and add more value.

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