Higher prices overseas for skins and the lower value of the New Zealand dollar have enabled some meat companies to add up to 20c/kg to their bobby calf schedules.
Others said they are paying the same as last winter and will be competitive with prevailing prices.
The range for medium calves, 13.5kg to 18kg carcaseweight, where most weights fall, is reportedly $1.85/kg to $2/kg.
Companies don’t want their actual schedule prices published.
One livestock manager said 5c-10c either way is not going to make much difference to farmers’ returns of $30 to $40 a head for four-day calves.
The biggest speculation before the slaughter season began was that Mycoplasma bovis disruption would cut back the numbers of dairy calves taken on and reared for the beef industry.
That would in turn lift the bobby calf kill numbers.
Although North Island meat processing plants are only into week two of a month of peak calf capacity they don’t expect seasonal numbers to be much higher, AgriHQ livestock analyst Rachel Agnew said.
The flip side of the bobby calf tallies is that the same numbers of calves will be reared this year for 100kg weaner sales, except in regions where M bovis has hit hardest.
“The bobby calf season has been slow getting started and the prevailing view at the Red Meat Conference among companies was that numbers will be similar to last year,” Greenlea managing director Tony Egan said.
The major markets for calf trunks are the United States and China, both of which are expected to have ongoing demand similar to last year at slightly lower prices.
“The lower NZD and the better prices for skins and some other calf products have been passed on to farmers where possible.”
Affco national livestock manager Tom Young said another 20c has been added to the schedule this year and that mainly came from the skins and the currency exchange.
It is business as usual for the calf rearers handling big numbers but some smaller rearers might have suspended operations.
Six Affco plants are processing bobbies at Moerewa, Rangiriri, Horotiu, Imlay, Malvern and Awarua.
Anzco livestock and agriculture manager Grant Bunting said the industry assumption was for higher numbers of bobby calves but it was too early to tell.
Three plants at Canterbury, Kokiri, Rakaia in the South Island and at Eltham in the North Island are processing bobbies.
The Ministry for Primary Industries has taken a long time to clarify its advice on calves from Restricted Place and Notice of Direction farms.
Silver Fern Farms said its prices were similar to last year’s schedule and it expects a repeat of the slaughter numbers though it is still early in the season.
It said market conditions are constrained as manufacturing markets have increased supplies of beef and other proteins.
“We have a better spread of sales across the markets we participate in. This will help us manage market risk and should help build demand in future years.
“The currency has helped to offset changes in the market,” it said.
SFF is processing bobbies at Waitoa, Takapau and Waitotara in the north and Pareora and Waitane in the south.
Livestock agents reported lower yardings of four-day calves but more paddock sales.
Last Tuesday only 700 calves were yarded at Frankton, Hamilton, whereas in previous years perhaps 2000 would have turned up.
Friesian bull calves made up to $250 and whiteheads to $280.
For dairy farmers M bovis precautions have been added to the new animal welfare regulations and declarations introduced last year.
Bobby calves should be clearly separated from the keeper calves, in their own pens with ramps, and everything disinfected after the pick-up truck left, farmers have been told.
MPI said trucks visiting farms pose a very low risk of spreading the disease.
“Transporting bobby calves and slinks to processing has negligible risk of spreading M bovis from infected farms to unaffected farms,” it said.
