Lockdown has hit at a pivotal time for lamb traders poised to reap record high prices ahead of spring.
Farm gate prices in the South Island cracked $9 a kilogram last week, with industry optimism predicting further firming heading into spring.
While the reliance on sale yard prime sales, prompted by a shortage of lambs and fierce procurement competition, is largely responsible for the soaring prices, lockdown Level 4 has not dampened industry enthusiasm.
Despite the lockdown shutting down all sale yards across the country, lamb trading is as busy as ever.
Livestock agents are reporting buoyant paddock sales, as farmers and traders chase the top dollar.
“We have never had $200 for fat lambs before, so we have to take it while we can,” Mid Canterbury cropping farmer Colin Maw said.
Finishing lambs are an integral part of the Maw family’s Oakdene cropping operation near Methven, and this season is looking to be a good one for lambs to bolster the balance sheet.
“The wet winter has been slow for the lambs, but mild weather through August has seen good growth in feed – and lambs – and it’s timely now from the cropping aspect of our farming business to start moving lambs on,” he said.
“At $9 we will be offloading as soon as lambs are ready and as we are able, dependent on (processing) space.”
South Canterbury Federated Farmers president Greg Anderson says times are “certainly exciting”.
The message from the processors is if you have got lambs to go, get them in to avoid the backlog into spring, especially with the uncertainty of covid.
“There’s certainly demand there, the processors want them, most $9 contracts are up to 25kg (CW) – the yards are closed, but agents can come and buy on-farm,” Anderson said.
“It’s looking like if we can get them to the works at good weights we will be rewarded for our hard work, so I’ll be getting what I can in sooner rather than later.”
PGG Wrightson Mid Canterbury livestock agent John Farrell says while numbers are starting to come off cropping farms now, the prime kill is still dictated by the bobby calf kill.
“But the outlook is pretty positive and farmers are responding,” Farrell said.
Many paid bigger money for their store lambs in the autumn, but the current schedule pricing at $9 is consistent and comparative.
“So long as the market holds up and we can get stock away without too much more disruption then, it’s as good as we have seen it really,” he said.
Hawke’s Bay-East Coast-based Redshaw Livestock manager Dean Freeman says lockdown has been about getting on and finding buyers for stock that needs to be moved.
Unlike the South Island, feed is in short supply following two years of dry weather.
But he says pricing is high and despite some nervousness, normal paddock sales of both store stock and prime lambs is continuing.
“There are buyers out there that can take finished lambs as well and amidst the uncertainty of covid, and the wait for rain, we just need to keep up to date with stock that needs to move,” Freeman said.
AgriHQ analyst Mel Croad says slaughter prices have not seen any negativity because of lockdown.
While there was some processing disruption as meat companies returned to Level 4 processing protocols, it was minimal.
She says initial findings from New Zealand exporters show no negative views have been formed regarding exports and covid in the community.
“If anything, markets were more concerned that a slowdown in production could tighten up the immediate supply of lamb into key markets,” Croad said.
“Regardless, the flow of lambs into processing plants has been much slower than normal well before covid returned.”
