Friday, March 29, 2024

New troubles hide real problem

Avatar photo
Climate and market uncertainty impacted heavily on the Temuka adult ewe fair with prices plummeting by up to $60 a head.
Reading Time: 3 minutes

With 14,000 ewes advertised and running on the back of the record prices set at the two-tooth and ewe lamb fair the previous week the annual adult ewe fair looked set to be a cracker last Wednesday.

But a lot happened in a week – coronavirus was declared a global emergency, the drought conditions in Canterbury and northern South Island were exacerbated by extreme temperatures soaring into the mid 30s and meat schedules took a dive.

As a result about 4000 ewes were late withdrawals by vendors anticipating a slump in the market so just 9300, a third of them capital stock lines being sold because of changing land use, turned up. 

“It was like a perfect storm for the industry. It certainly kicked the confidence to touch in a hurry,” Carrfields livestock agent Craig Harrison said.

“Coronavirus has had a big impact on this ewe fair today – market uncertainty, processing companies clawing back the schedules, the dry verging on drought right up the east coast, it’s the uncertainty.

“Nobody knows what’s around the corner, the market is depressed, supply is outstripping demand and farmers are being very cautious,” Harrison said.

While not discounting the market blip because of coronavirus and the weather, PGG Wrightson South Canterbury livestock manager Joe Higgins believes there’s longer-term concern for the industry.

“Coronavirus and prolonged hot dry weather have knocked some confidence but that’s short term. 

“The big bearing is the changing style of sheep farming, people farming sheep just don’t want to lamb ewes. They just want to trade lambs.

“We are talking today about the diminishing demand for breeding ewes. Store lambs were not impacted two days earlier at Monday’s store sale,” Higgins said.

“It’s a hard sell and there’s no denying prices have plummeted, up to $60 a head compared to the 2019 adult ewe fair.

“It’s very tough going and the buyers are just not here. There wouldn’t be anyone much here from north of Canterbury and there’s no North Otago buyers.

“There’s limited bidding and on some feature yardings of annual draft ewes, that have been coming here for years, one bid gets you the pen.

“A lot of ewes have barely made a premium over what they would make in the prime pens on a Monday and that’s very disappointing.”

Prices were well back right across the sale with several lines passed in.

A line of capital sock three-shear Border-Romneys topped the sale at $204, the only line to reach $200.

The top sale of the two-tooth ewe fair the previous week hit a record $355.

“It’s been a huge turnaround in just a week and best described as very tough selling and a very disappointing sale for vendors.” 

Higgins said store lambs continue to sell well, backing the trend for sheep farmers to trade, not breed lambs.

Talking up the sheep industry and referring to recent reports that lamb is becoming the first choice of meat to eat at restaurants and put on the Christmas table, the sale mood was not quite what South Canterbury sheep and beef farmer Eion McKerchar expected.

“All the income out of sheep in the past 12 months and now nobody wants breeding ewes.

“I’m surprised at the lack of interest and it’s not just the climate conditions or coronavirus, it’s people not wanting to have a breeding flock.”

McKerchar runs 2000 breeding ewes alongside a 250-cow beef herd on the family’s sheep and beef property at Cave. 

“We are looking at our long term business. The indicators for sheep are good and some of us have to keep lambing ewes for all those preferring to trade.

“At the end of the day supply and demand will keep us on the right side – I hope,” McKerchar said.

Paying one of the top prices for his Romney two-tooths last week, Hakataramea Valley sheep farmer Alan Bird has long-term confidence in sheep.

“We brought very good Romney two-tooths last week and while at record high prices the returns are there but to get the returns you do need to buy good genetics and have good-quality replacement ewes coming into the flock.”

It’s a case of reap what you sow, Bird said.

“We are happy with what we got and the industry is in good heart giving the genuine sheep breeder confidence to invest.

“If the breeders are producing high-performing stock the finishers reap that benefit too and at the end of the day sheep farming, breeding and trading is about producing what the export markets are demanding,” Bird said.

Total
0
Shares
People are also reading