Affco’s recent $9/kg contract for prime lambs appears to have hyped the store market even though AgriHQ analyst Nicola Dennis says other meat companies are offering winter slaughter prices that mirror last year’s at about $7.50 to $7.80/kg.
The contract is available only in August to Affco clients who have been regular suppliers and applies only to stock processed at North Island plants.
Dennis says few North Island store lambs can be bought for less than $4 a kilo while South Island store lamb prices are identical to the same time last year at about 50% of the slaughter price of just over $7.50/kg.
She expects slaughter prices to follow a similar trajectory to last year and doubts those returns will support prices now being paid for store lambs.
Silver Fern Farms is not offering winter contracts but a spokesman says it has been telling suppliers at its recent road shows it is paying $7.50 to $8/kg for lambs that meet its carcase specifications.
These values are based on market values and SFF expects prices to start easing in mid October as seasonal supply increases.
Alliance livestock and shareholder services manager Heather Stacy says prices are stable and demand in North America and Asia is firm.
“We are focused on aligning returns from the market to procurement pricing. In the United Kingdom there is underlying uncertainty with Brexit but negotiations for our Christmas chilled programme are under way.”
A dry autumn and reports facial eczema might be extending its range appear to have affected ewe scanning rates in parts of the country.
An exceptionally dry March and April reduced scanning rates by about 10% in parts of Otago while facial eczema appears to be in new regions and at higher altitudes of the North Island.
There is no nationwide data collected on the range of facial eczema infection but Veterinary Association large animal veterinary manager Ash Keown says weekly spore counts supplied by animal health laboratories show infection rates this year are comparable to last year but lower than 2016.
Beef + Lamb NZ senior biosecurity and animal welfare adviser Will Halliday has had reports of the disease appearing in new areas earlier and later in the season than usual and at higher altitude.
That perceived increase in the disease’s range aside the challenge seems about normal.
“By and large I don’t think it has been a year any worse than any other year,” he says.
He has also had reports of lower pregnancy scanning rates and believes that could be caused by facial eczema in some North Island flocks.
