Rennie wins first beef and sheep news award

A brand new award recognising excellence in hard news reporting about any aspect of the beef and sheep industry has been won by Richard Rennie, for a portfolio of articles that appeared in the  NZ Farmers Weekly.

The award, sponsored by Beef + Lamb NZ Ltd, was added to the New Zealand Guild of Agricultural Journalist & Communicators’ annual awards, which were presented in Wellington last Friday evening.

In his articles, Rennie covered a series of issues affecting New Zealand beef and sheep farmers. One tackled the potential damage of fracking to Taranaki farmland – he discovered that not only was the practice not new, it had helped restore marginal coastal farmland into productive pastoral operations and stabilised coastal dune movement. Another covered a forced sale of Alec Campbell’s property after mortgagee action by Rabobank. It revealed the farmer’s claims about stock being within the with-holding period, after being treated with a long-acting drench, were well founded, raising justifiable concerns over food safety as a result of the actions. Transpower’s proposed pylons for a Western Bay of Plenty sheep and beef farm, and the ensuing battle, were the subject of the third item.

The supreme Rongo Award, recognising excellence in agricultural journalism, was won by Auckland-based freelance journalist, Benedict Collins, for a series of programmes on the devastation of the kiwfruit industry by PSA-V, which appeared on Country99TV.

The runner-up was Shawn McAvinue, for articles that appeared in the Southland Times (though he is now working for the Otago Daily Times). This is the first year that TBfree New Zealand has sponsored this award.

At Friday night’s awards dinner, a total of ten awards were presented, nine for journalism and one for photography. The key objectives of the awards are the encouragement and recognition of excellence in agricultural journalism.

Another new sponsor, for an award that has been around for a number years, is Ballance Agri-Nutrients, which has funded the Farm Business Writing Award. The inaugural winner of this award was Tim Cronshaw, of The Press.

The PGG Wrightson Sustainable Land Management Award focuses on local, national and global agribusiness and environmental factors impacting on the sustainability of farm businesses, and was won by Susan Murray, of Radio New Zealand’s Country Life programme

The AgResearch Science Writers Award, established to enhance standards of science writing, especially about pastoral agriculture, was won by Tim Cronshaw of The Press.

The Horticulture New Zealand Journalism Award, set up to recognise excellence in agricultural journalism focusing on New Zealand’s horticulture industry, was won this year by Tim Fulton of New Zealand Farmers Weekly.

The Rural Women of New Zealand Award, which recognises the important contribution women make (and have always made)  in the rural community, was won by Jackie Harrigan for articles which appeared in Country-Wide.

The AGMARDT Agribusiness Award, which recognises high quality information about and effective analysis of national, global and other agribusiness, was won by Hugh Stringleman, for articles which appeared in NZ Farmers Weekly.

The Federated Farmers Rural Photography Award, for a single photo that illustrates a rural event or activity was won by Taranaki Daily News photographer, Jonathan Cameron.

The Guild’s own award is designed to encourage and recognise excellence among journalists with three or less years reporting on agricultural issues, The Agricultural Journalism Encouragement Award, went to John Watson, of Country99TV.

Chuffed to be recognised by peers

Lamb processor Craig Hickson was “chuffed” when he learned he was to be awarded the 2012 Allflex Federated Farmers Agribusiness Person of the Year in July. Adding a new Welsh meat plant to his business portfolio this year too, makes it one to remember in his business journey.

“It’s very pleasing to be recognised by your peers,” admits the managing director of Progressive Meats.

The astute Hawke’s Bay businessman’s speciality has lain in seeking solutions for plant processes that meet modern demands and also for challenging convention. Over most of the last 40 years (up to 2007) he has been in operation, the straight speaking Hickson has deliberately steered away from direct involvement in exporting leaving others to concentrate on that while he has focused on the niche of contract processing product for exporters.

Recognised as one of the meat industry’s leaders, he holds a seat on the Meat Industry Association (MIA) council and represents industry on the boards of Beef+Lamb NZ Ltd and the New Zealand Meat Board and an assorted array of other directorships.

Born in Canada to Kiwi parents, the young Craig Hickson was moved to Waipukurau when he was three months and later, at age seven, to Havelock North. His schooling was completed at Hastings Boys High, with vacations spent working at the Hawke’s Bay Farmers Meat Company Whakatu works, before he progressed on a HBMC scholarship to Massey University. There, he graduated with a B Tech in food technology, specialising in the engineering side – which has stood him in good stead through several new plants and plant renovations since. Later, he added a BA in economics and marketing to his list of accomplishments.

However, at that stage, pure food technology was not for the young red-headed Hawke’s Bay lad. In 1975, he found himself a job at the Meat Producers Board as product development officer, before leaving in 1980 to develop his own business – a small lamb packing plant in Hastings, Progressive Meats, which opened with his wife in October 1981.

In order to satisfy customer demand for contract services over the years, the Hicksons were involved with a few others in the ownership, design, planning, contruction and operation of Lamb Packers Feilding Ltd and Progressive Gisborne Ltd – and also with Lean Meats Oamaru through a minority shareholding in Lean Meats Ltd.

Having sold their 50 percent share in Feilding and Gisborne to Bernard Matthews NZ Ltd (BM) in 2005, Hickson was part of a syndicate that bought 100 percent back again in 2007 – the same slaughter and processing plant in Gisborne, and slaughter plant in Feilding plus a further processing plant in Waipukurau – when BM decided to withdraw from New Zealand to concentrate on its UK operations.

New meat plant in Wales

Matching supply to demand is also the reason for the purchase in April this year of a small Welsh meat processing plant Cig Calon Cymru (pronounced kig kalon – like talon – kumru, roughly translated as ‘Meat from the heart of Wales’), at Crosshands, near Lllanelli in South Wales. The plant is principally a beef processor, with a small lamb line.

Hickson explained that they had been looking for a suitable processing opportunity in the area to supply lamb year round to British consumers – the British and New Zealand lamb production is largely complementary for chilled. This enables New Zealand lamb to be supplied during the December to May period, when Welsh lamb is in short-supply and then Welsh lamb during the June to November period, when New Zealand lamb is in shorter supply benefiting both sets of producers. It will go into the same packaging with the country of origin clearly labelled.

The name of the company will remain as is and the plant will continue to process beef, but the branding for CCC product is yet to be determined. The management team will include New Zealander Jim Goodall who has the role of general manager. According to Hickson, plant staff are pleased that the company will have a new lease of life, while the local farmers are “reserving their judgement”.

Federated Farmers here have welcomed the initiative as it sees the move is an example of the vertical integration called for in several recent reports and shows there is life in New Zealand’s traditional markets. However, it is not novel, maintains Hickson pointing to Silver Fern Farms’ previous ownership of Brooks of Norwich, which enabled it to process frozen cuts to retailers’ exacting specification in-market, and other New Zealand companies, such as Alliance, Affco and Anzco, which have had in-market representation for many years and, in some instances, association with local processors.

He’s pleased there’s a ‘family’ connection too. The Hicksons own a 1,500ha farm in Hawke’s Bay and the farm manager’s wife, Denise, is Welsh, hailing from St Clairs which is near where the new plant is situated.

Slow product development

Hickson has observed very slow progress of new meat product development in terms of ready-to-eat products over the past four decades since his graduation.

“The major development area has been in the form of natural cuts and portion-size,” he says.

One fundamental reason he gives for the slow development of lamb ready meals is that lamb is a relatively high priced meat as a competing ingredient. Another is the fact that the nature of lamb fat means that it solidifies at a higher temperature than beef or pork making it tricky to work with. It is best served hot or cold, not warm.

One famous product victim of the rising price of lamb was the Bernard Matthews lamb roast, a frozen product that did very well in Britain. The concept was based on the company’s technology and marketing machinery for its famous turkey roast and was so successful it led to a plant being built here in Waipukurau to manufacture the lamb version.

The product did very well until the price of lamb increased beyond what this market segment would support, he explained, and  volumes diminished to extinction. By then, BM had developed lines in chilled and frozen portion-controlled and weight-ranged lamb products for its range.

The new McDonald’s lamb burger, which has been trumpeted about recently, is one of only two examples of a commercial lamb ‘fast food’ item. The other being a doner kebab made from lamb flaps.

Contribution to processes

Hickson believes his most valuable contribution to industry has been to plant processes. Progressive Meats was at the forefront of changes to shiftwork, which though it had already been in place in the ‘follow on departments’ in plants, it was not utilised in slaughter and boning rooms. He gained union agreement in 1986, following a five week strike, just over a year before implementation in 1988.

“Shiftwork enabled small plants to be competitive, through the improved utilisation of capital,” he says.

It was its work on relationships with farmers that enabled Progressive to be the first company in 1987 to offer forward commitment arrangements for lamb supply. “At the time, other industry participants thought forward commitments were not viable and would fail,” Hickson said. But they didn’t.

Progressive was also one of the first companies to move away from the Meat Board’s grading system, which had been designed for carcase specifications, and adapt it for its own customers’ specifications for cuts.

“We talked to our farmers and encouraged them through payments to produce lambs to specification.”

After legislation changed to ban smoking in the workplace, he embarked on a lengthy court fight to establish whether a purpose-built, negatively-pressured smoking room next to the cafeteria at Progressive’s Hastings plant was outside the ‘workplace’. The challenge was lost, but had a silver lining.

“The legal wording was ambiguous and I thought, had the room been deemed not  a workplace workers would not need to change clothes to go outside for a smoke, saving time, and their smoke wouldn’t disrupt other non-smoking employees.”

In the end, the court decided the room was ‘a workplace’ and workers did need to smoke outside the building. As Hickson himself is not a smoker, in fact he says he is “vitriocally opposed”, his support surprised his employees.

“Industrial relations have never been so good as just after that court decision,” he says, adding that the union financially contributed towards the defence of the case.

Looking to the future

Looking to the future, he commented that the Red Meat Sector Strategy (RMSS) is essentially a collation and synthesis of the views of industry participants.

“It didn’t deliver anything new but it is in a coherent form and advocates the development of future business along the lines of what, in many cases, is already going on,” he says.

However, ‘competition to buy’, tends to restrict the rate of progress to that of other competing companies in the field. While there is a high degree of consensus when interviewing participants one-on-one, it is a different matter when actions are observed in the cold commercial, competitive reality, he believes.

He sees the major challenge for the industry is for pastoral sheep, beef and deer farming to be a competitive land use option (at the margin) compared  to dairying, forestry, viticulture and horticulture, among other uses.

“In 40 years, I’ve seen a dramatic change in the Hawke’s Bay Heretaunga plains, which was once prime finishing land for livestock and is now covered in apples, crops grapes, and other viticulture.”

Lifting prices is an obvious target, but is constrained by the fact that lamb is already a relatively high priced meat, he believes.

“Reduction in wastage getting the product to consumers is another target as is endeavouring to negotiate a larger share of what the consumer pays with supermarkets and food service people generally taking between 30 to 50 percent of what the consumer pays.”

“Sheep are a dual product animal and we neglect wool at our peril,” he says. ”We need to be actively seeking new applications to lift demand and hence returns, particularly for the mid-micron and strong wool,that are traditionally used in carpet making. Wool hasn’t kept pace with lambing percentage increases, or inflation and if we could arrest the decline, and reverse the trend, sheep farming will be more profitable and grow.”

During his spare time, hobbies include managing his 60 hectare farm around he and his wife’s home in Haumoana, where he keeps deer near to the house, “nice to look at and easy to keep.” He has a love of classic cars and still owns the first one he bought when he was 19, a 1954 MG TF. He plays tennis and cricket and enjoys sailing on Lake Taupo.

When asked what was his most proud moment over his career to date, Hickson paused to reflect and said he had difficulty picking one moment as they blend into each other.

“I’ve never felt as though I’ve climbed a mountain, I’ve always been on a journey.”

+++

Craig Hickson

  • 1970 to 1973 – B Tech (Food), Massey University.
  • 1973 – Management trainee at Hawke’s Bay Farmers Meat Company, Whakatu.
  • 1975 – Joined Meat Producers Board staff as product development officer. Completed BA in Economics and Marketing Victoria University.
  • 1981 – Hicksons start small meat packing house Progressive Meats.
  • 1982 – Designs , builds and commissions small venison plant alongside Progressive Meats for ‘start up’ local farmer company, East Coast Venison.
  • 1987 – Plan and design venison plant in Feilding for East Coast Venison.
  • 1987 – Design, build and commision lamb slaughter at Progressive Hastings.
  • 1990 – Takes a minority interest in Lean Meats Ltd.
  • 1993 – Takes a minority interest in Te Kuiti Meats Ltd.
  • 1994 – Buys venison plant in Hastings and, with partner John Signal, the venison plant in Feilding from Venison New Zealand (formerly East Coast Venison).
  • 1995 – Builds Lamb Packers Feilding Ltd.
  • 1998 – Builds Progressive Gisborne Ltd.
  • 1999 – Builds replacement slaughter plant at Hastings (original only 13 years old).
  • 2003 – A principal in setting up Progressive Leathers Ltd at Whakatu.
  • 2005 – Sells Feilding and Gisborne Lamb interests to Bernard Matthews.
  • 2006 – Takes a majority interest in Te Kuiti Meats Ltd.
  • 2007 – Syndicate, including Hickson, purchases Bernard Matthews NZ Ltd’s lamb-processing and exporting operations in New Zealand and renames it Ovation New Zealand Ltd (plants at Gisborne, Waipukurau and Feilding).
  • 2012 – Allflex Federated Farmers Agribusiness Person of the Year.
  • 2012 – Hicksons purchase Welsh meat processor Cig Calon Cymru.

Current directorships: Progressive Meats Ltd, Ovation New Zealand Ltd, Lean Meats Ltd,Te Kuiti Meats Ltd, Progressive Leathers Ltd, MIA Council, Beef + Lamb NZ Ltd, Meat Board Ltd, Ovita Ltd. The Hicksons also farm sheep, beef and venison on 1,500 hectares in the Maraetotara/Elsthorpe district in East Coast Hawke’s Bay.

An abridged version of this article appeared in Food New Zealand magazine (October/November 2012).

 

Global meat prices to surge

Global meat prices could face a surge next year, bringing mixed blessings for New Zealand’s meat exporters and producers, and potentially bad news for consumers around the world.

The main concern is the severe drought in the US – the worst for half a century – which has caused US wheat, corn and soyabean crops to fail. At the same time, adverse weather conditions are also said to be affecting grain harvests in Russia, Ukraine and Kazakhstan. Responding to the shortages, grain prices have surged.

This is good news for New Zealand’s arable farmers – recent figures released by the Ministry of Primary Industries shows that arable farm profit has risen by 136 percent on the previous poor season and forward contract prices for wheat and barley have been going up in recent months because of the US drought.

However, the higher grain prices are impacting on feed prices and will, ultimately, force up downstream prices of foods dependent on grain, including grain-fed meats, in particular beef, poultry and pork. This is the bad news for consumers around the world, with huge numbers potentially finding some foods out of their reach financially, and causing concern for governments and non-governmental organisations (NGOs).

Speaking at the Red Meat Sector Conference in July, GIRA’s Richard Brown had pointed to the fact that global feed prices were at that point already trending higher “with almost the opposite weather conditions to 2011 in the Northern Hemisphere”. He said that this was leading to producer caution around the world.

Now, as supplies dwindle further, US farmers are killing off stock they cannot feed in drought ravaged areas – according to the United States Department of Agriculture (USDA)’s US Drought Monitor, 63 percent of the nation’s hay acreage and 72 percent of the cattle acreage is in areas experiencing drought.

US beef is being bought, frozen and stored for later use. meatpoultry.com reports that the US Defense Logistics Agency (DLA) is procuring US$100 million worth of supplies of meat poultry and fish, to provide drought relief for the US agriculture industry. These supplies will be stored and distributed to American troops around the world, including Afghanistan.

B+LNZ Ltd chairman Mike Petersen reports that US corn yields are being revised down daily and, while there is good confidence in the future of beef, returns generally are going to be dampened in the short-term.

“Reports are predicting an increased flow of US beef on the markets through November and December as a result, but for prices to increase strongly by January with dwindling supplies and the effects of sharply increased grain prices for feedlots,” he says.

Grass-fed beef will not face higher grain input costs

The good news for New Zealand meat exporters is that, with this country’s grass-fed production system, the sector will not face these higher grain input costs, says Meat Industry Association (MIA) chief executive Tim Ritchie.

“All other things being equal, the predicted – grain induced – rising tide of prices later this year should benefit New Zealand at least in the short-term.”

Of more concern to Ritchie and meat exporters are the structural changes to the global meat system, as in recent years China has turned to become a net importer of grain, as opposed to a net exporter.

Ultimately though, it’s New Zealand meat consumers in markets overseas, such as those facing economic pressure in Europe and where demand is expanding such as in Asia, who will make or break the fortunes of the industry.

“It all comes down to the person on the street being more careful with their discretionary dollar,” he says. That, in turn, reinforces the need for the meat industry to continue to develop market-driven products that fit with the needs of the targeted consumer.

“The ‘new norm’ for meat price prediction is ‘volatility’, which makes short-term predictions of price and demand dangerous,” says Ritchie.

“However, the long-term forecast is for meat demand to grow, particularly in Asia.”

Grass fed NZ beef a hit at music festival

Grass-fed New Zealand beef struck a chord with the crowds at one of Japan’s largest dance and music festivals, Super Yosakoi, held in Tokyo on the weekend of 25 and 26 August.

Beef + Lamb New Zealand (B+LNZ Ltd) was at the festival for the second year in a row, as part of its programme of activities to boost a taste for grass-fed New Zealand beef among Japanese consumers.

Organisers estimate that around 800,000 visitors took part in this year’s festival. Over the course of the two days, nearly 700 kilograms of grass-fed beef was served off the B+LNZ stand, which equated to more than 4,000 servings. To enable people to appreciate its true flavour, the beef was cooked simply in oil and seasoned only with salt and pepper.

A wide range of foodstuffs was on offer, but there was little doubt New Zealand beef was the most popular with festival-goers. While sampling on the Saturday was steady throughout the day, on the Sunday, a queue formed as soon as the first plate of piping hot beef was served at 10am and did not ease until the grills were turned off at 5.30pm.

The overwhelming on-the-spot response from people eating the beef was how juicy, tender and tasty it was, says B+LNZ market manager for Japan John Hundleby, adding that many were trying grass-fed beef for the first time and were not certain what to expect.

“However, once they put the beef in their mouths and tasted it, their delighted expressions conveyed very clearly their reaction.”

Others remembered sampling the beef at the festival in 2011 and actively sought out the B+LNZ stand again this year so they could enjoy the beef’s taste one more time.

Commenting on Beef + Lamb New Zealand’s participation in the festival, Hundleby said: “As was the case in 2011, Super Yosakoi provided us with an opportunity to put delicious, healthy and nutritious New Zealand grass-fed beef directly in front of consumers not only from Tokyo but from surrounding cities and prefectures. The highly positive response was gratifying, as was their interest in finding out more about the beef. In particular, the healthiness, nutritional merits and safety of the grass-fed beef seemed to strike a chord.”

Peter Fitz-Herbert is Canada-bound

Hunterville farmer, Peter Fitz-Herbert is the winner of a Beef + Lamb NZ Ltd agricultural scholarship that will take him to the Five Nations Beef Alliance and Young Ranchers Programme, being held in British Columbia in Canada next month.

The stock-manager on the Fitz-Herbert family farm will accompany B+LNZ Ltd Northern North Island director James Parsons to the Five Nations Beef Alliance. The Alliance is made up of producer organisations from Australia, Canada, Mexico, New Zealand and the US and meets annually to discuss global issues and opportunities for the beef sector.

The Young Ranchers programme will provide Fitz-Herbert with an opportunity to meet other young beef producers and to build an understanding of global beef issues, share their experience and develop networks. There will also be the opportunity to observe how producer representative organisations can collaborate for the benefit of all beef producers worldwide.

Fitz-Herbert manages 2,400 Romney ewes and 220 breeding cattle on the 600 hectare farm which is spread over four separate, mainly hill country farms. Off-farm he is involved with New Zealand Young Farmers, he has been a regional finalist in the National Bank Young Farmer contest and two years running has competed in the Speight’s Coast to Coast race.

Try lamb, says joint promotional group

A joint promotional push is getting United States consumers to try lamb.

Project partners involved with the Tri-Lamb Group, which has a goal to get more Americans eating lamb, are meeting with two Beef + Lamb New Zealand (B+LNZ Ltd) farmer directors.

Central South Island director, Anne Munro and Southern South Island director, Leon Black are in Idaho, representing New Zealand sheep farmers alongside their fellow Tri- Lamb Group representatives from Australia and the United States.

B+LNZ Ltd chief executive Dr Scott Champion says the collaborative promotion by the three sheep producing nations is built around the understanding that the profitability and sustainability of the lamb market in the US is important for farmers in all three countries.

“If more Americans are eating lamb, then each country stands to gain from the opportunities that increased consumption will provide.

“The programme includes online food and nutrition blogs that share lamb recipes and podcasts showing how to build simple and healthy lamb meals for the family. They’re tracking a lot of interest.

“This week the Group reviewed last year’s programme and considered continuing support for the initiative, called ‘Making Lamb Famous in the United States’.”

For the year ended 30 June, the United States was New Zealand’s third largest sheepmeat market by value (NZ$256 million), behind the United Kingdom (NZ$534 million) and Germany ($NZ275 million) and ahead of China (NZ$247 million).

View Lean on Lamb online food blog.

 

Sheep scanning recognised as revolutionary tool

A revolutionary tool for reproductive management of sheep in New Zealand, which has contributed to the country’s improved meat production over the past two decades, has been recognised in the inaugural Sheep Industry Awards, alongside the top flocks and sires for genetic merit.

About 200 people attended an event in Invercargill earlier this month to celebrate sheep farming excellence and to witness the presentation of nine awards covering genetics, production and business innovation. Results of the genetics-related awards were calculated based on breeders’ performance in SIL-ACE (Advanced Central Evaluation) – the large-scale, across flock and breed genetic evaluation of more than 280 ram breeding flocks.

The Silver Fern Farms award for sheep industry innovation went to Rowan Farmer, who was responsible for introducing and promoting sheep pregnancy and eye-muscle scanning technology to New Zealand.

Farmer set up Stockscan in 1991. The primary aim was to scan sheep for eye muscle area, but Farmer’s experience with quarantined sheep at Invermay gave him an insight into the management benefits of pregnancy scanning. Since then, the practice has expanded to include the identification of twins and triplets. Scanning has revolutionised the reproductive management of sheep throughout New Zealand.

In addition, the country’s top performing breeders of meat yielding sheep were honoured. Joseph and Judy Barker’s terminal sire flock ‘The Burn’ Texel stud in Mid-Canterbury rated highest for genetic merit across the SIL-ACE evaluation, The dual purpose (ewe breed) flock rated highest for genetic merit was ‘MNCC’, Edward Dinger’s Coopworth stud in the Waikato. The same flock also won the Alliance High Performance Flock award.

B+LNZ geneticist Mark Young says the process of identifying the top-performing flocks involved analysing the top 25-50 percent of rams for each specified set of traits, before then adjusting the results to account for variatons in flock size.

“This exercise also identified highly-rated sires that were making a big impact in industry. The B+LNZ Super Sires are rated in the top 10 percent for genetic merit in indexes of merit across key traits. They are also rams which have been used a lot, so have the most progeny,” says Young.

The B+LNZ Ltd Award for an individual or business making a significant contribution to the New Zealand sheep industry went to Dr Jock Allison ONZM. Two of the highlights of his career, from the sheep industry viewpoint, have been his work with the Booroola Merino which led to the discovery of a major gene fecundity gene and for importing the East Friesian sheep to this country.

The idea to hold an awards ceremony was initiated by B+LNZ Farmer Council Member and ram breeder Russell Welsh. Welsh says the dairy industry’s track record of celebrating success promoted him to suggest the awards ceremony. “It highlights best practice and,by default, that lifts all farmers.

B+LNZ Ltd chairman Mike Petersen says it is great to see farmers driving an initiative which celebrates the sheep industry, while also highlight the immense value of SIL’s database to the sector.

Other award winners on the night were:

  • AgITO Business Farm Trainer of the Year –Smedley Station and Cadet Training Farm.
  • Dual Purpose plus Worm FEC Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + Parasite Resistance) – Nithdale Romney flock, owned by A Tripp of Gore.
  • Dual Purpose plus Facial Eczema Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + FE Tolerance) – ARDG Romney Flock, R & G Alexander of Tirau.
  • Beef + Lamb New Zealand Super Sires – in addition, top sires were also picked out in six categories: terminal; dual purpose*; dual purpose high performance*; dual purpose plus meat yield*; dual purpose plus worm FED; and dual purpose plus facial ezcema tolerance. A Coopworth Ram owned by Steve Wyn-Harris of Waipukerau won three of those spots (marked *), really making it the Super Sire.

For more information see www.beeflambnz.com.

 

Market will cope with extra lambs

The market should be able to cope with the expected one million more lambs this season, suggests meat industry commentator Allan Barber.

Responding to recently released figures from B+LNZ Ltd’s Economic Service Barber points out that last year’s 4.4 percent reduction led sheep numbers to an all time low and that this season saw a bounceback of 2.6 percent, largely from an increase in ewe hoggets.

“Providing adverse weather doesn’t cause larger than anticipated lamb losses, there is every reason to expect one million more lambs on the ground this season,” he suggests, adding that this will prompt the question as to whether the markets can absorb the extra lambs, given the flat state of most overseas economies and the significant amount of inventory clogging up the pipeline.

“Past experience suggests that the pipeline will free up, so buyers will hopefully start to place orders again in the not too distant future. In addition, the growth last season meant that farmers held back stock and continued to put weight on. At the same time, meat exporters failed to give the right market signals soon enough, because they had to keep prices high to secure throughput,” explains Barber.

“Assuming the law of climatic averages reasserts itself, the coming season will return to more normal conditions. Therefore, the conflicting messages of procurement and market price will not be so far out of kilter again and supply and demand will be more complementary.

“If not, we will have to pray for an outbreak of rational behaviour from producers and processors!”

Barber notes that the changing nature of land use in New Zealand can be seen from the fact that the North Island is now home to more sheep than the South Island for the first time in living memory. At the same time, the South Island, assisted by irrigation, now has 35 percent of the country’s dairy cows, “a proportion which was inconceivable 15 years ago,” he says.