Wednesday, 20 September 2017 08:55

Lamb does have a rosy future – report

Written by  Pam Tipa
Rabobank analyst Blake Holgate. Rabobank analyst Blake Holgate.

Growing more lambs in the shoulder season is among proposals for maximising the value of New Zealand lamb in a new report from Rabobank.

Animal proteins analyst Blake Holgate says there is likely an oversupply of product during some months of the year, while supply is unable to meet demand in other months.

Farmers who are prepared to produce lambs in the shoulders of the season have an opportunity to capitalise on the increased export of higher-value chilled meat products during the off-peak times. In 2016, the average value of chilled lamb exports was $11,697/tonne versus $6096/t for frozen lamb exports.

Holgate told Rural News there is a lot of rhetoric these days about value-add. The report, released late last week, headed ‘Maximising the Value of NZ Lamb’, was produced to provide a better understanding of how to add value to lamb, what is involved and the roles different industry players have.

He says the value-add journey has started and will continue and farmers need to understand better how they can engage.

Farmers can discuss with their processor what products or strategies they have or are developing and whether they can align themselves with those products.

Whether it is current products, something on the horizon or general strategy, farmers can look at how they align their farming systems and adjust to the future. Producing more lambs in the shoulder season is just one proposal.

Firstly, farmers can start to work with processors and discuss incentives to meet the higher costs of changing systems.

“Secondly [farmers need to] understand accreditation schemes and traceability requirements; if we want to add value we need to get those nailed,” Holgate says.

“Farmers need to buy into some of those schemes, get their house in order and be proactive on that front.”

Consistency of product quality is important “to ensure our consumers around the world are getting the same eating experience every time they go into a restaurant or supermarket.

“If we want to [sell] premium product and expect people to pay a lot more for it, we don’t want them to go in there, try it, have a bad experience and not come back.

“So we must ensure our farming systems and measurements meet quality at the processing stage, or relay information up and down the chain to ensure we can move towards a more consistent product.”

More like this

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

Carrot and stick approach needed

With increasing and rising financial challenges, a well-balanced combination of carrot and stick will be needed to help dairy companies reduce greenhouse gas (GHG) emissions.

"Further rate hikes unlikely"

According to Rabobank, inflation expectations in the New Zealand economy are headed in the right direction, with interest rate relief on the cards for the second half of 2024.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter