Tuesday, 15 December 2015 08:24

Productivity increases limit lamb crop fall

Written by  Pam Tipa
BLNZ's Lamb Crop 2015 report estimates 23.9 million lambs were tailed this spring – the smallest lamb crop since 1953. BLNZ's Lamb Crop 2015 report estimates 23.9 million lambs were tailed this spring – the smallest lamb crop since 1953.

White the lamb crop is the lowest since 1953, sheep farmers have become much more productive, says Beef + Lamb NZ chief economist Andrew Burtt.

He says there is still constant tension and pressure to improve efficiency and productivity.

"Farmers have responded to the signals from processors about lambs in tight specifications. That sort of thing will just continue," he adds.

BLNZ's Lamb Crop 2015 report estimates 23.9 million lambs were tailed this spring – the smallest lamb crop since 1953. Lamb export receipts for 2015-16 are estimated at $2.8 billion, down 4.2% on 2014-15.

Burtt says demand, overseas markets, currency rates and interest rates are constantly moving factors that farmers do not directly control.

"Their best focus is on the things they do have some control over, which is their productivity in getting the weights desired by their customers, the meat companies. They're doing the best they can do as efficiently as possible."

The overall focus is an increasing demand to grow animals to specifications.

He says sheep numbers fell because of key factors like drought; and dairy cows are expected to have the first noticeable downturn in a long time – driven by prices and drought. However, the decline in beef cattle numbers has slowed substantially.

"But sometimes we miss the story if we focus solely on the number of sheep or beef cattle," Burtt adds.

"We miss the productivity improvements through farm management and pasture management; all farmers know about El Nino and make and implement their plans to deal with El Nino should it eventuate.

"There are some [farmers] in Hawkes Bay who say it has rained so much at present that 'if this is El Nino bring it on'. Nevertheless they are working on the prospect of dry conditions later in the year.

"I think that responsiveness and resilience to these sorts of things is getting stronger and stronger in the industry, nevertheless there are still improvements in confidence needed."

Regarding the Silver Fern Farms investment by the Chinese company Shanghai Maling, Burtt says it shows there is enough confidence in the industry for people to invest in it.

More like this

Lost the room?

OPINION: Beef+Lamb NZ has run a roadshow to sell its new strategy.

B+LNZ gets new CEO

Beef + Lamb New Zealand (B+LNZ) has appointed Alan Thomson as its new chief executive officer.

How to achieve successful lambing

Lambing is now well advanced around much of New Zealand, including in areas where drought-like conditions are presenting real challenges for farmers, on top of a poor run of prices for their product.

Featured

New ag degrees at Massey

Changing skill demands and new job opportunities in the primary sector have prompted Massey University to create a new degree course and add a significant major into another in 2025.

The show is on!

It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee, that has ensured that Christchurch will have a show this year, says CAPA general committee president Bryce Murray.

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter