Wednesday, 08 March 2017 14:55

Returns aren't good enough

Written by 
James Parsons. James Parsons.

There have been negativities around farmers saying the sheep sector is declining.

Farmers are noting that the sheep flock is down to 28 million and returns aren’t good enough, says BLNZ chair James Parsons.

“However, right now we are running at our five year average for lamb per kilo of carcase weight,” he says. “It is not stellar, but in terms of averages we are ticking along okay.”

Meanwhile, Parsons says he has a “shed full” of wool on his farm that he hasn’t yet sold, but wool is always up and down.

“It is a commodity: China suddenly decides to stop buying and the price falls [but] in 12 months they will be back into it and the price will be up.”

Beef has been an interesting one: the schedule for bull was about $3.30/kg five years ago and is now sitting at $5.20/kg.

“The beef prices have really come up so we are seeing a lot more interest and probably have a bit more beef production and are decreasing sheep flocks,” he adds.

“We haven’t seen a big shift to dairy in the last couple of years understandably…. Some of the environmental regulations coming in are putting a dampener on those dairy conversions.”

More like this

Autumn sub clover control sets up pasture for spring

Recent widespread autumn rain will have triggered the germination of subterranean clover seeds, and the resulting seedlings should be allowed to reach the 3–4 trifoliate leaf stage before grazing, says Beef+Lamb NZ.

Red meat rebound

The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.

The future of beef breeding

Progeny testing at Pāmu’s Kepler farm in Southland as part of Beef + Lamb New Zealand’s Informing New Zealand Beef programme is showing that the benefits of hybrid vigour could have a massive impact on the future of beef breeding.

Methane targets disappoint farmers

Beef + Lamb New Zealand (B+LNZ) has reiterated calls for New Zealand to revise its methane targets after the Government's "disappointing" announcement of its revised Nationally Determined Contribution (NDC).

Featured

Horticulture exports hit $8.4B, surge toward $10B by 2029

A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Be afraid

OPINION: Your old mate hears some of the recent uptick in farmer confidence has slipped since the political polls started…

Trust us!

OPINION: Ther'es a reason politicians rank even lower than John Campbell in the most trusted profession surveys.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter