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.
PLANNING AND flexibility are the key to succeeding despite severe weather and economic disasters, attendees at a Northland Beef and Lamb field day were told recently.
Beef and Lamb New Zealand held a resilience, risk management and flexibility field day on Philip and Julia Leaf’s sheep and beef farm 40 minutes south west of Dargaville.
AgFirst Northland consultant and key speaker Bob Thomson says recent droughts and ongoing price pressures have increased calls for this type of discussion, especially in Northland where there’s been a major drought at some point every year for four years running. To make matters worse, last year’s dry coincided with a massive price drop.
At the field day an Agresearch social science study of Northland Farmers was presented. It found most farmers were concerned about drought and storms, but falling prices were a bigger concern. Responses included comments such as: ‘Don’t talk to me about prices’ and ‘Fix up the prices if you want to do something useful.’
An option to mitigate price risk is to diversify stock classes and land uses. Farm forestry is an avenue particularly worth exploring, suggests Thomson, especially on steeper land which may not generate the same level of production as gentle or moderate terrain. A 2011-12 study of three farms in Northland found steep hill only carrying 6 stock units/ha and yielding 150kg/cwt/ha, less than half the productivity off the rest of the farms, he noted.
In contrast to that study, a 22ha section of the Leaf’s property should bring in $443,796 over 25 years, or $807/ha/year, without nearly the same input and management costs as raising cattle. However, poor access could severely limit profitability of forestry so blocks of at least 10ha close to roads are preferable.
Another way of reducing risk from price volatility is to carry a range stock types and classes, cutting the impact of a price drop in any one class. It’s another strategy the Leafs have deployed with great success, says Thomson.
The farm’s 500ha of pasture carries 580 cattle and 3083 sheep. Of the cattle, 125 are spring born bulls and 454 autumn born bulls. The shift to autumn born bulls last season was so a more animals would be finished in time for the Christmas kill with its typically better prices. Spring bulls are stocked on a cell system, complementing the whole farm grass policy, says Leaf. The range of stock classes means “there’s always something ready to go,” if drought or price movements indicate a tweak to the plans would be beneficial.
Thomson says planning is as important an element of resilience as having flexibility in the system. Making early decisions, while there are still plenty of options at what could turn out to be the start of an extreme weather event or price downturn, if often a better bet than waiting.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…
OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…