PGW revises earnings guidance as farmer spending drops
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
A Hauraki Plains agent reports one of the main problems is the limited numbers of genuine herds.
“I recently sold an ordinary herd for $1700/head, but top herds I was selling last year for $2100/2200 are now reaching only $1900/head,” he said.
He believed that representatives of Ngai Tahu have been looking for North Island herds to stock their recent dairy conversions.
PGG Wrightson livestock manager Waikato, Dean Evans, said most herds sold in his area have been priced between $1400-$1900/head. Most stayed in the North Island and 10-12 went to the South Island.
“As always quality rules and the well-presented herds with good records made up to $2150/head.
Swap Agriculture held its annual sale of in-calf heifers and carry-over cows on April 21 at Walton near Matamata, with farm manager, Vaughan Armstrong reporting a satisfactory sale.
“Of course we would have liked more. But with 112 Friesian and Friesian cross in-calf heifers averaging $1700/head and the 92 in-calf carry over cows averaging $1750/head we were happy considering the season.”
Buyers were given free grazing until June 1.
The sale was run by PGG Wrightson with Joe Harris and Mark Begovich Livestock. – Tony Hopkinson
