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

Wilmar hands over US$725m ‘court security’ in Indo graft case

Reuters reports that giant food company Wilmar Group has announced it had handed over 11.8 trillion rupiah (US$725 million) to Indonesia's Attorney General's Office as a "security deposit" in relation to a case in court about alleged misconduct in obtaining palm oil export permits.

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

Don't hold back!

OPINION: ACT MP Mark Cameron isn’t everyone’s cup of tea, but he certainly calls it how he sees it, holding…

Sorry, not sorry

OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter