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Rural Lifestyle on the rise
The Country's Jamie Mackay is joined by PGG Wrightson's General Manager for Rural Real Estate Peter Newbold, to take a look at the rural property market this month.
There had been an increase in interest around rural properties. Newbold put it down to low interest rates and, from an investment perspective, property had been always been safe.
"If you buy it right then you'll get a good return ... the lifestyle is something we all enjoy."
For the first time in four to five years all sectors in rural were moving forward. In addition, traditional selling periods were changing.
The dairy industry had stalled recently, however, as Newbold pointed out, some dairy farms had sold where the vendor had provided a good price with a fair return.
"Kautuku" is a multi-purpose farming business on the doorstep of Hastings. Situated some 10 kilometres west of Hastings, this 420 hectare property has it all. The options here are endless and the current owners of thirty plus years are handing it on in great heart.
This spring’s yearling bull sale season began in early September, progressing through the country from the top of the North Island, scheduled to finish with late October sales in Southland.
PGG Wrightson Livestock National Genetics Manager Callum Stewart says general uncertainty makes the market difficult to predict.
“Many of the fundamentals for red meat are positive. Values close to where they were at the equivalent sales last year would leave all parties happy.
“We have slightly more bulls on offer this year. Breeders are emphasising affordability and quality. Of the predominantly Hereford and Angus bulls on offer, purpose-built breeding programmes favour low birth weights and rapid growth. Purchasers look for easier calving and young stock that will mature fast, providing the opportunity to sell progeny early.
“Vendors are realistic. Uncertainty has made the market volatile this year. Breeding is focused on added value: providing beef product into the industry, using good genetics to offer dairy farmers an alternative to producing bobby calves,” he said.
PGG Wrightson Livestock Genetics Representative for the Upper North Island Cam Heggie said the initial sales showed farmers are receptive to what the breeding programmes are producing.
“At the first sales in Northland, we achieved full clearances of the yearling bulls, with prices up $200 compared to last year. Our vendors are delighted. They are pursuing low birthweight programmes, and have proven they can breed bulls to do that job. Farmers recognise that and come forward on sale day to buy their yearlings,” he said.
Selected sales are combining on-site auction activity with bidr®, opening the auctions to a nationwide gallery of purchasers. Callum Stewart says the number of people using bidr® to watch or participate in the sales is growing, and the platform has strong potential around genetics.
To view current and upcoming yearling bull sales check out our Yearling Bull Sales page.
A number of cattle have come forward for sale in the last two weeks.
Although we are still a way off from a grass market, these cattle were met with decent demand and prices continued to rally. Most stock were of dairy origin. Top quality yearling dairy/beef cross steers were fetching up to $3/kg. Traditional bred 1yr steers were the most sought after. Prices ranged from $330 to $350 a kilo.
Prices for yearling heifers were holding steady a $2.80/kg for traditional bred stock and $2.60/kg for dairy-beef heifers.
Dairy-beef 2yr steers strengthened by 10c/kg to $2.80/kg. There is a strong demand for 2yr Friesian bulls with interested buyers trying to secure stock. The 1yr Friesian bulls continue to head to the North Island as well as local buyers for $2.85/kg.
South Island Livestock Manager027 495 5206
With spring calving in large parts of the country now behind us, our clients are starting to discuss the sales of dairy beef that they are rearing.
Our North Island Dairy Beef Sales start in less than a month and with the kind winter that most parts of the country have had, along with the early spring growth we anticipate the interest will be solid on these early weaners.
We have options available from paddock sales to calendared dairy beef sales at sale yards right across the country between now and Christmas, along with trying to facilitate forward contracts out as far as the autumn, where possible.
The key to successful marketing around dairy beef is talking with our Livestock reps early and putting together a plan for the marketing of your weaners.
With our service bull sales now underway it is not too late to consider using our Defer-a-bull product.
Defer-a-bull has been around for several years now and with some clients having used this product 10 years in a row its repeat users speaks of the value of this product.
With an easy application process and no upfront costs, you can purchase your service bull team without having to put early season pressure on your seasonal finance.
Whether it is two bulls or 100 bulls, talk with your local Livestock rep regarding the benefits of using Defer-a-bull to assist with your requirements for 2020.
To find out more click here.
National Dairy Sales Manager
0275 833 533
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