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24 November 2021

Positive signs for a healthy season of dairy herd forward sales

Farmers considering offering herds for purchase need to start preparing now

Listings for forwarding sales of dairy herds for settlement on 1 May and 1 June 2022 are starting to come onto the market. Any farmer considering selling a herd should contact their livestock representative now. 


Early planning is essential. An optimal marketing plan will help secure maximum value. Herds with both autumn and spring calving cows and heifers generally come forward at this time of year. 


While it is too soon to predict how values will trend, early sales have been encouraging. A powerful Global Dairy Trade sends positive market messages throughout the sector, which we are hopeful will flow into the dairy stock market and enable vendors to capitalise.


In those circumstances, the key to optimising value is to talk to your livestock representative early, discuss the sales process in detail, and plan accordingly. When you use PGG Wrightson to sell your dairy herd on a forward contract, we will make sure we leave no stone unturned to create the best market possible. 


For more information check

Jamie Cunninghame, PGG Wrightson National Dairy Livestock Manager 


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Red meat prospects positive for South Island farmers

24 November 2021

Warmer conditions after a late spring, plus excellent export demand, drive optimism

A late start to the spring slowed grass growth in the South Island, meaning some early lambs gained less weight than farmers look for. However, with plenty of rain, the season began in earnest once temperatures rose from late October.


Coupled with what have become excellent feed conditions, the current schedule and market outlook are driving strong prices through South Island cattle sales. Premiums are on offer for well-bred traditional breeds, and demand through the whole South Island is solid.


Meanwhile, as drafting commences on early spring lambs and with a favourable schedule in prospect, farmers are looking forward to excellent returns for lamb and mutton. Back slightly due to the earlier colder conditions, lamb weights stand to catch up quickly with the better weather that has prevailed more recently.


As ever, China has a significant influence on the red meat market. Chinese demand for protein remains high, particularly relative to the continued incidence of swine flu affecting China's domestic pork production. Australian farmers rebuilding their national cattle herd and sheep flock after several dry years, retaining capital stock they would otherwise finish, underscores New Zealand's excellent short and medium-term global position. Strong demand for chilled lamb from the traditional United Kingdom and Europe markets also underpins these good prospects.

Shane Gerken, PGG Wrightson South Island Livestock Manager

North Island rebounding from slow, chilly start to spring

24 November 2021

Cattle, yearlings, weaners and lambs all selling well 

By early November, the North Island's slow, chilly start to spring had ended, temperatures were rising, and the grass was growing fast. Particularly gratifying: Hawke's Bay, in drought for the past three years, received plenty of rain at an ideal time, with the moisture appearing to have soaked in, setting up perfect ideal conditions. 


North Island cattle and yearling markets have responded well. Although a few sales have dropped slightly on comparative needs, in most instances, we are close to record prices through the saleyards, statistics that optimistic red meat schedules fully justify.


Demand for dairy beef weaners is solid, particularly for beef cross heifers and steers. At the same time, results for Friesian bulls have initially been mixed across most regions, though they should rise as spring grass growth accelerates. 


New-season lambs are starting to come to the market. Given the circa $9.50 per kilogram schedule, prices align with expectations, noting that many lambs around most regions are looking for a good dose of sun to bring on the bloom they would typically display at this point of the season.


Some covid frustration is creeping in, with those operating in lockdown level three suffering most. These conditions pose challenges for agents, saleyard staff and especially for purchasers, with some obstacles in travel to locations. Where at all possible, in those locked down areas, we are attempting to live-stream significant sales, with the uptake and results through bidr® playing a substantial part. 


Matt Langtry, PGG Wrightson North Island Livestock Manager

Go-Stock provides cashflow solution for young South Canterbury farming couple

24 November 2021

Efficient and easy to use option leaves clients free to find better uses for their capital. 


PGG Wrightson offers an easy solution for on-farm cashflow: Go-Stock. Since 2016 Go-Stock has put 1.55 million lambs and 240,000 cattle onto New Zealand farms.


For farmers operating under Go-Stock, PGG Wrightson buys the stock and retains ownership. Go-Stock farmers, therefore, save on spending cash upfront, leaving them free to find other uses for their capital. 


Under a Go-Stock agreement, and with our guidance, the farmer decides when to take the stock to market. PGG Wrightson then sells them, with any resulting positive trading margin belonging to the farmer, fewer fees and selling costs.


Rob Holt and Steph Macfarlane lease four properties totalling 1100 hectares at Silver Hill, Albury, South Canterbury, where they run approximately 9000 stock units, including breeding, finishing and store stock.


Steph explains how Go-Stock benefits their business.


"We use it to trade all our lambs and cattle. About 30 per cent of our income is from finishing, which is where we use Go-Stock to manage cash flow.


"Go-Stock is efficient and really easy to use. It helps us to make sure our money goes towards our capital livestock. Being young farmers leasing property, our capital stock is our biggest focus and our most important priority. Go-Stock is such an easy process to set up and be part of.


"We would recommend Go-Stock to anyone else starting in the industry," she says.


Go-Stock is an option for sheep, cattle and deer, while a Go-Stock Dairy offer is coming soon.

For more information about Go-Stock, speak to your PGG Wrightson livestock representative here.

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