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25 November 2019

Rural Real Estate Report 21 November 2019

PGG Wrightson's GM for Real Estate Peter Newbold joins The Country's Jamie Mackay to talk rural property this month.

Mackay gets into the discussion of money and where it is coming from, and questioned if there is a Mexican standoff between the banks and the farmers. It was a challenging space as sales were quiet, returns for farmers were good, and the banks have changed their rules said Newbold.

"Fair to say some of the vendors will need to look at it from a yield basis rather than a capital gains story" said Newbold.

Mackay and Newbold agreed that if farming headed back to a yield story it would benefit everyone. Newbold added that there always needed to be something for the next person.

Questions were raised around the price of dairy properties, as there was zero activity and could this be due to no one knowing where the market sits. Newbold elaborated this could be location, property size or tier related issues.

Mackay asked with more marginal dairy properties, are they in danger of being converted to beef and sheep farms. Newbold added that land use stories are moving forward particularly in provincial areas, on the condition that sheep and beef values are maintained.

Forestry is gaining interest, particularly on the East Coast of the North Island, as there is good money being invested into the land.

Sales of horticulture land have been going strong. Mackay quotes from The Real Estate Institute of New Zealand (REINZ) rural spokesman Brian Peacock who stated "while dairy and finishing properties were down considerably in terms of the number of sales, the stand out category is arable land.

Provided by The Country.

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Livestock Market Update November 2019

21 November 2019

Sheep & Beef

Shane Gerken - South Island Livestock Manager 

Finally spring has arrived in the South Island, with the last few days being fine and warm.

The store cattle market which is finally starting to generate some interest. This is thanks, in part, to some warmer weather and a visible lift in grass covers in areas that aren’t simply waiting to dry out.

Traditional beef cattle are in strong demand as finishers look at replenishing cattle for the spring. Buyers are sticking to quality and the beef cattle are clearly on their radars. 

There are still the odds and ends of the old season lambs coming out for kill but for most these are done and dusted. Farm gate prices are ranging from the $8.50 - $8.70kg in the South Island.

Colder conditions have hampered the growth rates of spring lambs which will create a gap between the old and new seasons lambs becoming available for slaughter. 

Ewes all counted have ranged from $110 – $140, with most of these sales being in the Canterbury region.

Ewe prices are making between $6.00 to $6.20kg. Numbers are very limited until weaning takes place over the next few weeks.

 

Dairy

Jamie Cunningham - National Dairy Sales Manager

We have seen another busy month out in the field with our Livestock teams and it’s been pleasing to see the positive global dairy trade trends provide encouragement for this season’s payout.

Unexpectedly strong interest is already showing in forward contracts on herds for May and June delivery. Farmers seeking quality need to be in early to secure the best. Export heifers are exiting the country for China in high numbers which may have repercussions later in the season, resulting in low stock availability, justifying early action.

Additionally, dairy beef is a big focus approaching the summer. Sales of weaners started well in the North Island, with early indications that trading levels will track last year’s sales, boosted by positive beef schedules.

I have been out and about around the country over the last month and have seen plenty of cows in the main pasture, looking really good along with a lot of supplement produced. The exceptions are the West Coast and Southland regions which have struggled with too much rain and a lack of sunlight. Let’s hope the month ahead is a good one to help kick things into gear.

Any further market related questions please feel free to contact myself or your local PGG Wrightson dairy specialist.

 

Genetics

Emma Pollitt - Livestock Genetics Rep

With bull sales behind us for another year, the genetics team have shifted their focus to ram sales in the last month. After a pleasant early spring in most regions, this year's offering of future sheep sires are in forward order with many breeders stating they are putting up the best they ever have.

There is great genetic diversity amongst breeding programmes now which allows the commercial farmer to be spoilt for choice in whichever direction they are heading.

Rapid gains have been made in many production and performance based traits. This is thanks, in part, to advances in recording, selection and technology embraced by our ram breeders. These gains at seedstock level are reflected in the ultimate profitability of using the best ram for your business, of which, the Genetics team can help you find.

Livestock Market Update November 15 2019

27 November 2019
PGG Wrightson Livestock General Manager Peter Moore joins Mark Leishman on the daily report to discuss how the livestock market is tracking as we head into Summer.

Livestock Market Update Nov 29 2019

03 December 2019
PGG Wrightson Livestock General Manager Peter Moore joins Mark Leishman on the daily report to discuss how the livestock market is tracking as we wrap up November.

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