The Country’s Jamie Mackay is joined by PGG Wrightson’s General Manager for Livestock and Rural Real Estate, Peter Newbold, to look at rural property this month with the market being worth more now than it was this time a month ago.
Newbold notes that they currently have more listings than they have ever had, and he puts that down to the quality of properties and the large numbers of enquiries. There continues to be a strong interest in dairy, and Newbold anticipates a large number of transactions in the 15 million+ bracket.
Mackay comments how the dairy industry has been “unfashionable” for the past 4 or so years, and how it has become popular again. Newbold agrees and adds that while it is a wonderful industry, it can be hard to find workers.
Mackay asks about the sheep and beef market being driven by forestry, and raises concern around the impact from carbon farmers overtaking pastoral land. Newbold adds that maybe it has gone too far but it is a critical part of New Zealand’s economy.
Horticulture is holding strong, and Newbold anticipates a few listings to come through.
The lifestyle market continues to entice new buyers. Newbold comments on the large numbers of purchasers coming from the metropolitan areas, the limited number of listings, and the trend of auctions being pulled forward due to the demand.
New Zealand’s first ever fully online bull semen sale attracted intense Trans-Tasman interest and achieved a record price recently.
PGG Wrightson Livestock National Genetics Manager Callum Stewart organised the sale, on 7 September, through New Zealand’s virtual saleyard, bidr®. He says it showed the level of demand for premium quality beef genetics.
“We offered 554 straws of semen, both Hereford and Angus, from several of the country’s foremost beef studs, who put up packages from some of their best bulls. Turnover across the sale was $41,000, with the top price of $420 paid for a straw from Braveheart of Stern, one of the premier bulls of Stern Angus, inland South Canterbury, purchased by an Australian buyer. This is a record for a straw of Angus semen sold in New Zealand.
“As the inaugural sale of its kind, we were looking to the market to gauge demand for bull semen online, receiving an emphatic positive answer. We know commercial farmers and breeders are increasingly motivated to enhance the quality of their stock, using artificial insemination to add value and advance herd genetics. Doing that with the convenience and competition of an online auction is an easy way to access suitable genetic material. This sale demonstrated that online semen sales are a viable option.
“Purchasers are making the decision: they want improved genetics, and are willing to pay, making commercial decisions worth hundreds of thousands of dollars to their businesses. In future this will become an elite sale, with even higher quality on offer,” he said.
Stern Angus stud principal James Fraser was delighted with the auction.
“Braveheart has had an outstanding career. He was born in 2007 and bred sons to $95,000 and just this year a son sold at $72,000. His genetics are sought after in Australia and New Zealand. We previously sold full sibling embryos in Australia for AU$2000 each. The Braveheart bloodline is threaded through much of our herd to this day. A small quantity of his semen remains available for the market,” he said.
At the online auction, 78 registered bidders placed 299 bids, with demand for the Angus lots slightly ahead of the Hereford semen.
Listen Now. PGG Wrightson Livestock Report on The Country 03 Aug 2021.
The Country’s Jamie Mackay is joined by PGG Wrightson’s national genetics manager, Callum Stewart, to talk about New Zealand’s livestock market.
Mackay comments how Fielding might be the nation’s capital for farming, especially since they have the biggest sale yards in the country. Stewart confirms that there will be a sale proceeding tomorrow within current government protocols.
Stewart notes that tomorrows livestock sale will adhere to strict social distancing rules, compulsory face masks, and essential people only.
Mackay queries the process for the upcoming semen sale being hosted on Bidr, 7pm on the 7th September. Stewart adds that this technology has allowed them to reach commercial clients for a reasonable cost, and it is something that they have not done in New Zealand before.
Pre Covid19 and Bidr, semen sales took place privately with clients. Stewart adds that technology has allowed them to grow this area of the market and Bidr has become a great success.
bidr® now livestreaming sales at selected saleyards, with more to follow.
After its launch in 2019 as a purely online trading platform, following the COVID lockdown last year, bidr® introduced its hybrid livestreamed product for on-farm auctions. This provided a fully integrated online bidding platform alongside traditional livestock auctions. That has continued this year with particular success in Genetics as both buyers and sellers benefit from this flexible combined method of sale.
With the introduction of livestreaming at key saleyards, on-site and online livestock trading is now set to become more available for commercial livestock. bidr® now hosts the action from Feilding Saleyards Store Cattle online, allowing users to view the regular sales every Friday, bidding remotely if they choose.
Providing the ability for online bidders to participate in more sales, at more saleyards, bidr’s technology now presents the flexibility to offer the platform at any saleyard throughout the country.
To find out more about bidr®, contact a member of the bidr® team here.
“Not seeing that big cost go out when the truck brings in the lambs is a good feeling"
Over the past five years PGG Wrightson’s Go-Stock has put 1.5 million lambs and 230,000 cattle on farms throughout New Zealand.
Go-Stock eases cashflow on farm: PGG Wrightson buys the stock and retains ownership, meaning no initial outlay for farmers, who are then free to use capital elsewhere. Farmers then graze and grow the stock before deciding, with our guidance, when and where PGG Wrightson will sell them. PGG Wrightson pays any resulting positive trading margin to the farmer, less fees and selling costs.
Arthur Pearce has 100 hectares at Templeton, just south of Christchurch, which he runs as a mixed cropping farm, including finishing lambs. He has found Go-Stock beneficial with the lambs.
“We use it as an alternative to procuring stock. Go-Stock is an easy way to do it, meaning you don’t have to look at an overdraft month by month. You fill in some simple paperwork and the next thing you know, the lambs arrive.
“Not seeing that big cost go out when the truck brings in the lambs is a good feeling. We use Go-Stock to free up capital so we can do other things. It’s an easy way to stock our property, without the worry of paying for them,” says Arthur.
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.
Defer-A-Bull helps South Otago sharemilker meet bull team cashflow challenge.
Through September and October with hybrid bidr® and on-farm sales, the yearling bull sale season is a prompt for many farmers to apply for a PGG Wrightson Defer-A-Bull purchase agreement. Defer-A-Bull is a proven winner, providing an ideal opportunity to finance a bull team with no upfront cost and no re-payments until the bulls are sold.
Some farmers have subscribed to Defer-A-Bull for ten years and longer. It offers an ideal opportunity to secure capital to fund annual bull purchases. With Defer-A-Bull farmers can invest in a bull team when they need it, without putting pressure on funds when cashflow can be tight.
Kevin Louw is a 50-50 sharemilker with 650 cows, farming in Paratai, South Otago. After a recommendation from PGG Wrightson Livestock Central Otago Dairy Representative Paul Anthony, Kevin has used Defer-A-Bull for several years, and is fully sold on it.
“As a sharemilker, running a team of bulls each year can be challenging. I’ve tried going AB exclusively, and the empty rate was much higher than I wanted, which leads to lost productivity.
“To use a full complement of bulls, with separate teams alternating night and day, ensuring they have enough rest and can do their job properly without going lame or becoming exhausted, is expensive. As a sharemilker that throws up a cashflow problem that is impossible to budget for. I need 20 bulls to maximise my in-calf cows, which requires a cash outlay of around $50,000, and there is no way I could do that.
“We looked at Defer-A-Bull as an option. With PGG Wrightson behind it, you know they will source stock from reputable buyers, which mitigates the risk of buying inadequate bulls.
“After they’ve finished, the bulls come out for two to three weeks, we freshen them up, then send them off to the works. PGG Wrightson takes their money, and you get an account for the balance. It’s never a major shock, and you end up with a far lower empty rate, which of course helps profitability.
“Defer-A-Bull allows me to follow best practice managing my bull teams. I want to do that properly: for cashflow reasons I wouldn’t be able to do it any other way.”
For more information on Defer-A-Bull talk to your local PGG Wrightson rep.