Softening lamb market and dairy payout influencing market sentiment

During the calving and lambing seasons trade in livestock generally enters a hiatus period.

Factors facing farmers and the sector as a whole include a softening lamb market, largely due to China’s market forces, with a similar story playing out around the dairy payout.

While beef’s traditional peak has not occurred this year, this market remains strong and store prices on cattle are solid, particularly for well-bred cattle that are eligible for processor programmes.

Although returns align with year on year averages, farm gate costs do not and are approaching levels that undermine budgets.

Looking ahead to the feeder calf sales season, prices are consistent with previous years, and are particularly solid for early white face calves. Values for Friesian bulls largely depend on type and quality, as usual at the start of the season.

Farmers in the East Coast and Hawkes Bay regions continue to face infrastructure and transport logistics difficulties as a result of Cyclone Gabrielle and subsequent poor winter weather, and along with their colleagues in the rest of the North Island, are looking forward to a more generous spring season. 

Matt Langtry, PGG Wrightson North Island Livestock Manager