Less positive economic factors offset good weather conditions 

Mild South Island weather coupled with plenty of rain has provided good soil moisture levels, setting farmers up for a promising spring. 

During July and August, the quietest time of the year in the saleyards, small yardings of both sheep and cattle were tempered by schedule decreases over the past few weeks. 

Global economic factors have had an impact, particularly from China, where demand for red meat has softened, while increased Australian sheep meat exports are resulting in greater supply, combining to negatively influence both sides of the world market. This downturn is more noticeable for sheep than cattle.

South Island bull sales are in prospect, and likely to be similar to last year. Although the milk payout is down, how that will effect spending on service bulls is difficult to determine. As farmers still need to get their cows in calf, much price variation is unlikely, though a swing to AI is possible. Sentiment over the next six weeks will determine how well this year’s sales go.

PGG Wrightson’s Defer-A-Bull is a useful option through this period, and features in the spring plans of many South Island farmers.

 Shane Gerken, PGG Wrightson South Island Livestock Manager