TL;DR: New Zealand’s calf market sees increased sales despite dry conditions, with early sales due to feed shortages and financial pressures. North Island buyers support the market, helping mitigate impacts on South Island breeders facing climatic challenges.
Seasonal Movements
As spring progresses, calves are born, signalling the start of seasonal trade movements. Initially, dry summer forecasts seemed unlikely, but the abundance of feed hinted at upcoming challenges.
Early Sales
On February 9th, the first calves from Seddon were transported north to Feilding’s sale yards. This marked the beginning of a series of uncalendered sales across the South Island, intended to manage the surplus livestock efficiently.
Market Surprises
Despite early sales pulling forward some numbers, total sales did not diminish. Joe Higgins, from PGG Wrightson, noted that this trend continued due to persistent dry conditions.
Impact of Dry Weather
Many farmers, anticipating a tough winter, chose to sell calves earlier than usual. “There seemed to be more heifers sold,” Higgins commented, attributing this to insufficient feed to sustain them through winter. Financial pressures also nudged farmers towards these early sales to generate cash flow.
Sales Overview
In notable auction yards like Coalgate, Canterbury Park, and Temuka, calf sales are expected to surpass last year’s figures significantly. Projections suggest a tally of approximately 18,500 calves, 4,000 more than the previous year.
The Resilience of Beef Cows
Despite the trying conditions, beef cows have proficiently sustained their calves. Though there was a drop in average weights at the auctions, such variations are normal depending on yearly conditions. “We can’t expect weights to keep rising every year,” Higgins remarked, observing weight trends among Angus steers and heifers.
Economic Impacts
The influx of calves in a challenging season has put pressure on market returns. Prices for Angus steer calves averaged around $813, a decrease from the previous year. Heifers also saw a significant drop in returns, highlighting the effects of increased supply on market prices.
Buyer Dynamics
Demand dynamics have shifted, with modest purchasing activity noted from Southland. North Island buyers, however, have been particularly active, attracted by the disparity in feed and moisture levels between the islands. Their presence at sales like the Fairlie Basin auction underscores their significant role in supporting the market this season.
The current calf sales season reflects a complex interplay of climatic challenges and market dynamics. The resilience of local farmers and strategic buying from regions less affected by dry conditions are pivotal in navigating through these times. Vendors and agents are particularly thankful for the support from North Island buyers, which has been crucial in mitigating the impact of tough conditions on South Island beef breeders.
