Agsafe Weekly Report

 

Finance:  The NZ dollar was steady against the main trading currencies. Western world inflation remains very high with some reports suggesting the UK inflation may hit 17%. Rural sector inflation in NZ is higher than the official recorded rates.

Wool:  Wool prices remain in the doldrums.

Beef, Sheep & Venison schedules: The meat schedules are mostly steady to firmer for the coming week with some minor intercompany adjustments.  High calf rearing costs will see a shortage of beef calves reared this year!!!

Dairy Prices:  The g/DT dropped 5% continuing the downward trend.  WMP down 6.1%, SMP down 5.3% and butter was down 6.1%.  The offering volumes were up on recent sales.  There is a change coming to the g/DT that will see large volumes of WMP placed on an annualized auction.  This may have had an effect on the last auction as demand is still strong as prices eased.

 

The rearing of surplus calves for the beef industry is taking a hit as rearing costs have sky-rocketed.  Milk powder, meals costs and wages have escalated so the price received for the calf has been pushed down.  Margins will be squeezed with the true effect not realised until the weaner sales in November.  Large scale rearing businesses are being very cautious and only buy the best!!