Agsafe Weekly Rural Report

Finance: The NZ exchange rates were mostly steady to slightly firmer over the week. Pundits are predicting a further strengthening of the NZ dollar over coming months. Brent Crude is moving around below the $US70/barrel - currently $US66.56.

Wool: Wool prices are at an unsustainable level.

Beef, Sheep & Venison schedules: The meat schedules are up as spring comes along. Lamb and venison have now cracked the $10/kg barrier and beef schedules are continuing to trend upwards. The Beef & Lamb report is out – see comments below.

Dairy Prices. The main dairy commodities are trending down with an indication at the “Pulse Auction” that there is a further easing in the WMP prices. The g/DT this week will be of interest, but it is important to also compare the volumes offered. Supply & demand.

Grazing rotations should be planned to maximize the use of paddocks that will be used for cropping. Ensure the staff get a break between calving and mating and the early harvests of surplus feed. Fatigue often leads to accidents on farms.

You can hear us live on the radio on Monday morning at 7.35 am with Brian Kelly on Country Sport Breakfast – Radio NZ Gold AM. 792 AM in the Waikato & 1332 AM in Auckland.

Jim’s Weekly Rant:

The red meat industry is on a high where the international demand is exceeding the international supply and the USA tariffs are further distorting the trade. Even the demand for sheep meat is strong. New Zealand does have some real problems with the new USA tariff on meat as Australia only pays 10% compared with our 15% and Mexico and Canada have a zero tariff as part of a long standing free-trade arrangement on beef meat, however Brazil’s tariff on red meat to the USA is now 76.4% shutting them out of the USA market. Canada and Brazil are both reducing production as they suffer from droughts. There are live export bans from Mexico to the USA due to a Screw-Worm outbreak in Mexico and that will slow the recovery of the USA herd which is at a 74-year low. All the stars seem to be aligned if the New Zealand farmers were able to capitalize on the situations. In New Zealand there has been additional issues that have reduced our potential to meet the demands as farmland has been removed from livestock farming to plant trees for Carbon Credits. The ewe flock is declining and is down 1.9% on the previous year and lamb production is down 0.6%. These figure might not sound like much but when translated into returns the red meat industry has forgone $1.9-billion of returns over the last 7-years while the Carbon Credits have replace it with only $218-million of income. The loss of land to Carbon Farming up to 2050 is likely to cost the red meat industry around $36-billion in lost revenue that will affect the rural communities. The demand for red meats is increasing in the USA, Europe and the UK while the demand for sheep meat from China has also increased. The positive returns get spent in the communities with an estimated $15.5-million spent daily supporting the growth and recovery of the New Zealand economy. The $15.5-million buys fertiliser, general goods and services, new plant and equipment and it keeps going around. Compare the red meat expenditure with the Carbon Farmers income as there is limited spending on goods and services required in the rural sector to maintain the Carbon Farming businesses. With the improved returns to red meat farmers there is hope that the sale of land for Carbon Farming will be halted and some useful real exportable food production will take place to help make New Zealand great again. New Zealand needs to produce food for the world and not pay some nebulous body money to reduce or off-set the CO2 emissions that have no effect on the climate, but do boost plant production.


Contact AgSafe NZ Ltd - Phone 027-2872886. We can prepare your Work Safe manual and hazard management plan at a very competitive price. We can arrange drug tests and farm maps for your property.

Calf rearing is important for your future production – Check out the Bell-Booth “Queen of Calves” rearing plan. There is research data from Massey University measuring the benefits. They are clearly documented and the long-term benefits are more production per cow and longevity of the animals!! Research has shown calves can be weaned approximately 22 days earlier when Queen of Calves is used.