SUPPLIER NEWSLETTER NOVEMBER 2014 OCTOBER 2014 AVERAGE LAMB DATA Plant Av. Weight Plant DO% *Opted SMY % 20.9kg 46.1% 101.2% * SMY result is from those who opted for results / payment OVATION NZ MARKET UPDATE Chilled lamb pricing has reached a peak into France with a number of importers having pulled back volumes for Xmas sales as they do not wish to get left with possible high priced unsold inventory. Supermarkets in France have not yet committed to large promotional activity hence the cautious nature being taken. There is also some cheaper Australian product being offered in market as well which is impacting on NZ pricing. China continues to take good volumes of lamb and mutton items. There is still some large frozen mutton inventory in this market which is creating some apprehension on forward sales for mutton. It would be fair to say this volume will be consumed as we lead into Chinese New Year but recent economic figures out are showing a slowdown in the general Chinese economy. Pressure from the USA on lamb rack pricing is continuing. While we are trying to keep pricing at existing levels, the expectation is pricing will ease. With the new season upon us and more lambs available, importers are only buying hand to mouth and have no interest in heavy weighted racks given the large inventory already available. IMPORTANT DATES NOW – B+LNZ Glammies Entries Open 7 NOVEMBER – B+LNZ MONITOR FARM COMMUNITY DAY @ ANAWAI 2069 Kahuranaki Road, 1 – 4.30pm 11 NOVEMBER – CHB A&P Show Sheep Section Entries Close 14 – 15 NOVEMBER – CHB A&P Show 23 NOVEMBER – Flemington School Mud Run 4 DECEMBER – 1st XV Meeting 5 DECEMBER – B+LNZ Glammies Entries Close BEEF + LAMB NZ HAWKE’S BAY MONITOR FARM COMMUNITY DAY @ ANAWAI, 2069 KAHURANAKI ROAD FRIDAY 7TH NOVEMBER 1pm THE OLD GENERAL MANAGER IS BACK…. After 3 years ‘walkabout’ in Australia and Wales, Jim Goodall has re-joined the Progressive Meats team as General Manager. For those of you who do not know Jim, here is a bit of background on him. He has spent most of his life in Hawke’s Bay, being educated at Havelock North High School and starting in the Meat Industry at Weddel Tomoana. While at Tomoana he completed the Massey Meat Diploma Program. Jim has extensive meat industry experience, including involvement in market development in the USA & UK for Lamb and Wagyu beef. Most recently Jim has been based in Adelaide as General Manager for FPE, specialists in equipment supply to the NZ and Australian food processing industry. Jim and his wife Di are delighted to be relocating back to Hawke’s Bay with their two boys, Henry and Jacob. DRESSER PELTS FOR SPRING LAMBS The first lines of new season lambs are coming through and we have begun selecting for the premium dresser pelt grades for these spring lambs. Key attributes you can control to meet these premium grades are:  Avoid crutching above the tail to maximise pelt length  No raddle on the pelt (please mark lambs on the head). Our weekly schedule outlines the specific criteria we are selecting for each week, which is currently (WB 3 Nov): GRADE SPECIFIC AV WOOL DRESSER WOOL + PULL SKIN $ PELT PLL001 65mm 0.75kg $5.23 $2.96 If you have any queries regarding presentation or dresser pelts please contact either Em Rough or Emma Oliver on 0508 88 77 88 or [email protected]. Any queries or comments please contact Emma Oliver 021 243 4349 / Emma Rough 0505 88 77 88 www.progressivemeats.co.nz STORE MARKET REPORT By Vern Wiggins September and October have seen strong demand for all classes of stock. Cattle have seen very strong per kg prices in the market along with record schedule prices being paid. Short term cattle 500 kg and better making in excess of $3 per kg. Longer term 2yr cattle not quite sought after to the same extent fetching $2.85 to $3 per kg. This would suggest farmers have confidence in the short term, but are a little more cautious further out. Good annual lines of yearling steers well sought after with top lines mid 300kg and better fetching $3 to $3.20 per kg. Heifer market has been very similar with quality cattle selling at $3 per kg to $3.20. Bull market was slower to react due to a later kill on older bulls but has gained momentum now with increase in schedule. The 100 kg bull market peaked at $440 and has now got back to the original contract price at around $400 to $420. All classes of sheep are selling very well. Mutton values on dry ewes have been right up to schedule values and in many cases above. Old season lamb a similar story due to suppliers needing to fill their contracts. The last two weeks have seen the first of the spring lambs appear with very good money been paid - $3.50 to $4.00 per kg although that eased a little this week on medium types. HB SHOW EXPORT LAMB RESULTS Congratulations to our entrants and prize winners for this year’s HB Show Export Lamb Competition. Our judges on the hoof were Digby Philip (Lean Meats NI Livestock Manager) and Keith Burden (PGG Wrightson). They judged the lambs on presentation, grade (BCS) and evenness of the pen of 3. Hook results were judged on meeting the HCW grade for each class, GR, Dress Out Yield and Saleable Meat Yield. . Class 4004 – Ovation NZ New Season Lamb Hoof: Hook: 1st Ben Lomond 1st William Wallace 2nd William Wallace 2nd Hamish & Lea Giblin rd 3 Ben Lomond 3rd Ben Lomond (all hoof placed entries had 1 lamb over 21.9kg so they were disqualified for the hook and overall prizes) Overall: 1st William Wallace (4th on hoof / 1st on hook) 2nd Hamish & Lea Giblin (6th on hoof / 2nd on hook) 3rd Ben Lomond (5th on hoof / 4th on hook) Class 4005 – Lean Meats Old Season Lamb Hoof: Hook: 1st Hamish & Lea Giblin 1st Papawai Partnership nd 2 Waiwhenua Farms 2nd Waiwhenua Farms rd 3 Papawai Partnership 3rd Papawai Partnership Overall: 1st= Waiwhenua Farms (2nd on hoof / 2nd on hook) 1st= Papawai Partnership (3rd on hoof / 1st on hook) 3rd Hamish & Lea Giblin (1st on hoof / 4th on hook) PROGRESSIVE LEATHERS UPDATE Pelt demand remains slow. Some NZ companies still have large stocks of old season pelts and are releasing these into an already depressed market, further reducing prices. These have continued to slide another 15-20% in the last month. Tanneries in Europe and Asia are being inundated with offers from NZ and are more discerning than ever in which grades and suppliers they buy from. In addition most are refusing to buy early new season pelts due to inferior leather characteristics, insisting on old season or preferring to wait until Jan-Feb 2015. Lower finished leather prices have assisted in opening doors that had been closed for some time. Large retailers in USA and Europe are showing renewed interest in leather garments and if orders are able to be concluded, these have the capacity to absorb much-needed volume. Even so it will be well into next year before this takes affect and stocks of raw material / finished leather reduce back to more normal levels. Prices will remain under pressure until this happens. Wool markets are relatively stable but it has been reported that China is holding large stocks of fine Australian wool. The impact on demand for new season NZ wool remains to be seen. Good sales of new season wool-on Rugskin have been made, with the majority destined for China. An attractive premium is available for 950mm Rugskins above pelts + wool. ANAWAI MONITOR FARM FIELD DAY 2069 Kahuranaki Road, Elsthorpe Friday 7th November - 1pm – 4.30pm This Friday, Anawai is hosting another B+LNZ Monitor Farm Community Day. The agenda items for the day include: 1. Weaning Strategies for the commercial ewes a. Cut off weights for milk lambs b. Building the ewes up for next year’s mating c. Ensuring better pasture covers for lambing next year 2. Property development progress with fencing and water 3. Getting the best out of the beef cows over the summer 4. Progress with plantain 5. Options to enhance wool revenue a. Wools of NZ Camira lambs wool contract b. Management for better pelts The afternoon is guaranteed to be an informative one and concludes with a BBQ. Please bring a bike and helmet for the farm tour. Any you have any queries please contact Mark Harris on 027 577 9991 or email [email protected].