Good growing conditions in most districts keeps demand for stock positive

Comparing year on year, in early 2022 sheep and cattle volumes have traded back slightly, partly due to land use change, although reduced meat processor staffing has created a sizeable backlog resulting in less appetite and ability to restock. Prior industry concerns associated with Covid have been compounded by Omicron.

Despite global challenges, prospects for red meat and milk remain positive, reflected in price confidence. Stock values for sheep, beef and dairy are ahead of the same period last year.

Much of the North Island welcomed late January rain. Resulting pasture growth lessened pressure to move stock, which would otherwise have been necessary as a consequence of the processor backlog. However, some regions were less fortunate: soaring temperatures and drying winds in King Country, for example, re-initiated dust bowl conditions, increasing pressure to move stock.

Strong demand continues for quality dairy herds, which are selling quickly at solid values. Motivation to maximise milk in the vat is prompting dairy farmers to retain cull cows, which poses some future concern when they eventually look to offload, though could be converted to opportunity for those ready to handle this market.

Matt Langtry, PGG Wrightson North Island Livestock Manager