Farmers Weekly NZ April 26 2021

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5 Forecasting with a difference Vol 19 No 16, April 26, 2021

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Shipping impacts kill rate Neal Wallace neal.wallace@globalhq.co.nz

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ONTAINER shortages and shipping issues are forcing some meat plants to work shorter weeks, as companies grapple with the largest prime beef kill in over 30 years. Alliance Group has on occasion reduced operating hours at its Smithfield and Pukeuri plants in the South Island and Silver Fern Farms (SFF) has on three instances reduced processing capacity at one of its plants as they manage logistical issues. The shipping logistic problem affects all species, but coincides with a record prime beef kill. AgriHQ analysts report 637,700 prime steers and heifers have been killed in the year to March 27, 92,000, or 17%, more than the previous record kill, which was last year. Despite logistical challenges, companies are selling record volumes with 55,700 tonnes of beef shipped in March, a monthon-month increase of 4500t, and

10,000t more than the five-year average. Demand is primarily being driven by China, which took 20,600t in March, 300t more than February, and the US, which took 18,800t, 2300t more than February. South Korea and Japan also increased purchases of beef in March. This demand is helped by Australian farmers rebuilding their herd, which has seen 200,000 fewer cattle killed in the eastern states in the six weeks to April 12. AgriHQ senior analyst Mel Croad says this demand is not flowing through to the farm gate where prime cattle prices are 20 cents to 40c/kg below the five-year average, due to a combination of higher slaughter rates this season and reduced foodservice demand globally, which is impacting highvalue cuts. It is worse for farmers in the South Island, with AgriHQ saying they are receiving 50c/kg less than those in the North Island. There has been an oversupply of cattle in the South Island leading to processing backlogs, whereas in the North Island, competition has

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SELECTION: Without leaving home, 18 Hereford bulls will be offered in the national seedstock sale this year.

Hereford bull sale goes live Hugh Stringleman hugh.stringleman@globalhq.co.nz NEW Zealand Herefords breed society is staging a national seedstock sale of 18 bulls that will not leave their vendors’ properties until delivered to the successful bidders. The national sale at 10am on May 11 will be live streamed on PGG Wrightson’s bidr platform in a Helmsman format. Bids must be placed in person at the sale venue in Palmerston North or by telephone to a PGW agent or three NZ Hereford executives. No online bidding will be available. The venue is Orlando Country

Club on Rangitikei Line, Milson, where the breed society’s annual general meeting and dinner will be held the day before on May 10. Breed society general manager Posy Moody says the fully-electronic format, without bulls travelling to a sale venue, was safer, cheaper and a natural development with the technology available, and after last year’s disruptions. “The Helmsman format gives every vendor a fair opportunity regardless of lot position, and buyers can switch tack if their first pick becomes unavailable,” Moody says. Assessments had been

conducted on bulls that breeders put forward and some potential buyers were travelling the country to make their own structural assessments ahead of the sale. Bulls are being sold by 18 vendors from Kaeo in Northland down to Gore in Southland. The sale is set down for 40 minutes, with an optional extension of two minutes under the control of PGW stud stock auctioneer Cam Heggie, who will also be the compère. The catalogue with all breeding values and pedigrees, videos and still photographs of all lots are already available on the bidr website.


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