The September snow storm in Southland and South Otago aren’t the only cause of stock shortages.
Reports from the North Island show lower than expected lambing percentages and slower growth rates of both feed and stock because of cold weather.
Straight Furrow (online here next week) predicts the worst season ever for meatworkers.
However, the shortage of stock and high demand for lamb overseas should mean farmers get better prices.
The ODT reports:*
Weaning hasn’t even started and meat companies and stock agents are engaged in a savage procurement war which has pushed the price of store lambs to over $70 and old ewes to $80.
. . . In September, Beef and Lamb New Zealand forecast a 17.4kg prime lamb would be worth $82 this season, the same as last season’s return, but given the extreme store lamb price and the impact of the storm there is speculation this year’s price could be pushed towards $100.
The high dollar will erode some of the gains of higher prices but it would be a lot worse to have the dollar high and demand and prices low.
Alliance Group reported an operating surplus of $29.6 million from a turnover of $1.4 billion for the year ending September 30. It will be distributing a pool of $12.6 million to shareholders and a 5% fully imputed dividend.
It has no debt and is in a strong position to weather the stormy season ahead.
Silver Fern Farms has yet to make its annual report public.
* In case you’re wondering that is my farmer who’s quoted later in the report.