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UDDERLY IMPORTANT GRAZING - Hidden Effects
As more and more farms convert to dairying the need for support blocks increases. I feel we are reaching an interesting balance in parts of the South Island where it is becoming difficult
to secure good, consistent, reliable grazing blocks for young stock. Many of the grazing blocks are now moving into dairying themselves which only adds to the problem. Coupled
with better returns for sheep and beef especially - grazing needs to “compete” for its place on
farms if need be. Ultimately this means grazing prices will rise but note that the payouts are high so the industry can afford a small increase to compete with sheep gross margins. Also
the industry has to look at historical “fringe” areas to graze which inevitably brings the “runoff” back into question! To help avoid uncertainty of both long term and winter grazing, one can now see the advent
of forward sale contracts between dairy farmers and winter grazers so they can sow the crop with a commitment that it will be eaten. Over the last two winters there has been surplus
feed around so dairy farmers haven’t seen the need for this but now with other viable options to eat this feed, dairy farmers will have to start looking at hedging their requirements. Take a look at the lamb drop – it’s been very good with high survival in most areas. So
theoretically, coupled with potentially poor autumn 2012 growth and / or a wet winter, feed could be at a premium. It works for both sides to forward contract some of the winter
requirements and “certainty” has its price for both sides. Within Canterbury more often than not now we need to move replacements away from their immediate areas to find suitable
grazing and I believe this is the start of what could become normal.
UDDER FACTS BREEDING BULLS This year there has been widespread acceptance of the blood testing and vaccination for BVD. The blood tests now needed are EBL, BVD – antigen only -
followed by 2 vaccinations for BVD at least 1 month apart and the last vaccination should be 2 weeks prior to bulls going out with heifers or cows. Once again there are plenty of bulls around this season. The surplus yearlings last year have created a surplus of 2 year Jersey bulls this season and a number
of farmers have reduced the usage of yearling Jersey and replaced them with 2 year Jersey. Therefore 1 bull can be used over both classes – yearling heifers and cows, thereby reducing
the cost of bulls. The returns for bulls at the end of mating should be much better this year as the meat schedules are significantly higher and it appears the
schedules could hold at these levels through into next year.
UDDERLY INTERESTING EXPORT By selling calves from weaning to possibly 1 May, the blood tests can be avoided with SIDF, so only
the paper work – profiles and farmer declarations - need to be filed. It is a way to sell the lower BW’s
for very good money while keeping the best recorded calves, as there is no BW level requirement. Any numbers will be considered and the price alters often so it pays to ring
one of my Team for an on-going update.
UDDERLY IMPORTANT PRICES (as at 25 October 2011) $/HEAD + GST MIXED AGE COWS In-milk 1800 – 2300 1 June delivery BW >70 2200 – 2350 1 June delivery BW <70 2000 – 2200 CARRYOVER COWS BW 70 – 110 1700 – 1750 IN CALF HEIFERS Delivery now BW >100 1500 – 1600 Delivery now half and non-recorded 800 – 900 Delivery 1 May BW >100 1800 – 1900 Delivery 1 May half and non-recorded 1200 – 1300 CALVES At weaning BW >100 700 – 800 Half and non-recorded 350 – 400 Export (depending on numbers in line) 900+ BULLS 2yr J and J / Fr (fully blooded & vaccinated) 1,200 – 1400 2yr J and J / Fr – Lease 300 – 450 2yr Beef / Dairy 1,200 – 1,400 2yr Hereford, Angus, pure beef 1,600 – 1,800 GRAZING Grazing prices fluctuate too much between areas to accurately list prices. Prices also depend upon farm size, facilities,
dryland / irrigated, grass types, climate, topography and graziers experience as just some of the variances. SIDF - created and operated by the same family since 1985
ANUDDER PROFILE Fay Watson BBS, CA I thoroughly enjoy the buoyancy of the stock transactions flowing daily through Head Office and have real pleasure in leading the tightly knit team
at SIDF - our agents in the field and the administration ladies at SIDF Head Office. Working with SIDF Directors Paul and Julie Brown is giving me
wide scope to apply my governance and management skills. I have two grown children and my husband, Tony and I love the life at Lake Hood where we’ve lived for 7
years. Our leisure time is gardening, reading and relaxing or most preferably driving the motor home to any remote
South Island location. The family property in the Marlborough Sounds is most often our holiday destination and escape.
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Once again very high prices are being paid for
calves and now rising 2 year heifers that are suitable. This is likely to continue at least for this season. The paper work and blood testing
continues to be problematic but if we want the high price, we must complete this.
I joined SIDF as General Manager early this year. As a Chartered Accountant, my background includes 25 years corporate management,
project management and IT from previous roles at Ashburton Licensing Trust - and its Charitable Foundation – Ashburton Trading Society and Gabites Ltd Chartered Accountants.
A North Islander originally, I’ve lived and worked in Canterbury for 30 years. My outside business interests include
being an elected board member of the Ashburton Licensing Trust, a member of the Tinwald Domain Board, and a member of the Ashburton Lion Foundation Grants Distribution Committee.