Issues and Trends
A number of farms have noted the spread of Kikuyu on hill country farms. Farmers believe they need more animals, which could be used to control this grass in autumn. Monitored farms indicated a 10% increase in breeding cows between June 1999 and June 2001. Three reasons given for this increase are the improved weaner calf price, higher prices for dairy beef calves, and the spread of Kikuyu.
Expenditure on repairs and maintenance has increased to just over $40/su, compared to an average of $26/su for the past five years. All this extra spending is on deferred maintenance and is being spent on metal for tracks, drainage, upgrading water supplies, and the renovation of fences and yards.
Although wool prices rose dramatically in the last three weeks of the financial year, farmers are still concerned about the prospects for wool and the lack of information surrounding the McKinsey report. The review is late and the costs have escalated to over $3 million. The sheep farming community is divided by the suggestion to remove the wool levy. Some farmers believe wool returns are so low the levy may as well be discontinued, while others believe the levy should remain so that money is available for promotion and research.
There has been an increased demand for friesian bull calves for rearing in spring 2000. A number of large scale calf rearing groups from the Waikato have been buying autumn born four-day-old calves for $135-$160. On the spot market prices have been as high as $200. These calves will need to sell for at least $350 at 100 kg liveweight to give the rearers an adequate return. Monitored farms will, on average, rear the same number of calves during spring 2000 as they reared last spring, and expect to have to pay $100/hd on average for spring born calves.
Farmers are supportive of the supply contracts offered by the major meat processors. Many properties have registered for quality assurance programmes. In most cases farms can meet the required standards by simply keeping better records of their current practices. Each processor has its own system and farmers consider a national strategy and standard needs to be put in place.
Farmers are concerned about recent changes in government policies. Examples are the removal of competition for ACC, and changes to employment legislation. Farmers consider that stability of policies is needed to give the agriculture industry confidence to continue to invest in their businesses.
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Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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