Issues and Trends
Extremely favourable growing conditions over the summer/autumn of 1999/2000 have led to improved profitability and renewed confidence from hill country farmers. Store stock prices and improved stock condition have allowed this group to capitalise on a lift in market confidence. However, despite the lift in confidence, many farmers are struggling to fully maintain their asset.
The "mid micron wool crisis" is leading to a massive swing by corriedale farmers, and corriedale ram breeders, to try crossbreeding. Farmers in this class have clearly shifted their focus to meat production and have little confidence that wool returns will lift quickly and by enough to improve profitability significantly.
Shearing dates have altered away from pre-lamb shearing due to the stress on ewes, increased feed demand when feed is scarce, and the lack of available shearers. The availability of shearers is becoming a very real issue, as many are not getting enough work to provide a sustainable income. Shearing rates are bound to increase.
Animal health and animal welfare issues are of growing importance. Farmers realise they need to minimise dip residues, but struggle with how to control lice and minimise fly strike. More farmers are completing faecal egg counts prior to making a decision on whether to drench stock. They are very aware of the need to supply the correct drench dose rate and use drench rotations to minimise the opportunity for drench resistance.
Farmers know they need to sow new pastures that optimise animal performance and maximise persistence, but are frustrated that no ryegrass species are presently available to achieve this. They are waiting for the introduction of the new endophyte AR1 into ryegrass, but are hindered because its release has been delayed beyond the autumn 2000 sowing.
Lower labour requirements of cattle, coupled with improved beef profitability and a favourable season, has led to renewed interest in lifting breeding numbers slightly. The high prices paid for calves in the autumn of 2000 has led to more calves being sold than originally planned to capitalise on the prices. Many farmers are considering grazing their calves longer and selling either as forward stores or prime to reduce exposure to market fluctuations in calf prices. Generally, older stock prices are influenced by prime market returns rather than feed supply.
Some farmers are considering expansion of the existing deer herd and diversifying into deer, but capital requirement often halts the process.
Off-farm income, particularly from female partners, is important to maintain viability on many properties. These wages introduced lower drawings and are usually used for personal expenditure. Adjacent horticulture developments have created significant seasonal labour requirements in many areas.
Strong support of the Monitor Farm Programme (Meat NZ/WoolPro) and Sheep and Beef Councils field days by sheep and beef farmers demonstrates their greater quest for knowledge to gain every advantage they can. Although many have computer access at home, few use the Internet as an information source. Most still prefer "hard copy", or attending a field day or seminar to obtain information. Information from discussions with neighbours or respected local people is greatly valued and used.
Low wages, traditionally not as high as the dairy industry, or employment out of agriculture, have resulted in labour shortages. As hill country farmers get older they have tended to employ more casual labour on an "as required" basis to keep costs down.
Pest and weed control issues are still very significant on some properties. The improved profitability in the 1999/2000 year has allowed some catch-up, but in many cases the weeds have got worse over the last 10 years.
Pest control, particularly rabbits and Tb vectors, are a very real concern for hill country farmers. They are worried about the underlying accuracy of the current Tb tests and the impact of inaccurate tests, especially when selling stock to other farmers.
Where potential water sources exist, hill country farmers are evaluating irrigation opportunities, which may allow improved per head production of the breeding stock or greater reliability of finishing stock from the property.
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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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