Waikato/Bay of Plenty Intensive
Model Description
This model represents a wide range of properties on the fringe of the dairying areas. The model has an effective area of 280 ha. Farms of this type have rolling to easy hill contours making them ideal for finishing cattle.
The stock unit ratio favours cattle 55:45. Bull beef is the trademark enterprise of this model, complemented with steer finishing and dairy grazers. While most of the dairy weaner bulls will reach slaughter weights during the first summer, 20% of the tail-end bulls are carried over a second winter. These farms also trade in store steers. The model purchases yearling steers and these are sold to slaughter at 26-30 months (300 kg carcass weight). Dairy grazers complete the beef mix. The model farm carries 70-75 dairy heifers on a full year contract.
The viability of a sheep flock on this class of farm depends on high performance - both in lambing percentage and lamb weights. To this end, the ewe flock is crossed with a high fertility breed and a blackface terminal sire is used over the old ewes and in the third cycle of mating for younger ewes. Wool is of lower priority - the common practice is to "throw everything in" except for the lower value pieces. The model omits two common enterprises - breeding cows and calf rearing. Both of these activities are found on many of the farms surveyed.
Table 1: The Model in Summary 1999/2000 |
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| Effective area: | 280 |
ha |
|||
| Closing stock wintered: | |||||
| Breeding ewes | 1,125 |
hd |
R1yr bulls | 160 |
hd |
| Replacement ewe hoggets | 400 |
hd |
R2yr cattle | 152 |
hd |
| Sheep stock units | 1,503 |
hd |
Dairy heifers | 70 |
hd |
| Total stock units wintered | 3,353 |
su |
Cattle stock units | 1,850 |
su |
Table 2: Key Parameters |
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| 1998/99 | 1999/2000 | 2000/01f | |
| Area (ha effective) | 280 | 280 | 280 |
| Closing sheep stock units | 1,503 | 1,474 | 1,488 |
| Closing cattle stock units | 1,845 | 1,882 | 1,900 |
| Closing total stock units | 3,347 | 3,356 | 3,388 |
| Stocking rate (su/ha) | 11.95 | 11,99 | 12 10 |
| Lambing % | 113 | 113 | 115 |
| Average lamb price ($/hd) | 40 | 44 | 46 |
| Average wool price ($/kg) | 2.50 | 2.54 | 259 |
| Total wool produced (kg) | 6,880 | 6,270 | 6,800 |
| Wool (kg/su) | 4.70 | 4,17 | 4.61 |
| Average 30-month steer ($/hd) | 730 | 950 | 950 |
| Average 20-month bull ($/hd) | 570 | 800 | 810 |
| Gross farm revenue ($) | 148,920 | 198,150 | 191,200 |
| Cash farm surplus ($) | 30,200 | 69,260 | 55,920 |
Key Points
- The 1999/2000 year is best described as a "season of lost opportunities" because the dry summer, eczema losses and stock shortages, limited the opportunity to capitalise fully on higher prices.
- The model farm achieved a lift in gross farm revenue of 33% and cash farm surplus more than doubled to $69,260.
- The rising beef market provided high finishing margins in 1999/2000 but the shortage of replacement store stock lifted prices to such an extent that margins will fall in 2000/01.
- The tighter margins on beef have renewed interest in expanding the sheep flocks, particularly in those flocks that are achieving high performance.
- Prospects for 2000/01 are highly variable - calf rearing and breeding cow operations are likely to maintain their cash farm surplus, but farms similar to the model can expect a decline (24%).
Physical Factors
The region has experienced its second year in a row of significant summer rainfall deficit - the exception being the Coastal Bay of Plenty district, which had a wet summer. The Rotorua and Taupo districts received less than 60% of normal rainfall in 1999.
Winter conditions in 1999 were warmer and drier than usual, resulting in good pasture utilisation. These conditions continued into the spring, providing adequate high quality feed. Good late spring rains provided excellent pasture growth in the December/January period. The summer dry period extended for 70 days from early February to mid-April. This was followed by an excellent autumn that extended through to the end of May. Nitrogen has been widely used to extend the pasture recovery, particularly on cattle finishing areas.
Facial eczema spore counts rose to high levels in early autumn. However, farmers were better prepared than they were for the 1999 outbreak. By the time the worst of the 2000 facial eczema challenge arrived, many farms had destocked to winter numbers. Veterinarians reported high levels of liver damage in lines of slaughtered stock, but clinical cases are much less in evidence than in 1998/99. Stress on stock during the 2000 winter will determine whether or not the carryover impact in 2000/01 is significant.
Ewes went to the ram in autumn 1999, 2-3 kg lighter than normal. However, the 2000 lambing percentage (113%) was equal to the previous year. This was attributed to improved lamb survival as a result of the favourable weather during and after lambing.
The main carryover effect of the 1998/99 eczema/drought was in the high empty ewe rate. Empty rates averaged 5-8% of ewes mated, and ranged as high as 15-20% on some farms. Pregnancy scanning is expected to show an above normal rate of empty ewes in 2000.
Ewes were on a declining plane of nutrition through the first half of the 2000 mating and this was compounded by the late eczema challenge. However, farmers are confident of a lift in lambing performance to 115-117% in 2000/01. They suggest that the facial eczema impact will be more than compensated by ewe weights that are 1-2 kg heavier than last year. The lambing enhancer, Androvax, has been widely used on the surveyed farms this autumn.
Cattle liveweights are up by at least 10-15 kg on the previous autumn but were still below target. Farmers across the region reported that live weights were well up on last year until March, but many have reported nil weight gains in the dry summer/autumn period. Finishing cattle started to recoup the lost ground in the favourable late autumn period.
A late build-up of crickets has slowed autumn pasture recovery, particularly in the Northern Waikato. Clover weevil appears to have caused less damage than in the previous year.
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