August 20, 2018

NZ beef cattle herd grows 2%; farmers buoyed up by good prices

New Zealand's beef cattle herd has increased 1.9% over the past year to 3.7 million, according to a survey by Beef + Lamb New Zealand's Economic Service, Otago Daily Times reports.

A hike in weaner cattle in Marlborough-Canterbury—driven by younger cattle being retained by beef breeders—was the largest contributor to the increase, the report said.

In Otago and Southland regions on New Zealand's South Island, breeding cow herd increased 2.3% to 0.15 million head. The increase was spurred by Otago, which was up 3.5%.

Farmers were encouraged to increase the size of their breeding herds by the positive returns from beef, both store and prime, according to the B + L New Zealand Economic Service survey.

Moreover, it was reported that cows had been in excellent condition because of favourable pasture growth, especially in Central Otago hill country.

Decline in sheep flock

Meanwhile, a decline in the sheep flock has been slowed by an increase in hoggets, which were retained to replenish declining ewe flocks, according to the Ortago Daily Times report.

It said the number of breeding ewes declined 2.1% overall. The decline was 3.5% to 8.3 million in the North Island, while in South Island it was 0.8% to 9 million.

The decrease was largely attributed to farmers taking advantage of strong prices for mutton.

Lamb prices have cracked the NZ$8 (US$5.30) per-kg mark, and ASB Bank's latest Commodities Weekly report said they were now at their highest levels.