Prices for weaned calves at the start of the new sales season in New Zealand are hitting record highs amid increased demand and lower supply.
Sales of six-month-old weaner steers and heifers this month at Stortford Lodge in Hastings, an early benchmark ahead of the peak sales period in April, rose between 17 and 29 per cent on 2015, which was itself at record levels, according to AgriHQ. Weaner sales generally finish early May.
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Farmers who shed stock ahead of summer last year on concern about the impact of a dry El Nino weather pattern were now seeking to restock as rain in many areas through January stimulated pasture growth. Meanwhile, farmers who had previously provided grazing support to the dairy industry are now looking for other sources of income such as fattening weaners as dairy farmers look to rein on costs.
Cow numbers are also declining, with industry body Beef + Lamb New Zealand forecasting the national breeding cow herd fell below 1 million for the first time last year. That led to fewer weaner calves being born last spring with early estimates forecasting a drop of 50,000 head to 1.043 million, according to AgriHQ's 'Weaner Fair Outlook 2016' report.