HOW TO RIDE OUT THE STORM
HOW TO RIDE OUT THE STORM
At first glance, there appears to be little to cheer about in the sheep industry. The continued strength of sterling and the possibility of added offal disposal costs mean the outlook for finished lambs is less than rosy.
And for hill producers, the governments sudden – and unexplained – decision to cut HLCA payments must come as a financial body-blow for which no one was prepared.
It seems initially that there is little one can do other than attempt to weather the storm.
But, as an MLC economist warns in this Sheep Update, the temptation to hold on to finished lambs in the hope that the market perks up can be dangerous – particularly this year, with an abundance of forage on farm. Over-fat, over-weight lambs are unlikely to find a market, compounding difficulties.
Many producers will be forced to closely
re-examine costs. Preparing a preventative health plan could be one way to profit and make better, more targeted use of costly
vaccines and medicines.
But new research reported in this Update bodes well for all producers. A tight squeeze on costs and increasing concern over wormer resistance forced New Zealanders to look at alternative parasite control. The results of their research show that worm burdens can be reduced by better nutrition.
We can only hope that UK researchers, like their Kiwi counterparts, will take up the gauntlet, and help, in part, to steer the sheep industry towards improved profit.