Breeding herd decline foreseen

Press, Volume CXV, Issue 33815, 11 April 1975, Page 6

Breeding herd decline foreseen

The Meat Board sympathised with cattle breeders in their difficulties, but it was doing its best to help the industry within the limits of the funds available to it, a spokesman for the board said this week.

He was commenting on a letter to “The Press” from Mr M. F. Vernon, of Waiau, on the plight of cattle breeders and the likelihood of a decline in the beef herd because of the current level of weaner calf prices. The spokesman said that when the board had initially brought down its scheme for guaranteeing future beef prices to give confidence to producers about the future of beef, it had been thinking specifically of weaner calf prices. Its substantial support of the beef schedule was reflected back to weaner calf sales and the sale of older cattle in spite of Mr Vernon's comment. It was known that when the board raised the level of the schedule in February cattle prices in the North Island picked up quite a bit.

If. however, weaner prices really reflected market realisations then the position would be much more serious, for in the case of some of the prime grades about half of the price being paid to the producer was coming out of the board’s or industry’s funds.

"As a farmer supporting a large breeding herd I am concerned at the level of current weaner calf prices,” Mr Vernon wrote.

“Because of these prices it does seem likely that there will be a substanital

drop in beef breeding herd numbers during the next year. This will not happen immediately as the majority of these cows are in calf. Any severe reduction in numbers, therefore, is likely to take place in the autumn. The farmer can then take advantage of a guaranteed price, and also the calf that the cow is carrying. Any severe reduction in cow numbers will obviously be by slaughter, and the resulting mountain of manufacturing beef will be of considerable concern.

“It is fair comment, and a disappointing one, that the beef breeding industry has received no assistance in the current beef crisis. Breeders relying financially on the annual sale of weaners are unlikely to continue this method of beef production unless recognised by the Meat Board, Federated Farmers and the Government. The sublime hope of money filtering though the industry is just naive.

“The important point to remember is that before anyone can fatten cattle and take advantage of boom prices, or a 55c schedule, the animals must be born.

“There does seem a marked lack of concern regarding breeding herd numbers. Perhaps a severe drop in cow numbers is accept-

able to the industry in general. If this is the case, then it can be concluded that very few weaners will eventually be sold, the breeders fattening their own progeny. The obvious argument is that breeding country, in many cases, is not fattening country. This may be fair, comment. However, because of the reduction in herd numbers, and subsequent management changes, the progeny will be fattened. The winterer and fattener may well have to consider sheep, remembering that fewer weaners on the market will lower their eventual return.

“With assistance given to the store sheep producers, the fat lamb producers, and the fat cattle producers, it is tittle wonder that beef breeders feel left out in the economic cold to fight for themselves.

“There seems to be a general acceptance of the current weaner prices, not only by the farmers concerned, but also by those that have thei fingers on the pulse of the industry in general. It may well be that the pulse of the breeding industry will be difficult to find in the very near future," said Mr Vernon.