Test for Angora confidence after taxation proposals

Press, 10 January 1986, Page 20

Test for Angora confidence after taxation proposals

The Government wants to encourage the development of New Zealand’s goat industry, according to the Minister of Agriculture, Mr Moyle.

Mr Moyle said he was aware of concern in the Angora goat industry that livestock prices might be unduly depressed because of livestock taxation changes announced in the Government’s December economic statement.

But this fear of falling prices was largely an overreaction, said Mr Moyle last week. He was confident that the Brash consultative committee, appointed by the Minister of Finance to look into the new livestock taxation measures, would consider carefully all aspects of the changes. If there was a problem with livestock taxation, Mr Moyle said the committee would make recommendations accordingly to the Government. There was plenty of room to accommodate changes if needed. Although the Government wanted to encourage goat farming, it did not want the industry to experience an excessive boom which could result in difficulty later, as had happened with some other industries, said Mr Moyle. The national president of the Mohair Producers Association, Mr Richard Macdonald, has urged goat farmers not to panic because of the new livestock taxation measures. Mr Macdonald is confident that the retrospective aspects of the taxation package, which make existing goat farmers liable to be taxed severely on existing livestock will be relaxed by the Government. Uncertainty about the effects of the livestock taxation changes has confused the goat and deer industries, but Mr Macdonald is keen to assure goat farmers that they have a very viable future.

Goat farmers wanted a workable taxation system to ensure the industry remained stable, said Mr Macdonald. It was important that the economics of goat farming were not upset by hastily introduced alterations to the taxation structure.

A goat auction at Timaru shortly after the Government’s livestock taxation

measures were announced resulted in a disappointing demand, largely because of the confusion over the Government’s intentions. However, Mr Macdonald has welcomed a subsequent easing in prices of medium quality Angora bucks because this would encourage the faster breeding of bet-ter-quality crossbreds and therefore increase the amount of quality fibre for sale.

The New Zealand mohair industry is aiming at an Angora goat flock of seven million by 1995, producing almost 20 million kgs worth $3OO million at today's value.

As Angora numbers increase, livestock prices are expected to become more reasonable and accessible to a wider range of buyers, a trend seen as desirable in the long term by the industry.

But a sudden drop in prices would harm the industry, hence the concern of Mr Macdonald on the eve of, several major Angora auctions.

Most industry leaders would not like to see auction prices reach the giddy heights of last season, but premium quality animals this year could still fetch outstanding prices, believes one breeder.

“But people have got to be sensible and accept the fact that not all registered Angoras will be worth top money,” he said. In January last year, the goat industry hit the headlines when two Angora bucks sold for world record prices of $140,000 and $90,000. Many sales of purebred stud bucks were between $lB,OOO and $20,000, commercial bucks were $9OOO to $15,000, top stud does regularly fetched $22,000 and commercial does $12,000.

Prices remained buoyant for the remainder of the year as farmers and investors moved into the industry. The first indication of how prices for good quality stud Angoras will fare this season will come in the next few days at several auctions run by private studs, including Angoras from the Atawhai Tasman stud, of Taupo, which has imported goats fom Australia.

The showcase for the mohair industry will be the national sale at Hamilton on

January 17 where 220 registered does and bucks will be offered. Last year’s national sale signalled the start of the Angora boom when 125 goats grossed $l.B million and a buck set a worldrecord price of $52,000. This record was quickly smothered a week later by $140,000 for a Waitangi Lands and Survey Department buck and another buck sold for $90,000 at the South Island Angora sale as prices continued to boom.

The eighth annual sale of Waitangi Angoras on January 23 this year will contain more than 250 registered or G 1 goats. Last year’s sale grossed more than $5 million, but Mr Alan Aitken, superintendent of Waitangi’s Wakelin block, does not envisage this year’s auction reaching the same peaks. However, Mr Aitken believes there will be a shortage of good quality does again and bucks with good backgounds and of a good size will find a ready market. It was difficult to assess the amount of interest, but there had already been inquiries from regular buyers who had attended the Waitangi sale previously. Mr Aitken said he did not

expect the sale to have an air of hysteria as buyers would have to apply themselves carefully when selecting stock. The Lands and Survey Department in Christchurch will hold its first auction of Lands Canterbury Angoras, bred from Waitangi bloodlines, on January 27 at the Addington Showground. The Lands Canterbury line-up includes about 70 Angoras, mostly two-tooth bucks although some twotooth and older does will be offered.

A spokesman for Lands Canterbury Angoras said the sale had already attracted a lot of interest and it would give purchasers the opportunity of buying goats with Waitangi backgrounds without having to travel to the North Island.

The South Island’s major Angora sale, organised in previous years by Pyne, Gould, Guinness, will be a combined event this season with inputs from Wrightson N.M.A. and Dalgety Crown. It will be held at the Addington Showground on January 30 and will include about 300 purebred bucks and does and G 1 does. An auction of more than 350 G 4 to G2 does and G 1

bucks will be held the following day. The Angora sale will include stock from leading breeders throughout the South Island, ranging from Southland to Marlborough. Last season’s corresponding event grossed $1.3 million. An auction of Angoras will also be held at Timaru on January 29 proceeded by a feral goat sale on January 28. Evapotranspiration Christchurch: Thursday, Jan. 2. . . . 1.0 Friday, Jan. 3 5.5 Saturday, Jan. 4 . . . . 5.5 Sunday, Jan. 5 5.3 Monday, Jan. 6 3.8 Tuesday, Jan. 7 4.1 Wednesday, Jan. 8. . . 4.3 Weekly total 29.5, Average for Jan. 130 mm Culverden: Weekly total 27.9 Average for Jan. 130 mm Timaru: Weekly total 29.0 Average for Jan. 130 mm Winchmore Irrigation Research Station: Weekly total 20.3 Average for Jan. 130 mm Kurow: Weekly total 37.6 Average for Jan. 130 mm