SCHEDULE BAD NEWS FOR FARMERS — THIN PRICES FOR FAT LAMBS

Waimarino Bulletin, Volume 3, Issue 21, 15 October 1985, Page 14

SCHEDULE BAD NEWS FOR FARMERS — THIN PRICES FOR FAT LAMBS

Farmers are well aware that the new lamb schedule for 1985-86 means a big reduction in lamb returns. We are faced with this schedule, so it is important to maximize returns. The graph highlights a number of features: •It is important to get lambs into the medium-weight range — 1 3-1 6 kg — as there is a premium paid over light lambs. Point A on the graph shows this. If a lamb grades YL at 12.5kg it will net around $11.75. Ah increase

of 0.5kg to 1 3.0kg returns an extra $2.40, netting $14.15. Farmers cannot afford to draft lambs under 13.0kg carcass or 32kg liveweight. It is essential lambs are weighed to ensure that they will kill in the mediumweight ranges. •There is a very high discounting of trimmer T grade and over-fat F grade lambs. Point B shows this on the graph. Taking a 14.0kg lamb for example, the effect of increase in fat reduces the value of the carcass considerably. Lean YM value $15.70, prime PM value $13.88 ($1.82 loss); trimmer TM value $7.58 ($6.30 loss); overfat FM value $6.04 ($1.54 loss). As far as drafting lambs at heavier weight, it is vital to identify those fatter P-grade lambs that need to be drafted at 13-1 3.5kg carcass weight, hence avoiding the penalty of overfatness. Farmers should leave ram lambs entire or make them cryptorchids to minimize the risk of grading T's. Ewe

lambs should be sold Store or at 13kg carcass weight which may be about 3-5kg lighter than ram lambs. •Heavy-weight lambs receive little premium. The new YX grade is only 3c per kilogram higher than the PX lamb. In reality the grade is a waste of time. The big problem with heavy-weight lambs is the risk of dropping to trimmer or oVerfat grades. If an 18kg lamb grades in the first-fat grade (TH) it is worth $11.16 less than if it graded PX, a drop from $20.46 to $9.30 — point C on graph. Farmers should only attempt to achieve high weights with ram lambs that have been checked by the works drafter to ensure they won't go into fat grades. To summarise: ★ lambs must kill over 13.0kg in the mediumweight ranges; ★leave ram lambs entire or cryptorchid to keep them lean as there is a large discount for trimmers and overfats;

★heavy-weight lambs should be monitored regularly with works drafters to ensure that they are drafted before they go into fat grades. The schedule makes returns from lamb production on hill country very poor. Traditionally it has been hard to kill lambs over 12.5kg carcass weight from this class of farm land. I would envisage a buoyant store market for lambs from hill country blocks this season, with farmers using the schedule as a backstop in terms of the minimum price they receive for lambs. Farmers should realise that this schedule is an advance payment of 90 per cent of the true schedule. However over the past few years the Meat Board has shown losses on its sheepmeat trading account, making it highly unlikely that there will be a final payment at the end of the 1985/86 season. Will Wilson Farm Advisor, Waimarino County