Lamb schedule down — mid-range best deal

Waimarino Bulletin, Volume 3, Issue 45, 22 April 1986, Page 11

Lamb schedule down — mid-range best deal

The new lamb schedule brings anything but good news for farmers. Prices are down at least 70c per head for most grades, some by as much as $2.00 per head. It is vital that farmers understand the grading system and schedule values and attempt to kill lambs which fall in the better paying grades. With a constantly changing schedule making long-term decisions is difficult to "say the least. There remain however opportunities to make the best of a poor deal to ensure farmers are getting the best returns that the present schedule allows. Using values earned for the week 1 3 April, with individual weight and grade

lambs assuming $11:60 killing and freight charges and 1 .0kg wool pull, a number of conclusions can be made. •There is a definte advantage in producing M-grade lambs, that is over 12.5kgs and under 16kg carcass weights. For instance: 12.5kg YL lamb = $11.29, 13.0kg YM lamb = $13.52. This gives an advantage of $2.23 per head for only 0.5kg of extra carcass weight. Asecondexample: 12.5kg PL lamb = $9.79, 1 3.9kg PM lamb = $11.83. This gives an advantage of $2.04 per head for only 0.5kg extra carcass weight. •There is a definite disincentive in producing Xgrade heavy lambs, that is over 16kg , unless they will

grade YX. At these carcass weights a high proportion of lambs will fall into PX grade and thus be severely penalised. For example: 16kg YM = $17.90, 16.5kg YX = $17.81. This gives a disadvantage of minus 9c per head for 0.5kg extra carcass weight. Similarly: 16kg PM = $15.82, 16.5kg PX = $11.37. This gives a disadvantage of minus $4.45 per head for 0.5kg extra carcass weight. The conclusion which can be drawn is that lambs should be killed in the 13 to 16kg carcass weight range. Lambs should not be taken over 16kg carcass weight unless they will definitely fall into the YX grade. This is risky. At this stage farmers would be wise to kill lambs falling into the M grade, that is 12.5 to 16kg , before they gain weight and move to the X grades. The drive for heavy weight lambs has blown up in our faces. Whether it be by

design or accident there are now a large number of heavy lambs, that is over 16kg carcass weights, on farms. The next question is what does one do with laimbs which are already over I6kg carcass weight, especially those that will grade PX? There are a number of possible options which should be investigated. • Kill them on owners' account in the hope they will realise better returns than schedule; • Pick out the obvious YX lambs and kill and attempt to lean the remainder down to YX; •Kill them for local trade; •For those that have WX contracts take them onto 20kg and make sure they grade; •Sell the obvious PXs store in the hope they will realise better than schedule after cartage and commission •Retain lambs just over 1 6kg carcass weight, that is say 39 to 42kg liveweight, and keep on a restricted diet in an attempt to reduce weights so that they will fall into the M grade. Please note: these notes apply to the schedule of week 1 3 April. More recent schedules may have changed prices.

Will

Wilson, i

Farm Advisor,

Waimarino County