14 | “I don’t think it’s as bad as the 1980s, but if you start talking another two years of it and people start being driven off their farms by finances, then it could be every bit as bad.” The Dooley’s encouraging early numbers The persistent challenge of low sheep meat and wool prices is putting pressure on sheep farmers. Bernadette Cooney High scanning rates in early July bode well for the lambing season this September for Southland sheep and beef farmers Ben and Sarah Dooley, with early lambing mixed-age ewes scanned at 198% and two-tooths at 169%. “That’s a good number for earlies with only five dries, 149 twins, and 46 triplets,” says Ben. “The two tooths had a few more dries than I would have liked, but overall, it’s not too bad.” Ben and Sarah are fourth-generation farmers living on a 260-hectare sheep and beef farm with their two young sons Ted and Elliot, just east of Wyndham. They run a 2300 Romney ewe operation alongside 50 dairy beef herd, plus 20 hectares of swedes. The persistent challenge of low sheep meat and wool prices is putting pressure on sheep farmers. Ben’s wool clip only covered just over half of the shearing costs, and several years of low meat prices, inflationary pressures, and increased compliance costs are taking their toll. Lamb prices were down almost 30 percent from what they were two years ago, while farmers’ costs had increased by 20 to 30 percent. Lambs were worth an average of $134 a head, down from $160 a head two years ago according to Agri HQ’s latest market report. “It’s said you have to spend money to make money, but at the moment the money we are spending isn’t making us any money.” South Island meat processors are paying between $5.80-$6.05/kg. Current prices remain $1/kg behind this time last year, reflecting weaker export returns. Current farmgate prices for mutton are $2.35/ kg behind the five-year average for May. “Average export prices for mutton are the lowest they’ve MEAT & WOOL » Ben and Sarah Dooley been in over five years. Largely driven by the fall in market demand and prices on offer from China,” says Ben. “We relied on them to continue adding a lot of value to our cheaper cuts of lamb, which they did, but of late their economy has taken a dive, and there is a glut of sheep meat in store and a population turning to cheaper protein sources such as chicken and pork.” Recently elected vice chair of the Federated Farmers Meat & Wool Sector for Southland, Ben says UK and US markets are good, but a bounce back in China’s market is hard to predict. “Hopefully beyond next year, things pick up marketwise because we’ve already had two years of basically a loss and there are not many sheep farmers who can sustain that. “I don’t think it’s as bad as the 1980s, but if you start talking another two years of it and people start being driven off their farms by finances, then it could be every bit as bad.” More farmers could drop sheep for cattle and cropping or pine trees. “There may be farmers who will look at land exchange and if you can’t convert to dairy, it might look like pine. But the trouble with that is, it’s a lot upfront and 30 years before you see a return.” Despite the forecasts, Ben remains optimistic. “It’s a glut in the market and a recovery hangover from covid, but I’m hopeful it will improve in time.” Ben Dooley Mark Potter Ph.027 471 3053 potterspraying@gmail.com Know for sure. Know for sure.
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