Deer Industry News #36 June 2009 - Deer Industry New Zealand

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general newsEnterprisePurchase weaner deer, peak seasonfinishing high scheduleSummer lamb tradingPurchase weaner deer, finishing (aboveaverage)Terminal Sire ( Elk wapiti) Breeding andheavy weight early finishingPurchase weaner deer, finishing, ( aboveaverage) with conversion costsPurchase weaner deer, peak seasonfinishing high weaner priceVelvet herd, red deer (industry averageproduction) $72/kg averageTerminal Sire crossbreeding & early finishingwith conversion costsSouthland dairy (established) (2008/09)Breeding Red hinds, and finishing progenyBreeding Red Hinds, finishing withconversion costsBreeding Red Hinds, selling weanersVelvet herd, red deer (industry averageproduction) @ $61.50/kg averageSouthland dairy, with conversionBreeding ewes [140 percent, 50 percenthogget mating]Breeding Red Hinds, selling weaners withconversion costsDairy cows, winter at 14 kg/$26Bull beef, rearingDairy heifer grazingBreeding ewes [135 percent, no hoggetmating]Hogget grazingBull beef, 100kg purchaseBreeding ewes, store [135 percent, nohogget mating]Breeding cow [calving year 2, sell weaners]Winter lamb tradingBreeding cow, finishingAutumn-purchase steer calvesCents/kg/DM consumed0 5 10 15 20 25 30Table 1: Gross margin analysis based on cents/kg dry matter consumedEnterprisec/kg DMconsumedPurchase weaner deer, peak season finishing25.2(above average) @ 9.00/kg schedule and $5.20kgentry weaner priceSummer lamb trading 21.6Purchase weaner deer, finishing (above average)19.6@ 8.50/kg scheduleTerminal sire (Elk/Wapiti) breeding and heavy18.8weight early finishingPurchase weaner deer, finishing, ( above17.8average) with conversion costsPurchase weaner deer, peak season finishing17.5(above average) @ 9.00/kg schedule and $6.00kgentry weaner priceVelvet herd, Red deer (industry average17.1production)$72/kg averageTerminal sire crossbreeding & early finishing16.8with conversionSouthland dairy (established) (2008/09) 15.0Breeding Red hinds, and finishing progeny 14.4Breeding Red hinds, finishing with conversion12.9costsBreeding Red hinds, selling weaners 12.6Velvet herd, Red deer (industry average12.1production) @ $61.50/kg averageSouthland dairy, with conversion 11.9Breeding ewes [140 percent, 50 percent hogget mating] 10.9Breeding Red hinds, selling weaners with10.5conversion costsDairy cows, winter at 14 kg/$26 10.5Bull beef, rearing 9.9Dairy heifer grazing 9.9Breeding ewes [135 percent, no hogget mating] 9.8Hogget grazing 9.4Bull beef, 100kg purchase 9.0Breeding ewes, store [135 percent, no hogget mating] 8.4Breeding cow [calving year 2, sell weaners] 7.6Winter lamb trading 6.5Breeding cow, finishing 6.4Autumn-purchase steer calves 4.9About the analysisGraham Butcher’s detailed gross margin analysis of sheep, beef, dairyand deer enterprises presents a return based on cents per kilogramof dry matter consumed, an accepted practice for comparing landuses. While it is a relative rather than absolute approach – individualfarms’ costs will differ – it is nonetheless a good guide for profit.Basing his assumptions on standard New Zealand farm modelsusing Farmax and StockPol, the analysis presents relative profitobjectively, comparing only the direct costs from each of thedifferent production systems. Income is based on current schedules.Costs of management, feeding and animal health that are inherentlythe same are not included in the calculation.This takes into account the current cost of direct expenses on stock,feed, animal health and management, and the capital costs ofimprovements specific to the production system, but not farm loansor drawings. It also gives profits from finishing and from purchasingdeer with no conversion costs, then compares that with conversionfactored in.All of the comparisons are regionally based to ensure benchmarkingis valid, but the conclusions from this Southland analysis can beapplied across New Zealand farms in general.The analysis is a snapshot based on current returns and expenses, butfarmers also need to examine long-term trends and market volatility.Schedule venison prices received by farmers in this gross marginanalysis are based on an $8.50 AP grade seasonal average forfinishing operations. A $9.00 seasonal average at 54kg averagecarcass weight gives a finishing gross margin high at 25.2.cents/kgDM.Details of the various enterprise analyses will be featured in theAugust Deer Industry News.32Deer Industry News
July technical conference draws top expertise“The conference offers a very strong focus on directlyimproving productivity through communicating practicalinformation, and also will discuss topical issues like NAITand the review of Pest Management Strategies. For the firsttime, this conference which previously has been aimedat vets, has taken the initiative of getting all stakeholderstogether.”He says that previously, deer research groups held their ownindependent fora but this year the Deer Branch of the NewZealand Veterinary Association has drawn them all together.“As a result, over just three days, in one place, the conferencewill span a full range of industry issues and feature some 40expert speakers.”Wider industry issues covered will include technicalreview, focus farms, productivity strategy, emissionstrading, NAIT and traceability. At a more detailed levelgeneral newsIf you’re in the deer business and are serious about getting to grips with the latest developments in animal health, don’tmiss the Deer Industry Technical Conference in Christchurch on 13–15 July. That’s the message from conference organiser,Professor Peter Wilson of Massey University. The conference is to be hosted by the Deer Branch of the New ZealandVeterinary Association in collaboration with a wide range of stakeholders.there will be sessions on velvet antler research and issues,leptospirosis, Johne’s disease, tuberculosis, venison supplysystems and genetics and genomics. Of special interestwill be presentations on genetic improvement from DeerImprovement and AgResearch.Professor Wilson cites recent progress with leptospirosiscontrol as an example of real benefits that will becommunicated through the conference. “Improvements ofup to 6.4 kg average bodyweight are possible at 12 months.With some herds that’s a return on investment of more thana thousand percent. We want to get messages like that outto farmers as well as vets so they can make informed bestchoices.”For conference registration contact:■■Professor PR Wilson, IVABS, Massey University,Palmerston North, phone 06 356 9099 ext 7619,fax 06 350 5636, email P.R.Wilson@massey.ac.nzRev-up for North Island Velvet CompetitionNorth Island Velvet Competition organisers are hoping that improving velvet prices will boost entries to this year’s eventin Palmerston North.Although it’s not until late November, Wilton Turner, newchairman of the Competition’s organising committee, iswanting to spark renewed interest in the event. It is followedby the national competition a month later.“Competition over the last few years has reflected the‘sluggish’ velvet market, but with demand for velvet likely toboost prices, farmers already seem to be more enthusiasticabout participating locally,” he said.The committee’s hoping for at least 80 entries this year.Turner has judged in the national competition, and is hopingto incorporate some of the features of that into the NorthIsland event. The committee already has plans in the pipelineto promote the competition more, and also to enhance thefunction that follows, including more entertainment andsome sponsorship.Turner’s been involved in competing and in judgingcompetitions for many years, and sees strong benefits fromgetting involved, and for showcasing the best velvet.“The advantage for stud breeders is showing off theiranimals’ capability, but it’s equally good for commercial deerfarmers to benchmark their efforts with others – looking atwhat the winning velvet has in terms of feeding and geneticsfor example and comparing that to what you’re doing. And ofcourse the prize money is also an incentive.”The biggest for drawcard Turner, though, is the socialnetworking that bringing fellow deer farmers togetherprovides. “It’s a great way of sparking people’s enthusiasm aswell as sharing knowledge.”The awards dinner will be held at the Coachman Hotel inPalmerston North on November 28, with the competitionvelvet displayed at Manawatu Cold Storage, Feilding.Hind SalesDo yourresearch@Email: tradedeer@xtra.co.nzWebsite: www.tradedeer.co.nzIssue No 36 • June 2009 33
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Deer Industry News #36 June 2009 - Deer Industry New Zealand

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