5 Oct 2010

Storm losses hit the wool, meat sector

1:47 pm on 5 October 2010

The spring storms that savaged the southern South Island and parts of the North Island two weeks ago are estimated to have cost the wool industry alone more than $8 million in lost income.

Losses to the meat industry will be a lot higher than that.

It'll probably be next month before a definitive figure of lamb losses emerges, when Beef and Lamb New Zealand's Economic Service carries out its annual tailing survey.

But large numbers of ewes have also perished in Southland and South Otago, and in parts of the central and southern North Island.

Wool Services International marketing executive Malcolm Ching says in 350,000 lambs died in Southland, and a total of 350,000-400,000 ewes have been lost in Southland and other regions including parts of the central and southern North Island.

Mr Ching says the figure of $8 million does not include losses to the meat industry, which will be greater.

He says the stormy and unusually wet weather has also disrupted shearing around the country, contributing to the wool supply shortage that's forced the cancellation of some sales this season.

However, Mr Ching says, the supply disruption has helped lift wool prices, with carpet style wool prices, more than 40% higher than a year ago and the coarse cross-bred indicator 25% up since the beginning of the season.

Federated Farmers' meat and fibre chair, Bruce Wills, also says the shortages are likely to push up lamb and wool prices, but will not compensate for the stock losses.

Farmers attend support meetings

Meanwhile, about 200 farmers attended a meeting in Wyndham on Monday night, organised by Federated Farmers as an opportunity for farmers to socialise and offer support.

Other meetings are to held in Otautau on Tuesday night and Balclutha on Wednesday.

The meetings also include representatives from major banks, and veterinarians.