Dear Calf Rearers

It seems unbelievable that spring calving will start next month. I must admit the weeks of March, April and May went by faster than I would have liked and while I have visited 80% of 2012 customers, 100% would've been better. For customers that I deal directly with I have been giving out windstopper jerseys for those who brought 25 ton or more, oilskin vests for 10-24 tonne and beanies 5-9 ton as thank you gifts for your 2012 purchases.

There will be no major changes to the calf meals this year. Last year we visited a high tech factory in France that is dedicated to the production of flavouring palatants. Previously I hadn't been convinced on the worthiness of palatants, however the particular palatant we now use improves glucose uptake as well as sodium and water absorption. These health benefits alone certainly ensure that it pays for itself. The inclusion rate we use means there are 750 000 000 particles of this high intensity sweetener per tonne of calf meal. We got to view excellent research data that is yet to be publicly released and we are still keeping the trade name secret. I am certain we are ahead of the pack in our use and knowledge of this product.

Raw Material prices for our main 4 ingredients

Barley

Late last spring we were offered contracts for this coming season which would have seen us paying $400 per tonne. At the time I was only paying $365 ($355 in November) and couldn't see why prices should rise 10% so I elected not to sign. Prices this year have been $365 in March and $375 in May. Often the price peaks in July/August, however this will depend on grass conditions and prices of alternatives (mainly palm kernel). It was a relatively good harvest and I know there was barley left from the previous season so there shouldn't be any shortage. However what normally happens is once the grain is safely stored grain farmers will resist selling, waiting to see if the prices will rise. Personally I still believe there is more downside risk to the price than upside but we will play the waiting game.

Wheat & Peas

Early spring last year we signed up a third of our 2013 wheat requirements which will cost us $410-$420 spring delivery. However there a considerable amount of feed wheat carried over from 2012 harvest and prices are also expected to fall. With pea contract prices up $100 per tonne, no contracts were signed. I am hopeful we can buy peas cheaper than what the contract price was.

Soya Bean Meal

Last year our target price was $600 per tonne which we got about third at this price and then it rose to over $900. This year my target was $700 and again I have a third at this price and it has since risen to over $800. Market commentary switches from forecasting price rises to price drops quite often and while they had been predicting price's to fall they in fact have gone up.

How this affects the calf meal price

Again this year our price will be reviewed on a month by month basis. For budgeting purposes I am advising customers that our July price will be:

High Octane Aoraki Calf Meal 40 x 25kg $720 + GST and Delivery
Low Protein Aoraki Calf Meal 40 x 25kg $680 + GST and Delivery

However our current price is still $700 for High Octane and $660 for Low Protein and I will try to hold these prices as long as possible. Last year High Octane started at $680 then rose to $714 before dropping in November to $700. I believe in mid-season there is more chance of downward movement of prices than upward.

Housing your calves

What I have noticed during my farm visits is that when it comes to calf housing often there is two different concepts, 1 – Enough housing for all the calves and keep them all inside for 5 – 6 weeks and 2 – Enough housing for calves to stay inside only for a week or two and then reuse the pens. Personally I believe keeping them inside for 5 - 6 weeks is the optimum however it needs to be on an all in - all out basis (so the calves stay in the same pen the whole time and the calves in the neighbouring pen are of similar age) continuous flow should definitely be avoided (where the calves are moved from one pen to another). Using the same pens multiple times often results in a breakdown of calf health especially late in the season. And if you are reusing pens some suggest there are benefits in spelling the pen for 7 days between batches. Allow 1.5 – 2.0 sqm per calf, and the coarser the bedding the drier it will stay (straw has the opposite effect in that it keeps the moisture on the surface).We have reared calves outdoors with a warm draught free hut to sleep in and a small outdoor run. It did depend on the weather on how easy it was. Sunny days the calves would lie outside in the sun and fresh air, however we had to add extra bark with the tractor after heavy rain, though the calves still tended to stay healthy.

Adrian Evans with their pet steer Wrinkles who was raised on Aoraki Calf meal in 2002. Adrian farms in the Ida Valley and rears 400-700 calves per year. Adrian first used Aoraki Calf meal in 1999, since then there has only been one year when Adrian didn't use Aoraki Calf meal and that year calf rearing was disastrous for him. Adrian is adamant he won't make that mistake again.

Got any questions or if you want to know how many tonne of Aoraki Calf Meal you used last year or changed your address then please contact me: This email address is being protected from spambots. You need JavaScript enabled to view it., 027 299 3484, or 0800 632 548.

Yours sincerely

Ken Buckingham