New Zealand farm profits could fall by a third

Published 2023년 3월 16일

Tridge summary

A report by Beef and Lamb New Zealand anticipates a 31% drop in profit for New Zealand livestock farms in the 2022/23 season, down to 146,300 New Zealand dollars, due to high inflation and falling livestock prices. This figure is below the average of the past five years. The rise in costs, especially for agricultural inputs, and global supply issues are contributing factors. Farmers are coping by delaying repairs and reducing fertilizer use, but these cost-cutting measures are not enough to offset the inflationary pressures. Additionally, the global beef market is tightening due to a case of bovine spongiform encephalopathy in Brazil. The report also highlights the impact of cyclones and droughts on two-thirds of the country's sheep herd and beef cattle.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

High inflation and declining livestock prices could see livestock farm profits in New Zealand fall by almost a third, according to a new report from Beef and Lamb New Zealand, Agriland reported March 15. The document says that the farm's profit in the 2022/23 season is estimated at 146,300 New Zealand dollars (€84,641, or 6.85 million rubles). This is a 31% decrease compared to the 2021/22 season and below the average for the past five years. Beef and Lamb New Zealand Chief Economist Andrew Burtt said that inflationary pressures are causing farm costs to skyrocket, "undermining the benefits of what is historically still fairly good farm returns." He stressed that global demand for mutton and beef is expected to recover, while supply levels remain tight. Burtt said a recent case of bovine spongiform encephalopathy (BSE) in Brazil has led to a tightening in the global beef market. The report notes that falling farm prices have forced New Zealand farmers to cut costs by ...

Source: Milknews