New Zealand farm profits could drop by over 30 percent
Frozen Bone-In Beef
Lamb
Meat
New Zealand
Published Mar 15, 2023
Tridge summary
High inflation and reduced livestock prices could result in profits on beef and sheep farms in New Zealand falling by over 30%, a report said.
Original content
High inflation and reduced livestock prices could result in profits on beef and sheep farms in New Zealand falling by almost a third, according to a new report. The Beef and Lamb New Zealand Mid-Season Update 2022-23 says that farm profit before tax is estimated at NZ$146,300 (€84,641). This is a 31% decrease from 2021-22 and below the average for the past five years. Beef and Lamb New Zealand chief economist, Andrew Burtt said that inflationary pressure is causing on-farm costs to increase sharply, “eroding the benefit of what are still historically pretty good farmgate returns”. He said that a recovery is expected in global demand for sheepmeat and beef, while supply levels remain tight. This follows a stark drop in demand for sheepmeat at the start of the season before China relaxed its zero Covid-19 policy. “As 85% of New Zealand’s mutton exports are to China, this impacted export receipts, which were one third lower compared to the same period last season,” Burtt said. ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.