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.
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.