On-farm costs pressuring New Zealand beef margins

On-farm inflation in costs and low farm gate prices in New Zealand are putting pressure on sheep and beef farm margins and profitability, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. Industry organization Beef+Lamb (BLNZ) recently reported that farm inflation continues to rise, albeit slower than the outgoing year. On-farm inflation has been significant for sheep and beef farmers in recent seasons and detrimental to farm profitability. Prices for farm inputs increased 30.8% over the last five years. In 2023, interest rate increases had the biggest effect on on-farm inflation for all farming ...