On-farm costs pressuring New Zealand beef margins
Published Oct 2, 2024
Tridge summary
The USDA GAIN report highlights the challenges facing New Zealand's sheep and beef farmers due to rising inflation and low farm gate prices. According to Beef+Lamb New Zealand (BLNZ), on-farm inflation has significantly impacted profitability, with farm input prices increasing by 30.8% over the last five years. While interest rate increases have been a major factor in recent years, the next biggest contributor is expected to be an 11% rise in insurance premiums in Q1 2024, attributed to Cyclone Gabrielle in 2023.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
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 ...
Source: The Cattle Site
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