Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Sheep and beef farm profits forecast to increase 35 per cent

30 April 2014

Sheep and beef farm profits forecast to increase 35 per cent

Beef + Lamb New Zealand’s latest forecast, released today, tells a positive story for farmers and the wider industry.

The organisation’s Mid-Season Update predicts better pricing and strong demand for sheepmeat and beef products from key markets.

The report outlined improved product prices which are expected to drive average sheep and beef farm profit up by 35 per cent on the drought-affected level of last season. The Mid-Season Update estimates that farm profit before tax for the 2013-14 season will rise to an average of $113,700 per farm.

B+LNZ Economic Service Chief Economist Andrew Burtt says total gross farm revenue is expected to increase 9.2 per cent to $460,200, reflecting a 12 per cent increase in sheep revenue. Total farm expenditure is estimated to be up 2.8 per cent, to $346,500, on the back of increases in repairs and maintenance expenditures. Interest expenditure dropped by 2.6 per cent, thanks to a slight decrease in farm debt and lower interest rates.

This season’s forecast average lamb price is $100 per head – up 18 per cent on last year, and 2.5 per cent higher than the average for the previous five seasons. “Reduced lamb availability in New Zealand and Europe, combined with strong demand for lamb from Asia and the Middle East, is expected to support lamb prices,” Mr Burtt says.

Approximately 25.6 million lambs were tailed in spring 2013, down 1.9 per cent on the previous year. Breeding ewe numbers remain static reflecting a stabilisation of the national ewe flock.

Mr Burtt says the country’s overall export lamb production to 30 September 2014 is expected to be down 3.5 per cent, to 362,900 tonnes carcase weight. “In 2013-14, export lamb slaughter is expected to decrease 5.3 per cent compared with a high slaughter in 2012-13 which was pushed up by widespread drought. This season’s decline in numbers is expected to be partially offset by a 1.9 per cent estimated rise in the average carcase weight, to 18.3kg, the second highest average carcase weight.”

The season’s total export cattle production is estimated to decrease 1.1 per cent to 573,000 tonnes carcase weight, following last year’s high processing numbers, which were driven by the North Island drought.

“Internationally, the US total cattle herd is around 88 million head – the lowest January inventory since 1951. US exports are expected to drop, by about 8 per cent, while beef imports should increase about 1 per cent,” Mr Burtt says. “Meanwhile, total Chinese beef imports are projected to grow by more than 15 per cent in 2014. Despite this significant demand from China, the US is expected to remain New Zealand’s largest market for beef and veal exports.”

The full report is available on the B+LNZ website at: beeflambnz.com/economic-reports

Regional highlights can be found on pages 21-22 of the report.

Follow the links below to the latest information from B+LNZ Economic Service

Benchmarking interactive tool
http://portal.beeflambnz.com/tools/benchmarking-tool
Export analysis tool
http://portal.beeflambnz.com/tools/export-tool/
Farm performance indicators
http://www.beeflambnz.com/farm-survey
Price trend graphs
http://www.beeflambnz.com/price-trends
Industry production trends
http://www.beeflambnz.com/production-trends

About Beef + Lamb New Zealand:
Beef + Lamb New Zealand Ltd is the farmer-owned industry organisation representing sheep and beef farmers. By Farmers. For Farmers. Beef + Lamb New Zealand Ltd works to support a confident and profitable sheep and beef industry by helping farmers make informed business decisions and promoting their collective interests.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news