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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news