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

 


New Season Looking Positive for Sheep And Beef Farmers

New Season Looking Positive for Sheep And Beef Farmers


New Zealand sheep and beef farmers can look forward to a positive 2014-15 season, according to analysis released by Beef + Lamb New Zealand’s (B+LNZ) Economic Service today.

B+LNZ Economic Service executive director, Rob Davison says the season’s favourable climatic conditions so far, expected higher product prices and a more export-friendly exchange rate collectively translate to improved returns for the country’s sheep and beef farmers.

New Season Outlook 2014-15 predicts the average sheep and beef farm profit before tax will increase 8.0 per cent on last season, to $110,800.

Mr Davison says a 6.3 per cent lift in sheep revenue is largely responsible for the increase, while total farm expenditure should only rise by an average of 2.3 per cent.

The international economy plays a significant role, with global growth expected to reach 3.4 per cent this year and 4.0 per cent during 2015. “While New Zealand is now in its fourth year of expansion, prospects in other developed economies are gradually improving,” Mr Davison says.

The three major currencies in which New Zealand agricultural products are mostly traded – the US dollar, Euro and British pound – are all expected to strengthen against the New Zealand dollar over the next 12 months.

Farm-gate prices for lamb and mutton are forecast to average $103 and $79 per head, respectively, up $3 on 2013-14 provisional prices.

Mr Davison says that, while total sheep numbers are back on last season, the number of lambs tailed this spring is estimated to be similar to last spring – at 25.6 million head – reflecting kind climatic conditions. “However, export lamb production is forecast to decrease by 2.6 per cent, as farmers opt to hold onto more ewe hoggets as replacement breeding stock which is a positive indicator for the sector.”

Meanwhile, export mutton processing is forecast to drop by 21 per cent over the coming year – a correction on last year, when dry conditions in the north and dairy expansion in the south saw larger numbers of ewes processed than usual.

Bull, steer and heifer farm-gate prices per kilogram are forecast to increase 8.5 per cent. Overall, the value of beef and veal meat exports is expected to increase by 5.5 per cent on last season. This reflects total volumes dropping 3.6 per cent, while average values rise 9.4 per cent, on the back of expected higher international prices and a more favourable exchange rate.

New Season Outlook 2014-15 (PDF, 1MB)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news