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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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