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

 

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:


Telecoms: Spark Welcomes Spectrum Allocation And Prepares For 5G Rollout Over The Next 12 Months

Spark welcomes spectrum allocation and prepares for 5G rollout over the next 12 months Spark today welcomed the announcement of the direct allocation process of 5G spectrum, with the Company to be offered management rights to 60 MHz of 3.5 GHz ... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Tax Changes Throw Cash Lifeline To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO:

Statistics: Some Indicators Pick Up As New Zealand Moves Out Of Lockdown

New Zealanders moved around more in the main centres and used more fuel and power while weekly exports held up as the country left the COVID-19 level 4 lockdown, Stats NZ said today. COVID-19 data porta l, our new webpage, includes about 40 near-real-time ... More>>

ALSO:



University Of Canterbury: Astronomers Discover The Science Behind Star Bursts That Light Up The Sky

University of Canterbury (UC) astronomers are part of an international team that has revealed how explosions on the surface of a white dwarf star can increase its brightness by thousands or millions of times making it look like a new star. For ... More>>

RNZ: International Passenger Numbers At Auckland Airport Drop 95 Percent

Auckland Airport says international passengers numbers have dropped more than 95 percent in the first 20 days of April over the year earlier. More>>

ALSO: