The forecast lamb price is up 18% on last year. Photo
Approved product prices are expected to drive average
sheep and beef farm profits up by 35% on last season's
Beef and Lamb New Zealand's mid-season update, released
yesterday, estimated farm profits before tax for the 2013-14
season would increase to an average of $113,700 per farm.
Total gross farm revenue was expected to increase 9.2% to
$460,200, reflecting a 12% increase in sheep revenue, Beef
and Lamb New Zealand economic service chief economist Andrew
Total farm expenditure was estimated to be up 2.8% to
$346,500, on the back of increased repair and maintenance
Interest expenditure dropped by 2.6%, thanks to a slight
decrease in farm debt and lower interest rates.
This season's forecast average lamb price was $100 per head,
up 18% on last year and 2.5% 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,
was expected to support lamb prices, Mr Burtt said.
In Otago-Southland, gross farm revenue was expected to
increase to $449,100 for 2013-14, up 12% on the previous
Sheep revenue increases 14% to $288,100 due to a lift in
prime and store lamb prices; wool revenue increases to
$66,000, up 11% on 2012-13 due to a lift in sale price,
coupled with some sales of existing stocks to lift volumes;
while the cattle account is up 2% to $46,900.
Dairy support was down on the 2008-09 peak, when revenue from
dairy grazing contributed 5.5% of gross farm revenue.
Farm profit before tax was expected to increase to $131,400
for 2013-14, up 33% on 2012-13.