Red meat earning $7.6 billion a year

The growth of on-farm sheep-farming production matches dairying, but Deloitte partner Alasdair MacLeod says there is still room for improvement, especially among those outside the top 20% of performing farmers.

Mr MacLeod, an author of the red meat strategy, said red meat earned $7.6 billion a year in exports, with related products earning a further $300 million.

The figures compared favourably with dairying, which earned $10 billion in exports.

The industries were both economically very significant to the New Zealand economy, but Mr MacLeod said the publicity dairying attracted gave the impression red meat was a sunset industry and of limited importance.

Three-quarters of red meat export income came from meat products compared to milk and powder which earned 57% of dairy exports, indicating that meat carried a disproportionate portion of sheep revenue and profit.

Since 2005, sheep revenue has grown only 17% compared with 76% for dairying.

However, sheep-farming efficiency has outstripped dairying.

From 1998 to 2005, lamb production per ewe has increased 31% and milk solids per cow 26%.

But, sheep were being squeezed by more viable land use options: dairying on the intensive downlands and forestry on the hill country.

Mr MacLeod said the red meat sector needed to improve to make it more competitive.