Sheep and beef farmers across the country have been breathing
a sigh of relief over the past week as Beef and Lamb NZ has
released a positive-look forecast for meat and wool prices.
The mid-season update predicts a strong demand for sheep and
beef products, with the average farm profit expected to rise
by 35% and Southland and Otago farm profits by 12%.
However, Beef and Lamb was also forecasting an increase in
on-farm expenditure, mainly in the form of fertiliser and
repairs and maintenance.
Beef and Lamb Southern South Island economic service manager
Jenny McGimpsey said that after a poor season last year, an
increase in profit was expected.
''The main three areas that are driving the increase are the
sheep meat, lamb and mutton as well, which is supported by an
increase in wool prices and the beef prices are also
Overall, it is good news for Southland sheep and beef
farmers, she said.
The profit increase would also mean farmers would be paying
more tax, but would allow them to re-invest money into their
farming businesses, she said. The season's forecast on the
average lamb price was also looking to increase to $100 per
head, which was up 18% on last year.
Beef and Lamb NZ economic service chief economist Andrew
Burtt said the reduced availability of lamb in New Zealand
and Europe, combined with the strong demand for the product
in Asia and the Middle East, was expected to support the
increase in prices.
The overall auction wool price is also expected to increase
by 13% on the previous year, driven by a significant price
increase for strong wool.
• The Beef and Lamb mid-season update is available at
- by Nicole Sharp