That was a welcome change to a run of poor-profit years, including a 50-year low in 2007-08, the latest Beef and Lamb New Zealand economic service new season outlook reported.
The increased returns came from a significant lift in international prices for meat and wool, Beef and Lamb economic service executive director Rob Davison said.
At the farm gate, lamb was up 43% and sheep meat up 62%, while wool was up 43% (from the previous year's 100-year low) and beef was up 18%.
For the farming year just started, the outlook was for sheep and beef farm profit before tax to fall 7%, largely because of a stronger exchange rate.
That left gross farm revenue virtually unchanged (up 1.2%), but on-farm expenditure was expected to increase 4.2%, with fertiliser usage up relative to recent years, Mr Davison said.
Total gross revenue for 2011-12 for Otago-Southland was expected to decrease 1.8%.
The decrease largely came from a slightly stronger exchange rate expectation that cut into the lamb price and more than offset the increased lamb production this spring. In addition, more lambs were expected to be held for flock replacement this year.
Despite the decrease in gross farm revenue, on-farm expenditure was expected to be up 2%. The net result was that farm profit before tax dropped back 9% on last year.
The scenario equated to a profit before tax of $150,800 per farm.
Nationally, lamb export receipts for 2011-12 were expected to remain similar to the previous year at $2.9 billion.
Increased lamb shipments (up 4.8%) were offset by the stronger exchange rate. The increased volume of lamb shipped came from an expected improved lamb crop, despite the 2.5% decrease in the ewe flock this year.
Beef export receipts were expected to decrease 2.1% to $2.6 billion, with export volumes up 3.1%, but the price per tonne was tipped to drop 5% because of a stronger New Zealand dollar.
It was estimated wool production would decrease about 1.3% because of smaller sheep numbers. Wool export receipts were tipped to remain similar to the previous year at $718 million.
