Profits for New Zealand sheep and beef farmers will fall by another 30% this season, according to a new report from industry body Beef + Lamb New Zealand (B+LNZ), online publication Agriland reported on October 11.
The New Zealand beef and lamb season forecast for 2023-24 shows global demand for beef and lamb will recover slightly. However, continued increases in agricultural costs are expected to lead to a sharp decline in income for sheep and cattle farmers.
B+LNZ chief economist Andrew Burtt said the country’s farmers face another difficult year: “Agricultural prices are expected to be similar to last season, but rising costs caused by inflation and high interest rates will continue to reduce agricultural profitability.”.
“We forecast farm profitability to fall by 31% in 2023-24, which follows a 32% fall in 2022-23 and means farm profits will more than halve within two years. That’s a 15-year low when adjusted for inflation. “The global outlook for the red meat sector remains fragile.””Burtt emphasized.
New Zealand farmers will also face stiff competition from Australian red meat exports to China. New Zealand exports more than 90% of its meat production, so global economic conditions have a significant impact on prices. A report from B+LNZ says some New Zealand farmers are likely to make no profit next season.
Source: Rossa Primavera
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