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Beef + Lamb New Zealand’s chief economist, Andrew Burt.
Sheep and beef farmers are in for one of their best ever seasonal pay cheques thanks to a big rise in lamb prices.
Beef + Lamb New Zealand’s chief economist, Andrew Burt, is predicting that, on average, farm profit before tax for the 2017-18 season will be $126,300 – up 39% on the previous season.
He says revenue from sheep, a major driver of the improved farm profit before tax, is expected to be up 22% and contribute 47% of all sheep and beef farm revenue. This rise in average farm income is also due to both lamb and beef export prices together breaking the $3 billion mark for the first time. Beef exports, says Burt, will be $3.2b while lamb exports will surpass $3b for the first time.
He says sheep and beef prices have stayed strong despite increases in the number of sheep and cattle processed so far this season. Burt says this shows that international meat markets have been strong.
“However, improved pasture availability and tighter remaining livestock availability will support prices for the remainder of the season. Strong wool continues to perform poorly while fine wool has improved,” he says.
“The fast start to the season has been a significant feature of the production year so far. For the December 2017 quarter, the numbers of lambs, sheep and cattle processed were all up, leaving fewer available for January to September than in the 2016-17 season.”
Burt says the average farmgate price for lambs has been revised upwards to 661 cents/kg or $122 per head – up 15% on last season – due to the higher proportion processed earlier in the season at good prices. The forecast at the start of the season was 555 cents/kg.
“Total mutton receipts are also forecast to be up strongly – by 11% to $602m,” he adds. “A 24% increase in the average value per tonne to $6500 more than offsets the forecast 7.3% drop in mutton export volume.”
Burt says tight sheepmeat export supplies from NZ and Australia are driving the strong export receipts because together the two countries account for 90% of international sheepmeat trade, excluding intra-European Union trade.
Recent widespread autumn rain will have triggered the germination of subterranean clover seeds, and the resulting seedlings should be allowed to reach the 3–4 trifoliate leaf stage before grazing, says Beef+Lamb NZ.
A hub farm in each of Beef + Lamb NZ’s seven regions and more focus groups are being rolled out for the red meat sector this year.
The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.
Progeny testing at Pāmu’s Kepler farm in Southland as part of Beef + Lamb New Zealand’s Informing New Zealand Beef programme is showing that the benefits of hybrid vigour could have a massive impact on the future of beef breeding.
Beef + Lamb New Zealand (B+LNZ) has reiterated calls for New Zealand to revise its methane targets after the Government's "disappointing" announcement of its revised Nationally Determined Contribution (NDC).
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
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