New Zealand Livestock Farmers Hopeful of Rising Incomes

Prospects are looking up for New Zealand beef and sheep farmers.

Following the effects of the drought last year, New Zealand’s livestock farmers are expected to see a 35 per cent rise in incomes this year.

The Mid-Season Update from Beef and Sheep New Zealand expects farm profit for the 2013-14 season to rise to an average NZ$113,700 per farm.

B+LNZ Economic Service Chief Economist Andrew Burtt said total gross farm revenue is expected to rise by 9.2 per cent to NZ$460,200.

Total farm expenditure is estimated to be up 2.8 per cent, to NZ$346,500, on the back of increases in repairs and maintenance expenditures.

Interest expenditure dropped by 2.6 per cent, thanks to a slight decrease in farm.

The season’s total export cattle production is estimated to fall by 1.1 per cent to 573,000 tonnes carcase weight, following last year’s high processing numbers, which were driven by the North Island drought.

“Internationally, the US total cattle herd is around 88 million head – the lowest January inventory since 1951. US exports are expected to drop, by about 8 per cent, while beef imports should increase about 1 per cent,” Mr Burtt said.

“Meanwhile, total Chinese beef imports are projected to grow by more than 15 per cent in 2014.

“Despite this significant demand from China, the US is expected to remain New Zealand’s largest market for beef and veal exports.”