Covid-19 uncertainty reinforces the need for stable and predictable domestic regulation, to avoid putting pressure on the red meat sector whose exports are critical to the economy, Beef + Lamb New Zealand chief economist Andrew Burtt says.
B+LNZ’s new season outlook, released yesterday, showed the forecast for global sheepmeat and beef demand was positive for the 2021-22 season, supported by solid market fundamentals, strong demand and tight supply.
It forecast average farm profit before tax to lift 9 per cent, reflecting a 4 per cent lift in gross farm revenue and increasing sheep revenue, including a modest lift in wool prices.
However, the forecast for a stronger New Zealand dollar would offset some of the buoyancy and limit increases in farmgate prices.
B+LNZ forecast New Zealand’s receipts from exporting red meat would be about $8 billion, slightly down on 2020-21.
While lamb export receipts were forecast to increase by 2.2 per cent on 2020-21, beef and veal were forecast to decline by 7 per cent driven by a decline in production and the adverse impact of the high NZD on export values.
China remained a critical driver of red meat export performance in 2021-22.
Read full article Share on twitter