Beef & Lamb NZ new season outlook positive for farmers

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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.


By Sally Rae / Otago Daily Times
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