NZ farmers set for best year in decade

4 May 2000



NZ farmers set for best year in decade

NEW Zealand farmers look set for one of their most profitable years for a decade, reports the .

A good, wet southern summer and autumn, a low New Zealand Dollar and a lift in offshore markets have helped lift revenue forecasts for sheep and beef farms to reach NZ$194,500 (61,022), the highest for 10 years.

After costs, the average New Zealand beef and sheep farmer should have a pre-tax profit of NZ$45,200, the second highest for a decade.

Lamb cuts to Europe are up by 15 to 18% compared to last year, when converted to New Zealand Dollars, while US beef prices in New Zealand Dollars are up 20-26%.

The FTreports that fine wool prices are up sharply but returns for coarser wools are little changed from last year.

While it is expected that sheep numbers will remain static at 46 million for the year to 31 July, better grass growth and advanced breeding techniques will allow farmers to get more meat from the same sized animals.

• Financial Times, 04/05/2000, page 38