Farm Profitability to Drop This Season08 March 2013
NEW ZEALAND – Predictions put 2012/13 farm profits 54 per cent lower on last season, according to Beef and Lamb NZ’s Economic Service.
Although headed by lower lamb prices being hit by limited buying across a debt-riddled Europe, cattle returns are also expected to decrease.
Beef and Lamb Economic Service Executive, Rob Davison has said that the outlook for cattle is uncertain due to the US situation where fewer numbers will be seen through the slaughterhouses this year.
"Three years of drought in the US has reduced the country's total cattle numbers to 89.3m head – the lowest tally since 1952. Significantly, the beef cow herd is the smallest it has been in decades and it will take years to rebuild breeding numbers."
Average gross revenue is estimated to be $409,300 – down 19 per cent from last season. Total farm expenditure is estimated to fall only 3.6 per cent, to $336,300.
TheCattleSite News Desk