On-farm costs pressuring New Zealand beef margins
Prices increased 30.8% over the last five years
2 October 2024
1 minute read
By: On-farm inflation in costs and low farm gate prices in New Zealand are putting pressure on sheep and beef farm margins and profitability, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
Industry organization Beef+Lamb (BLNZ) recently reported that farm inflation continues to rise, albeit slower than the outgoing year. On-farm inflation has been significant for sheep and beef farmers in recent seasons and detrimental to farm profitability.
Prices for farm inputs increased 30.8% over the last five years. In 2023, interest rate increases had the biggest effect on on-farm inflation for all farming operations. However, recent industry reports forecast insurance premiums will have a more substantial impact, which in the first quarter of 2024 has risen 11% on the same time last year following the impacts of Cyclone Gabrielle early in 2023.
