Meat & Livestock News

East Coast Farmers in New Zealand Face Uncertain Future Amid Weather Challenges and Market Concerns

Farmers on New Zealand’s East Coast are facing a period of uncertainty and challenge following a series of weather-related setbacks. Gisborne-based AgFirst consultant Peter Andrew reported that many farmers, having recently repaired infrastructure damaged by Cyclone Gabrielle and subsequent rainstorms, are now dealing with further destruction caused by recent rainfall.

Andrew explained that farmers had just finished clearing their tracks when they were again damaged by more slips. Gisborne has experienced a significant amount of rain since January, receiving approximately 2.5 metres this year. While most farms have regained access to their properties, at least ten bridges remain unrepaired, posing ongoing challenges.

Despite these difficulties, Andrew noted the resilience of farmers, with some making good progress while others continue to struggle.

In Hawke’s Bay, farmers are concerned about the upcoming 12 months. Lochie MacGillivray of AgFirst mentioned that while there is a sense of increased confidence with the new government, farmers realistically do not expect a change in the country’s fundamental direction.

The primary concern is the state of the lamb market, with falling prices and a global oversupply, partly due to Australia liquidating its sheep flock. MacGillivray compared the situation to the 2016/17 period but anticipates it could worsen, citing predictions of 2024 being a particularly challenging year due to low stock prices, high-interest rates, inflation, and uncertainty about the Chinese market.

On the farms, however, conditions are not as dire. The rain that affected Tairawhiti did not impact Hawke’s Bay as severely, but cooler, overcast days have hindered stock growth. Lamb and cattle require sun for optimal growth, and while lambing has been generally successful with high survival rates, concerns about flystrike are rising due to increasing humidity and wet grass.

Farmers have been actively repairing damage from Cyclone Gabrielle, with some farms now fully operational. MacGillivray highlighted the extensive efforts of one farmer who spent five hundred hours on digger work for repairs. The cost of damage for the worst-hit farms is estimated at $1,000 per hectare, meaning a 300ha farm could face a $300,000 bill, though other farms have suffered minimal damage.

Overall, there is a sense of apprehension among East Coast farmers as they await what 2024 will bring amidst recovering from past damages and facing market uncertainties.