TL;DR: New Zealand’s sheep farmers face challenges from high costs, slow Chinese market recovery, and Australian competition, impacting profits and efficiency.
Sheep farmers in New Zealand are hitting hard times. High costs, slow markets, and competition are big hurdles.
Main Challenges
The biggest issues come from high farming costs and slow sales to China. Australian lamb is also flooding the market, making things even harder.
Beef + Lamb New Zealand’s Update
A recent report paints a grim picture for the upcoming financial year. Things have gotten worse since last October, mainly because of issues in China and Australia.
Farmers expected better prices because of a good lamb crop last spring. But, high costs and lower prices per head are cutting deep into profits. Profits could drop to the lowest since the 1980s and the Global Financial Crisis.
Farmers Feeling the Pinch
Sam McIvor from Beef + Lamb NZ says farmers are trying everything to cut costs. Some farm types are more affected than others because they rely a lot on sheep sales. The East Coast, hit by Cyclone Gabrielle and bad weather, could see the lowest profits.
Some Hope Remains
Not everything is bleak. Beef prices are doing better, thanks to demand from the US. Lamb is also in demand in Europe and the US, and that might help for the rest of the season.
