Higher Red Meat Returns Boost Farm Resilience in NZ
Red meat farmers are using higher farmgate returns to make their farms more resilient, says Federated Farmers meat and wool industry group chair Richard Dawkins.
He describes the mood as "overwhelmingly positive".
"We're seeing strong returns across sheep, beef and even wool, which is a welcome change," Dawkins told Rural News.
"Combined with easing interest rates, good feed conditions and a more supportive policy environment, it's a very rare set of circumstances for the sector to be operating in."
NZ beef prices are well on course to post a season average record.
BNZ senior economist Doug Steel says their current forecast for the 2025/26 season is for average prices to be around 23% higher than the previous season.
This follows a couple of tougher seasons in 2022/23 and 2023/24.
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"On an inflation adjusted basis, this season's average beef price will be the highest since at least 1991," Steel says.
Beef farmers are certainly seeing that strength on the ground.
According to Dawkins, in some cases, store cattle are selling for more than what prime stock were worth not long ago, which shows just how quickly the market has turned.
The past few seasons have been difficult for red meat farmers. Dawkins says the turnaround this season comes as a real relief.
"Many farmers are using the lift to pay down short term debt and catch up on deferred maintenance.
"But it also gives people hope that, with the outlook looking solid, they may finally be able to reinvest back into their farms and businesses."
Dawkins expects this season to be a profitable one for many red meat farmers.
"That said, every farm business faces its own pressures, whether that's weather events, high input costs or succession challenges.
"So, while the overall mood is very positive, we should remain mindful that not everyone will be in the same position."
