Tuesday, 24 February 2026 07:55

Red Meat Sector Experiences Record Returns in 2025/26 Season

Written by Sudesh Kissun

font size decrease font size increase font size
Print
Email

Federated Farmers meat and wool industry chair Richard Dawkins.

The red meat sector finds itself in "a very rare set of circumstances", says Federated Farmers meat and wool industry 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.

"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."

More like this

Federated Farmers Praises Labour's Emissions Tax Backdown

For the first time in a quarter of a century, Federated Farmers has something positive to say about the Labour Party’s climate change policy leading into a general election.

Wool Impact and Campaign for Wool NZ Merge to Form Collective

Will a stronger, more coordinated voice help rebuild confidence and improve returns in the wool sector?

NZ Pest Crisis Costs Farmers $466M a Year — Survey

New Zealand's pest problem has reached crisis point, according to Federated Farmers' second National Pests Survey, which shows farmers are spending more money and effort on control — yet pest numbers keep climbing faster than they were two years ago.

Editorial: Hunting Policy Misses The Mark

OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.

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.

Featured

Susan O'Regan Appointed New Chair of QEII National Trust

Minister of Conservation Hon Tama Potaka has appointed Susan O'Regan as Chair of the Queen Elizabeth II National Trust (QEII) for a three-year term.

Red Meat Farmers Welcome Labour's Emissions Pricing Pledge

Red meat farmers are welcoming Labour’s plan to review the Emissions Trading Scheme and not to campaign on pricing agricultural emissions.

NZKGI Responds to Migrant Worker Exploitation Reports

Where any worker in the kiwifruit industry is mistreated, we expect the authorities to take action.

Arable ROI Crisis: Why Canterbury Farmers Are Moving On

Mid Canterbury Federated Farmers arable chair, Bevan Lill, said Beef + Lamb NZ data indicated that for the last six years, the average arable return on investment was about 0.8% while inflation ran about 4% - so the average arable farm was going backwards at about 3% a year.

Seed Companies Say They See the Arable Exodus Coming

Seed and grain companies share the concerns of arable farmers about the viability of their sector, says Seed and Grain New Zealand chief executive Dr Sarah Clark.

NZIF Warns Rushed ETS Changes Could Hurt Forest Investment

The New Zealand Institute of Forestry (NZIF) says unnecessary changes to New Zealand’s Emissions Trading Scheme (NZ ETS) will seriously erode investor confidence and result in significant reductions in forest planting rates.