Monday, 21 July 2014 14:48

Sheep and beef farmers regain mojo

Written by 

THE RED meat sector is showing signs of putting decades of low profits and lack of reinvestment behind it.

According to the just-released ANZ privately owned business barometer survey, beef and sheep farmers are regaining a starring role in the New Zealand economy.

Over the past two decades red meat farmers have not enjoyed the same stellar gains as dairy farmers due to decreasing real prices, increasing costs, lack of reinvestment and an industry structure that did not encourage collaboration or economies of scale, it says.

The ANZ survey of 779 farmers, including 374 red meat farmers and discussion groups found that most participants were planning investment in their farms to increase productivity and take advantage of rising global demand for protein.

"The survey found the sector was confident that conditions were right to regain some of the lost momentum and play a bigger role in the New Zealand economy," says Graham Turley, managing director commercial & agri for ANZ Bank NZ.

"Farmers we spoke to had active strategies in place to take advantage of rising global demand for protein, and advances in agronomy and genetics to increase production.
"While structural issues within the industry remain unresolved, many farmers have an expectation that solutions are emerging that will lead to better integrated supply chains."

The report says 65% of red meat farmers plan to increase production in next 3-5 years; of these 84% plan to invest in pasture and 69% in animal genetics. About 53% see benefit in getting expert help in improving farm.

More like this

Layered Plan Needed To Fight BVD

Bovine Viral Diarrhoea (BVD) is sometimes viewed as a dairy industry issue, but the reality is that the disease can have serious consequences for beef breeding herds as well.

Farm Smarter, Not Harder

New research suggests the ag sector can unlock a $2.9 billion increase in profitability, not by farmers and growing more, but by making their farming systems simpler.

Featured

Editorial: The Value of Credibility

OPINION: In politics, credibility is and should be big. It must surely rank higher than charisma, which is quite trite and superficial. Yet, voters nowadays are often wooed and influenced by how someone looks or talks at a superficial level. TV plays a huge role in this.

Kaikōura Families Get School Run Lifeline After Storm

Kaikōura families affected by July's severe storm have found a practical solution to a problem that's kept some children away from regular schooling for weeks: a washed-out section of Inland Kaikōura Road, which has stopped the local school bus from running its usual route.

National

Machinery & Products

» Latest Print Issues Online

The Hound

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…

UK Warning

OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter