Sheep and beef farmers face drop in earnings

New Zealand sheep and beef farmers' earnings may fall 12 per cent this season because of the rising New Zealand dollar and a drop in wool prices.

Farm profits will average $75,900 for the year ending June 30, 2004, said Meat New Zealand.

Even so, after adjusting for inflation, that would be the fourth-highest annual profit in 23 years, helped by higher prices for sheep meat and beef.