Profit drop for sheep and beef farmers could be ‘last straw’

Federated Farmers Gisborne-Wairoa provincial president Hunaara Waerehu

Predictions that sheep and beef profit margins could fall a further 30 percent this season could be the “straw that breaks the camel’s back” for some Tairāwhiti farmers, says Federated Farmers provincial president Hunaara Waerehu.

Beef + Lamb New Zealand’s New Season Outlook 2023-24 indicates such a fall nationally.

“While the outlook is for global sheepmeat and beef demand to recover slightly, ongoing increases in farm costs are expected to reduce sheep and beef farmers’ incomes sharply for the second year in a row,” said B+LNZ’s chief economist Andrew Burtt.

Mr Waerehu said the prediction came as no surprise.

“Ultimately this will be felt across the nation, and for regions like Tairāwhiti and Hawke’s Bay that are still recovering from the effects of Cyclone Hale and Cyclone Gabrielle, it will have a huge impact for farms, whānau, and local communities,” he said. “. . . and for some farming whānau, El Nino and further profit losses may well end up being the straw that breaks the camel’s back.”

Mr Waerehu said farmers had been under pressure for the past two years or so, compounded by adverse weather, low lamb prices, consistently low wool prices, and low confidence within the primary sector.

“A survey conducted by Federated Farmers this year on farmer confidence is proof of a constrained industry.

“All New Zealanders are facing high cost of living, and that cannot be any more true than for farmers and growers who face high costs but low revenues, leading to profit losses and the dwindling of economic growth within our regions.

“Tairāwhiti and Te Wairoa depend on a good and steady stream of revenue from the farming sector to feed our whānau and our tamariki, so its impact will be felt across our rohe,” Mr Waerehu said.

Commenting on regulation and government policy, he said providing confidence was key for a healthy primary sector.

“With the election coming to a close this weekend, we want whoever is in Government next week to provide that confidence and assurance to farmers by working collaboratively with the industry and to ultimately listen to our farmers and our regions, and take on their input and their thoughts in the drafting of new Government policy,” he said.

“A lot of good things can come out of a strong mana-enhancing relationship between farmers and growers, industry, regions, and central government.

“All we want is space to breathe and to be heard.”

The B+LNZ report predicts “another tough year for farmers”.

A story on the report features in today’s Focus on the Land.