The Outlook For Global Sheepmeat And Beef Trade Is Improving But Beef + Lamb New Zealand Expects Farmer Profitability To Fall Sharply

The outlook for global sheepmeat and beef trade is improving but Beef + Lamb New Zealand expects farmer profitability to fall sharply due to reduced livestock prices and continued high inflation. The Beef + Lamb New Zealand Mid-Season Update shows farm profit before tax is estimated at $146,300, a 31 percent decrease from 2021-22 and below the average for the past five years. B+LNZ Chief Economist Andrew Burtt says inflationary pressure is causing on-farm costs to increase sharply and eroding the benefit of pretty good farm-gate returns. He says the forecast uptick in global sheepmeat and beef trade in key markets means demand is projected to recover, while global supply levels remain tight. This recovery follows a stark drop in demand for sheepmeat at the start of the season before China relaxed its Zero-COVID policy.