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Summarised by Centrist
Beef + Lamb New Zealand’s mid-season update forecasts average farm profit will jump to $287,600 in 2025-26, roughly double last year’s level, with the gains expected to ripple well beyond the farm gate.
The report says red meat farmers are on track to generate $8.5 billion on farm this year and spend about $16 million a day on goods and services, much of it in their local communities. Federated Farmers meat and wool chair Richard Dawkins says that means more money for long-delayed essentials such as fencing, weed control, pasture renewal and fertiliser, while many farmers will also use the lift to catch up on repairs and pay down debt.
Beef + Lamb chair Kate Acland says stronger global red meat demand and tighter international supply have materially improved farmgate returns since the group’s September outlook. Dawkins says strong returns across sheep, beef and wool, together with a favourable climate, sensible policies and decent interest rates, have created a combination farmers do not often get all at once.
The caution is that farmers are not getting carried away. Beef + Lamb says geopolitical risks remain a real concern, including US tariffs and conflict in the Middle East. Input costs are still volatile because of global supply chain disruption, fuel availability remains a worry, and softer prices are forecast. China is also still weaker than other markets.
