Key highlights from the Ministry of Agriculture and Forestry's Pastoral Monitoring Report 2008. General * The 2007/08 year was dominated by drought and relatively poor prices, apart from the significantly improved dairy payout; and supplementary feed reserves were lower than usual and the prices of hay, silage and grain increased steadily. Dairy * Despite the drought, farm profit before tax on the national dairy model rose 449% to $384 000 in 2007/08; on a record $7.90 payout but with dairy farm working expenses up by 15-30%. Prices are expected to fall significantly in 2008/09 Sheep and beef * on average, sheep and beef farm net cash income fell 2% to $288 000 and would have been lower without $15 000 released from destocking 200 stock units (mainly sheep); They were unable to afford the increasingly expensive feed in the drought, so had to quit stock onto an oversupplied store market -- severely depressing prices. Deer * Deer farmers' profitability improved in 2007/08 with higher prices for venison despite velvet prices falling by around a quarter compared with 2006/07; "One of the biggest challenges for farmers in the coming year will be recovering from drought as well as managing the potential increased expenditure associated with rising prices for core products and services," Mr Stocks said. "Due to the economic downturn, price expectations for New Zealand's agricultural commodities in export markets are generally lower than initially anticipated.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.