Red meat’s fu­ture rosy

Matamata Chronicle - - Rural Delivery -

The plan­ets align­ing for red meat farm­ers to put decades of low prof­its and lack of rein­vest­ment be­hind them.

New Zealand’s red meat sec­tor shows signs of re­gain­ing a star­ring role in the econ­omy, in a sur­vey by the ANZ bank.

Over the past two decades red meat farm­ers haven’t seen the same gains as dairy farm­ers be­cause of de­creas­ing real prices, ris­ing costs, lack of rein­vest­ment and an in­dus­try struc­ture that dis­cour­aged col­lab­o­ra­tion and mak­ing the most of economies of scale.

The bank sur­vey of 779 farm­ers found most were plan­ning to in­vest in their farms to in­crease pro­duc­tiv­ity and take ad­van­tage of ris­ing global de­mand for pro­tein.

ANZ com­mer­cial and agri­cul­ture man­ag­ing direc­tor Gra­ham Tur­ley said red meat was likely to have faster pro­duc­tiv­ity gains than dairy in the fu­ture.

The top 20 per cent of farm­ers were pro­duc­ing about four times more than the av­er­age, ir­re­spec­tive of land class and lo­ca­tion.

The sur­vey was part of ANZ’s sup­port for Beef+ Lamb New Zealand’s Red Meat Profit ini­tia­tive. Key find­ings of the sur­vey: 65 per cent of red- meat farm­ers plan to lift pro­duc­tion in next 3-5 years.

84 per cent plan to in­vest in pas­ture.

69 per cent plan to in­vest in an­i­mal ge­net­ics.

53 per cent see ben­e­fit in get­ting ex­pert help to im­prove pro­duc­tiv­ity.

63 per cent say suc­ces­sion is about pass­ing the farm to fam­ily or whanau.

34 per cent say the buyer’s abil­ity to fi­nance a farm is the key bar­rier to suc­ces­sion.

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