Red meat’s future rosy
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.