July 8, 2008

 

Difficult year ahead for New Zealand cattle farmers

   
 

New Zealand's cattle farmers are facing a difficult challenge as rising production costs erode export returns.

 

The costs of running a beef farm have increased nearly 10 percent over the past year, according to new figures from the Meat & Wool Economic Service on Monday (July 7, 2008).

 

The biggest cost increases come from fertiliser, fuel, and keeping stock fed in the drought. However, the statistics were taken to the end of March, therefore it did not include recent rises in fertiliser and fuel prices.

 

The cost of running a beef farm has climbed 23 percent in the past five years, Economic Service executive director Rob Davison said.

 

Fertiliser, lime and seeds category surged 30 percent, electricity costs climbed 7 percent while interest rates jumped 9 percent on-year.

 

Local authority rates also went up 6.6 percent, but total increase over the past five years is 33 percent.

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