The Country 06/03/25: Kate Acland talks to Jamie Mackay

The chairwoman of Beef + Lamb New Zealand releases the Mid-Season Update which says New Zealand’s red meat sector is on track for a strong rebound, with farm profitability and export returns expected to rise significantly in the 2024-25 season.

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Episode Transcript

Speaker 1 (00:00):
Is it golden times for the sheep and beef industry?
Because today at Mount Summers you've already heard from Minister
of Agriculture and Trade Todd maclay, but the chair of
Beef and Lamb New Zealand is hosting the events. The
event should I say? It's the launch of the mid
season update, Kate Ackland. Good afternoon, welcome to the country,
and you're putting on a bit of a shin dig

(00:21):
on the farm, are you hi, Jamie?

Speaker 2 (00:24):
Look, thanks for having me. I don't know if i'd
call it as that. I've got a roast in the oven,
and I've got the Minister for lunch, which will be fantastic,
really really great that they're joining us for this.

Speaker 1 (00:33):
You've got the Minister for lunch. I hope he tastes
all right, let's talk about I'm sure beef and Lamb
Kate is on the menu for lunch. It goes without saying,
but throw talk to me about some of these numbers
because they're vastly improved on this time a year ago.

Speaker 2 (00:48):
Well, look, it is a really fantastic good news story.
We are forecasting an increase of one point two billion
dollars increase on esport receipts to ten point two billion
for the current season's despite lower export volumes from last year,
so it's really good news. We've seen farm profitability almost
double from last season, so that's really just helping to

(01:09):
build that on farm confidence.

Speaker 1 (01:11):
Now, the average farm profit for twenty four to twenty
five season is forecast at one hundred and six thousand,
five hundred dollars. And while that sounds pretty good from that,
you've got to pay obviously for your drawings, your tax,
your capital expendit show and you've got to make principal
repayment as well, So there's not much left at the

(01:32):
end of the day. And I don't want to sound
wingy and mony about it, but when you've got several
million dollars invested in a business or an operation, you
need returns better than that. And I note that even
at that level, it's still below the five year average
for profitability.

Speaker 2 (01:50):
Look, you're right, and costs to remain a real concern.
You know, while we've seen that improvement revenue, we've got
farm and costs have gone up to thirty three percent
in the last four years. But I think the reason
that we really wanted to make a celebration of this
is that actually it is a real turnaround and it's
a really positive story. It's positive direction to be heading in,
and you know, it's good for all of New Zealand

(02:12):
because we know that when agriculture does well, all of
New Zealand does well.

Speaker 1 (02:15):
Absolutely well. Let's crunch some of these numbers. Lamb prices
are forecast to reach one hundred and fifty five dollars
per head, up twenty percent from last season and importantly
nine percent above the five year average. Mutton, which used
to be really good and then crashed, has made a
big comeback ninety dollars per head, seventy percent increase on
last season. And we all know, of course cattle prices

(02:38):
are at record levels.

Speaker 2 (02:41):
Yeah they are. And I think what we've seen with
the lamb, we've seen the process has really worked to
divers say and shift the product into higher value markets.
So they've seen in the last twelve months a really
big increase in sales into the UK, into Europe, into
the US and even in Canada. Mutton is a bit
trickier because obviously that is very centered on China, and
China still having some pretty tough economic times and on

(03:03):
the beef one, I mean the US it's their heads
at record lows, so really really highfully is coming out
of the US market.

Speaker 1 (03:10):
They still need our beef. Let's going and when we've
spoken to Todd mclay's so we won't go down the
track ourselves. They still need our beef. It's going to
be really interesting to see what happens. Terrified, Kate and
we all are waiting with Bates and breath, not knowing
what to expect on April too.

Speaker 2 (03:28):
Look, absolutely, there's a lot of uncertainty out there, and
we do know that you know, uncertainty will create the
volatility in the market. But it's certainly something we'll be
talking through with the Minister at lunch to that.

Speaker 1 (03:39):
Well, you enjoy your lunch with the Minister of Agriculture
and Trade. Is he going to do a farm tour.

Speaker 2 (03:43):
If he's got time. There's plenty happening on the farm
today with sharing where we're spraying gorse with the spray drone,
so for plenty to get out and see.

Speaker 1 (03:51):
So do you who does the spray drone spraying? Do
you get a contract the run or have you got
a drone yourself?

Speaker 2 (03:57):
No, there's a local guy here near me who's set
up and he's doing a fantastic job.

Speaker 1 (04:03):
Yeah, that's the great way to spray gorse and far
away gullies and inaccessible places.

Speaker 2 (04:08):
Oh, it's sure that I don't know if we'll ever
have the chopper back.

Speaker 1 (04:11):
Fantastic, be a lot cheaper too. I'd imagine what is
the season like in at Mount Summer's There you're under
the foothills of the Alps there, you reasonably sum are safe?
Are my safe in saying that, Yes.

Speaker 2 (04:25):
We're in a bit of a rainband and we're she
having a great summer, particularly after last year was a
bit try and challenging, but you know, really thinking about
the rest of the country with a lot of people
who aren't as lucky as us this year.

Speaker 1 (04:36):
Yeah, I'm looking at the knee with drought index mat
Kate and honestly Canterbury's looking as Canterbury's probably better off
than anywhere else in the country.

Speaker 2 (04:46):
Yes, yes, it's been. It has been a great summer.

Speaker 1 (04:48):
Yeah, unless, of course you're I shouldn't say, unless of
course you're an arable cropping farmer or a seed farmer.
It hasn't been too good for them. Tough times for
those guys. All right, we'll let you go and go
and have lunch with Minister of Agriculture and Trade, Todd McLay.

Speaker 2 (05:04):
Great, thanks, gentlemen, nice to talk