April 6, 2026 • 7 mins
The chairwoman of Beef + Lamb New Zealand comments on the Mid-Season Update report, with average farm profit forecast to climb to $287,600/farm in 2025-26. Red meat farmers are expected to generate $8.5 billion on-farm this year and spend $16 million every day on goods and services, largely in their local communities.
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Speaker 1 (00:00):
But let's kick off the show with the chair of
Beef and Lamb New Zealand, Kate Ackland Kate. Two hundred
and eighty seven thousand dollars average profit before tax for
your average sheep and beef farm. Those are great numbers.
Speaker 2 (00:14):
Oh hey, Davie, we have really great numbers. And it's
not your average farm. It's the average across all farms
and look at the at levels would never seen before.
Even the inflation adjusted number is still eighty percent above
the decade average. So it's really good news for farmers
and good news for New Zealanders as well well.
Speaker 1 (00:32):
Slightly confused, what's the difference between the average across all
farms as opposed to your average sheep and beef farm.
Speaker 2 (00:39):
So it counts for all the different farm sizes, farm classes,
and it's a weighted average.
Speaker 1 (00:44):
Okay, so it's dragged up. It's dragged up a week,
but by some of the bigger players obviously, still really
good numbers are eight point five billion generated by farmers
on farm sheep and beef farmers and the twenty five
twenty six season, the one we're currently in. And here's
a good one for you. If you're wondering about the
(01:05):
value of the primary industries to New Zealand or to
the New Zealand economy. Sixteen million dollars a day farmers
spending on goods and services.
Speaker 2 (01:14):
Yep, so most of that is in the regional local
communities and the message that we really need to get
out there as useless of great for farmers, but it's
actually great for New Zealand's economy as well.
Speaker 1 (01:24):
So in your mid season update, you've looked at some
of the global markets. Some are obviously looking better than others.
For instance, North America just doesn't seem to be able
to get enough of airline beef.
Speaker 2 (01:37):
Well, market funt metals are really strong, which is is
great because obviously there is a lot happening in the world.
There's a lot of them said uncertainty, so you know,
the fundamentals are good and all the signals would say
that as long as this ward doesn't go on for
too long, the outlook going forward is still quite good too.
We've actually got a bit of a plug for the
out the Gate conference in the South Island coming up
(01:59):
in christ next month. But we've got a guy called
Simon Cruelty who is sort of a well renowned agriy
analyst coming to talk to that, and that'll get a
really good inside around actually what's happening and what the
outlook is. And you know what he's been saying is
things are still really solid.
Speaker 1 (02:15):
I'm pleased to hear that China you're quoting as being
a subdued economy, although they're kind of sitting back and
watching almost with the smirk on their face. I would
think about what's happening in the Middle East. It's not
doing China or Russia any harm by the looks of things.
Speaker 2 (02:31):
No, it's not. And like China is a subdurb but
it's still a really important market for New Zealand and
in having that optionality of where we can send our
product is really important. So it's good you've got coming
on the show later because of as be asking him
about India, I'm sure so we can sort of further
the that market optionality and diversify our markets even further.
Speaker 1 (02:53):
I will ask them just just for you there, Kate.
He'll be coming up next on the Country Radio Farmgate
Price Forecasts. Is this for twenty five twenty six the
season we're currently in, or do you go out to
next season.
Speaker 2 (03:08):
No, that's just for the season we're currently owned, so
really solow over ten dollars for lamb. The beef one
is I think seven fifty nine, but that it's all
careful so that includes as well, so not really solid prices.
But you know, I got sentiment information this morning that
suggests that outlooks for the next year is quite you know,
around that mark as well. And I think the other
(03:29):
good thing is regionally, some of those areas that were
very heavy and cheap in the South Island hill country
are the ones that have seen the biggest the biggest
improvement because I've had a really, really tough couple of years.
Speaker 1 (03:40):
Hey, I'm going to be talking to John mcavinni shortly,
who is that chief executive of steel Ford. But he's
also a pretty large scale why time my sheep and
beef farmer and he and John's a reasonably smart sort
of guy. He's moving into the collar system, the whole
to system, and I think that this is the potential here,
correct me if I'm wrong, for the likes of these
(04:03):
collared systems, not just Halter, but these virtual fencing systems
to revolutionize the way we farm, especially cattle on high
country or Hell country.
Speaker 2 (04:15):
Absolutely. I mean we've got hold across all our bese
and I think the key is that will actually allow
us to harve a small grass, will have better quality
past yet I think we'll actually be able to see
a bit of an uplift in production and it will
benefit both the sheep and the cattle system. So you know,
it's a really exciting it's an exciting outlook, and you
know we've actually all got money where we can start
(04:36):
thinking about what next and investing in our farms and
how to get more from them.
Speaker 1 (04:41):
You warned of the global uncertainty, and see there's a
lot of that around at the moment. Although if you're
to believe Trump, the war will be over at midday tomorrow,
I'm not quite sure that's going to happen. But how
do you factor in that uncertainty into your forecasts?
Speaker 2 (04:55):
Look, it's really hard and obviously there's always the care
of it that there is a lot of uncertainty out there,
and I think particularly it'll be the on farm inslation
that could be a challenge. And you know, between twenty
twenty and twenty twenty three, we had on farm inflation
of thirty percent, which was higher than CPI. That was
a really significant hit that farmers felt and we just
you know, that just came under control. We just saw
(05:16):
that fall back to zero or I think a bit
of numbers. There is no doubt that fuel and fertilizer
cost wall rise and that will actually start to impact
that farm profit number. So, like any of these things,
that is a bit of a best guess, but it
is based off seventy five years of data and forecasting
and they've got it. You know, the beef of an
(05:36):
economic server US has a pretty good record of being accurate.
So who knows is the answer?
Speaker 1 (05:43):
Yeah, just just summing up those key risks. Obviously the
Middle East conflicts the biggest one at the moment. But
mentioning mister Trump president forty five and forty seven, we
just don't know even on a daily basis, where we
stand with this tariff. So US trade policy is another one.
But this is an interesting one on the domestic front.
Autumn processing pressure and this is nothing new, it normally happens,
(06:06):
but we've had a very kind of grassy season and
farmers have quite rightly, I guess, hung on to stock
to put more weight on them because the schedules haven't
been falling. It's just good economics. But you do pay
the price when you from here on and try to
get stock and to get processed.
Speaker 2 (06:24):
Yep. Absolutely, And I mean I think that's been well
publicized in recent weeks that the lamb kill us today
is actually well, you know, thinks about five or six
percent back on last year. But we forcus to have
more more lands go through the plants that have got
to be a catch up at some point, and you're
the beef kill in a summer way is behind last year.
(06:45):
There may be a bit of a crunch in the
coming weeks and months, but you know, we've all benefited
from well a lot of us have benefited from a
good growthy season which has been quite a nice time.
Speaker 1 (06:54):
Well that's my final question for you farming at Mount Summers.
That's where you are, isn't it It is? Yep yep.
And the poor old arable and cropping farmers didn't necessarily
have a great time of it, the seed farmers trying
to get their stuff done, but it's been good for
pastoral farmers.
Speaker 2 (07:11):
It's been great for pastoral farmers. Yep. It's sort of
a dull og day we're just looking. It stays warm
enough so the grass keep grind.
Speaker 1 (07:16):
Okay, Hey Kate Ackland, thank you very much for your
time today on the country and your capacity as chair
of Beef and Lambon. I'll ask Damien about Indian FTA
up next.
Speaker 2 (07:26):
Thanks Jamie,
But let's kick off the show with the chair of
Beef and Lamb New Zealand, Kate Ackland Kate. Two hundred
and eighty seven thousand dollars average profit before tax for
your average sheep and beef farm. Those are great numbers.
Speaker 2 (00:14):
Oh hey, Davie, we have really great numbers. And it's
not your average farm. It's the average across all farms
and look at the at levels would never seen before.
Even the inflation adjusted number is still eighty percent above
the decade average. So it's really good news for farmers
and good news for New Zealanders as well well.
Speaker 1 (00:32):
Slightly confused, what's the difference between the average across all
farms as opposed to your average sheep and beef farm.
Speaker 2 (00:39):
So it counts for all the different farm sizes, farm classes,
and it's a weighted average.
Speaker 1 (00:44):
Okay, so it's dragged up. It's dragged up a week,
but by some of the bigger players obviously, still really
good numbers are eight point five billion generated by farmers
on farm sheep and beef farmers and the twenty five
twenty six season, the one we're currently in. And here's
a good one for you. If you're wondering about the
(01:05):
value of the primary industries to New Zealand or to
the New Zealand economy. Sixteen million dollars a day farmers
spending on goods and services.
Speaker 2 (01:14):
Yep, so most of that is in the regional local
communities and the message that we really need to get
out there as useless of great for farmers, but it's
actually great for New Zealand's economy as well.
Speaker 1 (01:24):
So in your mid season update, you've looked at some
of the global markets. Some are obviously looking better than others.
For instance, North America just doesn't seem to be able
to get enough of airline beef.
Speaker 2 (01:37):
Well, market funt metals are really strong, which is is
great because obviously there is a lot happening in the world.
There's a lot of them said uncertainty, so you know,
the fundamentals are good and all the signals would say
that as long as this ward doesn't go on for
too long, the outlook going forward is still quite good too.
We've actually got a bit of a plug for the
out the Gate conference in the South Island coming up
(01:59):
in christ next month. But we've got a guy called
Simon Cruelty who is sort of a well renowned agriy
analyst coming to talk to that, and that'll get a
really good inside around actually what's happening and what the
outlook is. And you know what he's been saying is
things are still really solid.
Speaker 1 (02:15):
I'm pleased to hear that China you're quoting as being
a subdued economy, although they're kind of sitting back and
watching almost with the smirk on their face. I would
think about what's happening in the Middle East. It's not
doing China or Russia any harm by the looks of things.
Speaker 2 (02:31):
No, it's not. And like China is a subdurb but
it's still a really important market for New Zealand and
in having that optionality of where we can send our
product is really important. So it's good you've got coming
on the show later because of as be asking him
about India, I'm sure so we can sort of further
the that market optionality and diversify our markets even further.
Speaker 1 (02:53):
I will ask them just just for you there, Kate.
He'll be coming up next on the Country Radio Farmgate
Price Forecasts. Is this for twenty five twenty six the
season we're currently in, or do you go out to
next season.
Speaker 2 (03:08):
No, that's just for the season we're currently owned, so
really solow over ten dollars for lamb. The beef one
is I think seven fifty nine, but that it's all
careful so that includes as well, so not really solid prices.
But you know, I got sentiment information this morning that
suggests that outlooks for the next year is quite you know,
around that mark as well. And I think the other
(03:29):
good thing is regionally, some of those areas that were
very heavy and cheap in the South Island hill country
are the ones that have seen the biggest the biggest
improvement because I've had a really, really tough couple of years.
Speaker 1 (03:40):
Hey, I'm going to be talking to John mcavinni shortly,
who is that chief executive of steel Ford. But he's
also a pretty large scale why time my sheep and
beef farmer and he and John's a reasonably smart sort
of guy. He's moving into the collar system, the whole
to system, and I think that this is the potential here,
correct me if I'm wrong, for the likes of these
(04:03):
collared systems, not just Halter, but these virtual fencing systems
to revolutionize the way we farm, especially cattle on high
country or Hell country.
Speaker 2 (04:15):
Absolutely. I mean we've got hold across all our bese
and I think the key is that will actually allow
us to harve a small grass, will have better quality
past yet I think we'll actually be able to see
a bit of an uplift in production and it will
benefit both the sheep and the cattle system. So you know,
it's a really exciting it's an exciting outlook, and you
know we've actually all got money where we can start
(04:36):
thinking about what next and investing in our farms and
how to get more from them.
Speaker 1 (04:41):
You warned of the global uncertainty, and see there's a
lot of that around at the moment. Although if you're
to believe Trump, the war will be over at midday tomorrow,
I'm not quite sure that's going to happen. But how
do you factor in that uncertainty into your forecasts?
Speaker 2 (04:55):
Look, it's really hard and obviously there's always the care
of it that there is a lot of uncertainty out there,
and I think particularly it'll be the on farm inslation
that could be a challenge. And you know, between twenty
twenty and twenty twenty three, we had on farm inflation
of thirty percent, which was higher than CPI. That was
a really significant hit that farmers felt and we just
you know, that just came under control. We just saw
(05:16):
that fall back to zero or I think a bit
of numbers. There is no doubt that fuel and fertilizer
cost wall rise and that will actually start to impact
that farm profit number. So, like any of these things,
that is a bit of a best guess, but it
is based off seventy five years of data and forecasting
and they've got it. You know, the beef of an
(05:36):
economic server US has a pretty good record of being accurate.
So who knows is the answer?
Speaker 1 (05:43):
Yeah, just just summing up those key risks. Obviously the
Middle East conflicts the biggest one at the moment. But
mentioning mister Trump president forty five and forty seven, we
just don't know even on a daily basis, where we
stand with this tariff. So US trade policy is another one.
But this is an interesting one on the domestic front.
Autumn processing pressure and this is nothing new, it normally happens,
(06:06):
but we've had a very kind of grassy season and
farmers have quite rightly, I guess, hung on to stock
to put more weight on them because the schedules haven't
been falling. It's just good economics. But you do pay
the price when you from here on and try to
get stock and to get processed.
Speaker 2 (06:24):
Yep. Absolutely, And I mean I think that's been well
publicized in recent weeks that the lamb kill us today
is actually well, you know, thinks about five or six
percent back on last year. But we forcus to have
more more lands go through the plants that have got
to be a catch up at some point, and you're
the beef kill in a summer way is behind last year.
(06:45):
There may be a bit of a crunch in the
coming weeks and months, but you know, we've all benefited
from well a lot of us have benefited from a
good growthy season which has been quite a nice time.
Speaker 1 (06:54):
Well that's my final question for you farming at Mount Summers.
That's where you are, isn't it It is? Yep yep.
And the poor old arable and cropping farmers didn't necessarily
have a great time of it, the seed farmers trying
to get their stuff done, but it's been good for
pastoral farmers.
Speaker 2 (07:11):
It's been great for pastoral farmers. Yep. It's sort of
a dull og day we're just looking. It stays warm
enough so the grass keep grind.
Speaker 1 (07:16):
Okay, Hey Kate Ackland, thank you very much for your
time today on the country and your capacity as chair
of Beef and Lambon. I'll ask Damien about Indian FTA
up next.
Speaker 2 (07:26):
Thanks Jamie,
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