The Country 10/06/24: Kate Acland talks to Jamie Mackay

The chair of Beef + Lamb NZ comments on the latest on-farm inflation stats, showing a 2.8% increase for the 2023-24 season, compared to the previous year's horrendous 16.3% inflation rate (for the past three years inputs prices have increased by a whopping 32%).

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Episode Transcript

Speaker 1 (00:00):
Kate Ackland is the chair of Beef and Lamb New Zealand.
Looking forward to catching up with her at Field Days.
But I thought we would catch up on a good story.
Well I think it's a good news story. On farm inflation,
Kate is down for sheep and beef farmers. It's down
to two point eight percent and that's a far cry
from last year when it was sitting at sixteen point
three percent. That's the good news. I guess the bad

(00:22):
news is some of that inflation is baked into the
system already. Good afternoon, Good.

Speaker 2 (00:28):
Afternoon, Jamie. Look, thanks for having me, and firstly, congratulations
on your recent honor. That's very well deserved.

Speaker 1 (00:34):
Well, thank you very much. Kate. I'll give you half
an hour to stop that flattery. Now I'm just joking.
Talk to me about inflation because it's been a killer.

Speaker 2 (00:42):
Oh look, it has been a killer. And it is
really positive that it's trending downwards and it sort of
appears to have stabilized, but the reality is it is
still incredibly tough on farm. Over the past three years,
shed and beef farmers have seen a thirty two percent
increase in on farm costs and that's sixteen point three
percent that you mentioned for last year, the highest on
farm inflation rate was seen since the early eighties.

Speaker 1 (01:05):
No surprise that intrast rates was the major contributor coming
in at what let me have a lock twelve twelve
percent and we've got insurance. Is there any measure on
rates because the local body authorities, the local council seemed
to be having happy hour on farmers.

Speaker 2 (01:23):
Yeah, it is a concern. Look, rates increased just under
six percent last year. I think it was five point
seven percent, So most of his rates increases that farmers
already pushing back on at the moment, they haven't happened yet,
so that is something that could play into this coming
years inflation figures.

Speaker 1 (01:40):
I think the interest rates at twelve percent, as we said,
the biggest contributor to on farm inflation. I think we're
through the worst of that. Hopefully in the next twelve
months we'll see some relief there.

Speaker 2 (01:53):
I desperately hope through the worst of that. I mean,
any relief in that space will be a relief for
a lot of us.

Speaker 1 (01:58):
So he's hopefully and insurance costs, it seems like cyclone.
Gabrielle keeps on it's the gift that keeps on giving
here in New Zealand, and we're seeing more and more
of global events and insurance is just something, whether we
like it or not, that's just going to be more
expensive in the future. In fact, I think I know

(02:18):
a lot of farmers, Kate, who for instance, aren't ensuring
things like hay barns anymore.

Speaker 2 (02:24):
Right, Yeah, well, but I mean the three key areas
were interest, insurance in animal health, and fertilizer was the
other one that featured in there is contributing to that inflation,
So I mean the positive we've seen a bit of
a softening fertilizer process since this inflation rate was released.
But you're right, I think things like insurance are just
baked in there, Kate.

Speaker 1 (02:43):
Acklin with this chair of beef and lamb New Zealand.
That's enough about the on farm inflation. Hopefully that number drops.
I know you guys have got a big presence at
field Days, and I think on Wednesdays show, I'm going
to be chatting to one of your do they still
call them iron maidens. Stacey Wiker one of my favorite
rugby players. I call her a smiling assassin.

Speaker 2 (03:04):
Yeah, look, Stocy is so great, she's a brand ambackator
for beef and lamb. We don't call them iron maidens anymore.

Speaker 1 (03:11):
But has that politically incorrect now, Kate?

Speaker 2 (03:14):
Oh sure, maybe we don't have as many of them,
so it's only one maiden. But look at what it
is is just sharing that really positive message about the
role that red meat plays and a healthy, nutritious dart,
particularly for active people. So it will be at field
Days along with Beef and Landlink, the domestic marketing arm

(03:34):
of our organization, so we'll be there. We'll have the
on farm team showcasing a lot of the stuff and
the resources that we have available to farmers behind the
farm gate and you'll be able to order some of
those resources and chat to some of the stuff there.
And then we'll have a bunch of Olympians and we'll
have an Olympian cycle challenge. So lots going on in

(03:54):
the main pavilion at field Days.

Speaker 1 (03:56):
A final comment. You're farming at Mount Summers and Canterbury
there up the road, awey, but in North Canterbury it's
very very dire. In fact, it's still very dry up
the east coast of the South Island and the lower
East Coast of the North Island historically, Where does it sit.

Speaker 2 (04:12):
Kate look historically they would be getting from decent moisture
now and still have a little warmth for some gross
to heaven. So it is incredibly dry up there and
it is a real worry.

Speaker 1 (04:25):
Hey, Kate Aclan, thanks very much for your time. I'm
looking forward to meeting you at Field Days.

Speaker 2 (04:30):
Fantastic Thanks Jami