Sheep profits beat cattle

Press, 6 October 1980, Page 1

Sheep profits beat cattle

PA Wellington Sheep have emerged as clear winners over cattle in a study of farm profits*. Income from sheep over the last 20 years has generally been higher than the returns frc": cattle, according to the study by the Meat and Wool Boards’ economic service. .

This probably confirmed what many in the industry had already guessed, said the service’s director, Mr N. Taylor. The results of the survey, based on North Island intensive finishing farms, are published in the latest issue of the Wool Board’s newsletter, “Wool World.”

Sheep profits have outstripped cattle profits, particularly in the last decade, according to the survey. In 1970, they were level pegging, both earning an annual $7 in gross income per stock unit.

By 1977, sheep had climbed to a peak' of $2O compared with $lO for cattle. Latest figures show sheep at $l7 and cattle at $ll. Whether this would be repeated in future would depend on relative prices of lamb, wool and beef. The survey did not attempt to produce answers that which would fit every farm, Mr Taylor said. “Changing the direction of a stock policy involves significant costs. The very real temptation of responding to short-term swings in the market prices should be avoided.” The study also looked at profit per hectare. “Sheep properties with a high sheep-to-cattle ratio have achieved a consistently higher gross and net income ,er hectare than similar farms where cattle predominate,” Mr Taylor said.