Sheepfarmers forced to abandon lambs?

Press, 8 March 1988, Page 5

Sheepfarmers forced to abandon lambs?

I I PA Wellington Plunging farm 1 incomes may force thousands of sheepfarmers to! abandon lamb production and turn to woolgrowing, {the. Meat and Wool Board’s Economic Service said.

A report made available to the “Dominion,” shows that the -average stockfarmer’s income for the season ending June 30 will drop 28 per i cent after allowing for inflation. Many ; hill-country farmers have already decided not to breed for lambs next spring, and their decision could have further , negative effects on the I meat! industry Which has had; the lamb •kill reduced by 22 per cent ini the past, three seasons, I the {newspaper said. I Mr Neil Taylor, the of the: economic

service, said even a further 10 per cent swing away from lamb production would reduce the lamb kill by 4.5 million. The Meat Industry Association’s executive director, Mr Peter Blomfield, said the lamb kill was down about 25 per cent and that more than 3000 meatworkers had been laid off since Christmas, when the killing season should have been in full swing. Many works were working four-day weeks or alternating chains.

The chairman of the Federated Farmers Meat and Wool Council, Mr David Petersen, said, “You’re now looking i at $ll a head-for a draft of 15-kilogram lambs. Nobody’s going to kill them for that.” I

In projections till {the

end of the season on{ June 30, the report! shows that an average farmei’ will lose 13 per cent of sheep income, compared; with last year, 6.5 per cent on cattle and the {same aimount on cropping. But wool income will improve by 8.5 per cent.

On expenditure it shows that the average farmer will spend 6.25 per cent less on fertilisers, will not increase repairs ’ and maintenance I expenditure above last year in spite of 7 per cent j inflation in farming, will pay another 4.8 per cent in interest charges and 2.8 per cent on other farm expenditure. i ; ■ j

That will give a net income of $17,300, which is 20 per cent below last year’s; or 28 per cent less in real terms. I