Weather hampering meat producers

Press, 17 December 1988, Page 3

Weather hampering meat producers

PA Wellington In spite of strong wool and beef prices, extreme weather variations plus low sheepmeat and pelt returns have put a gloomy tinge on sheep and beef farmers’ expectations for the 1988/89 season. The latest Ministry of Agriculture and Fisheries farm monitoring report says the only good news for an industry devastated by drought in the east and floods in the west, comes in the form of rising wool prices and a stable beef schedule. The report says farmers expect the outlook for these two products to remain good and, where possible, farmers are trying to convert to one of these options.

Unfortunately prohibitive prices for both merino and beef stock mean many farmers cannot afford to change. Sheep numbers seem to have stabilised, mainly because farmers are loath to let flock size drop below a level where they can take advantage of strong wool prices, the report says. High country South Island merino farms have increased gross farm income by as much as 40 per cent compared with last year. The bulk sheep and beef farms not affected by flood and drought have incomes up only 3 per cent. Expenditure on these properties remains below maintenance levels.