Price, costs and income trends for New Zealand pastoral farms

Abstract

An investigation of inflationary adjusted historical price trends of New Zealand pastoral farmers’ income and expenses over the past thirty years was investigated . The Consumers Price Index was used in the comparison of historical inflationary adjusted income and expenses of New Zealand lamb and beef farmers focusing on lamb production and returns compared to beef, venison and dairy farming. The Question ‘Are New Zealand pastoral farms economically sustainable at the current returns and costs that are imposed today? Or has the trend over the last thirty years been that lamb, beef, venison, wool and dairy product returns have been declining as expenses have been increasing? ’was investigated using the research questions 1 . How much have sheep and beef farm expenses changed over the past thirty years in relationship to farm returns and land prices? 2 . How much has wholesale market returns changed for lamb and beef over the same period? 3 . Are New Zealand sheep and beef farms as economically sustainable at the returns and costs that are currently being imposed on them as they were thirty years ago? 4 . Where to in the future for sheep and beef farms expenses and income?