Sheep and beef farmers face a tough year if the New Zealand dollar stays high, with average pre-tax profits predicted to fall 13%. Currency fluctuations, a weak and volatile outlook for lamb and wool, plus the impact of drought and facial eczema in the North Island, would impact profitability, Beef + Lamb New Zealand's 2016-17 new season outlook says. The weakness of sterling since the Brexit referendum in June also had a negative impact, as the United Kingdom normally accounted for 20% of New Zealand's lamb exports. While sheepmeat prices were uncertain, farmers reported it had been a very favourable lambing with high survival. This season, sheep and beef farmers would spend a total of $4.2 billion on fertiliser, interest, repairs and maintenance and general farm operating items, down $80 million on last year.

Source: Otago Daily Times November 01, 2016 17:10 UTC