NZ sheep and beef farm profit expected to jump 96% year-on-year
New Zealand sheep and beef farm profit is expected to increase 96% to NZ$287,600 per farm for the 2025/2026 year.
This is due to higher livestock schedule prices offsetting higher farm expenditure, according to the Ministry for Primary Industries’ latest Situation and Outlook for Primary Industries (SOPI) report.
New Zealand export revenue for red meat and wool is forecast to lift 14% to NZ$14.1 billion in the year to June 30, 2026, the report said.
In 2026/2027, export revenue is predicted to rise 1% to NZ$14.3 billion due to strong global demand and constrained beef supplies. The stronger beef revenue is forecast to offset softer lamb export prices.
Meat Industry Association (MIA) independent chair Nathan Guy said the latest forecast reflects strong demand for New Zealand red meat in key overseas markets.
He said: “International demand for New Zealand red meat remains firm, with North American demand continuing to strengthen and Europe also showing solid demand, particularly for beef.
“That shows the continued value global consumers place on the high-quality, nutritious protein New Zealand farmers produce and the trusted reputation the sector has built in key markets.”
'Confidence'
Beef + Lamb New Zealand (B+LNZ) chair Kate Acland said sheep and beef farmers were feeling positive about the outlook for the sector.
“That confidence is important because it supports investment in farm businesses, local services and rural communities,” she said.
Acland added that recent Business and Economic Research (BERL) findings also highlighted the sector’s wider contribution across the New Zealand economy.
She said: “On average, farmers and processors spend NZ$64 million a day through communities and industries around the country, rising to NZ$133 million a day when indirect effects are included.
“That flow-on spending helps sustain thousands of businesses, backs the jobs they provide, and strengthens the economic base that supports communities up and down the country.
“We know that when the red meat sector does well, so does the New Zealand economy.”
Guy added that the outlook points to firmer returns across the sector as global supply remains tight.
He said: “Constrained global supply and resilient demand will continue to support returns across the red meat sector, supporting jobs, drive spending through rural communities and strengthen the wider New Zealand economy.”
