Canterbury/Marlborough breeding and finishing sheep and beef
This chapter contains model results and commentary from the 2009 pastoral monitoring programme as a printable PDF. The chapter provides information on the production and financial status of the Canterbury/Marlborough breeding and finishing sheep and beef pastoral model farm. Model chapters will no longer be published in the pastoral monitoring report.
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This release provides key points and budget tables from the 2009 sheep and beef monitoring programme for the Canterbury/Marlborough breeding and finishing sheep and beef model. Final results from the 2009 monitoring round, with commentary on the model are due for release in late October 2009.
- Farm production in 2008/09 was down on the previous season following a drop in breeding ewe numbers associated with a poor growing season, uncertainty about the future of the sheep meat sector, and expansion of alternative land uses, such as beef, and dairy grazing.
- Net cash income in 2008/09 increased 5 percent to $287 900 compared with $274 600 in 2007/08. Sheep revenue increased 25 percent to $175,000 due to higher prices. Cattle revenue was static and wool returns dropped 16 percent due to lower prices and 353 fewer sheep stock units.
- Farm working expenses increased 5 percent to $185 600 in 2008/09 compared with $177 100 in 2007/08. This was despite holding expenditure levels as much as possible.
- Farm profit before tax increased from $14 700 in 2007/08 to $29 100 in 2008/09. This was due to better stock prices and close control on expenditure.
- Returns are expected to drop in 2009/10 because of lower cattle prices and easing in the average lamb prices from $80.95 to $76.56. Farm expenses are expected to drop 8 percent mainly due to lower fertiliser, feed and repairs and maintenance expenses. Farmers are expected to be very unhappy with the 2009/10 result but feel that there are few options for increasing returns.
Canterbury/Marlborough breeding and finishing sheep and beef model tables and graph
- Table 1: Key parameters, financial results and budget for the Canterbury/Marlborough breeding and finishing sheep and beef model
- Table 2: Canterbury/Marlborough breeding and finishing sheep and beef cash farm income
- Table 3: Canterbury/Marlborough breeding and finishing sheep and beef model budget
- Table 4: Canterbury/Marlborough breeding and finishing sheep and beef model expenditure
- Figure 1: Canterbury/Marlborough breeding and finishing sheep and beef model profitability trends
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Information about the model
This model represents 1555 finishing breeding farms in coastal Marlborough and Canterbury. Farms are located on the dry downs and plains, in irrigated areas, and in the higher rainfall upper plains. There is a wide range of farm sizes, stocking rates, stock classes, and performance in this region. The farms in the model have an average effective area of 369 hectares and normally run 9–10 stock units per effective hectare.
Breeding ewe flocks with lamb finishing predominate, with cattle finishing and/or graziers on many properties. Some farmers also derive income from some cash cropping, deer, beef breeding cows, lamb finishing, farm forestry, and off-farm sources. Cattle returns are calculated on a beef finishing policy.
For more information on this model contact: John.Greer@maf.govt.nz