The red meat sector continues to shine, with lamb and beef prices on a steady upward trend. According to the latest ASB Commodities Index, lamb prices rose 0.8% and beef prices 0.4% last week. These gains are being driven by tight supply conditions and strong processor demand.
AgriHQ reports that the supply of finished lambs is drying up across the country. Meanwhile, recent rainfall in areas like Northland and the east coast north of Napier is slowing cattle flow, adding further pressure to the market. As a result, processors are paying more to secure limited stock.
Exports are also surging. March export data shows the largest volume of lamb shipped since March 2021, and beef exports reached over 51,400 tonnes—the highest March total since 2021. These figures highlight the strong global demand and the current opportunities for farmers with stock ready to go.
Even dairy is holding steady, with Fonterra keeping its $10/kgMS midpoint for this season. That’s not a bad signal for the wider sector.
Now’s the Time for Planning
With livestock prices on the rise and export volumes booming, many farming clients are likely looking at stronger profits this year. While that’s great news, it also means one thing: higher income can lead to higher tax bills.
If you're anticipating a good year, it’s a smart idea to stay ahead of your tax obligations. We recommend considering interim accounts—a valuable tool to get a clearer picture of your financial position partway through the year. They can help you make informed decisions, avoid nasty tax surprises, and take advantage of any planning opportunities before year-end.
If you'd like to chat about interim accounts or want help managing your upcoming tax obligations, we're here to help. Planning ahead now can save a lot of stress (and cost) later on.