It published a mid-season update for 2016-17 incorporating its predictions for the season as a whole in lamb, beef, wool and the average sheep and beef farm accounts.
The $8500 increase in farm profit was compared with the new season outlook published by B+LNZ six months ago and incorporated the rising lamb and beef prices now available.
Gross farm revenue had been recalculated at $437,800, down 4.3% from 2015-16, driven down by low wool prices and reduced farm output.
Total expenditure had been estimated to decline 2.2%, with the largest falls in repairs and maintenance, fertiliser and interest payments.
Therefore, the nominal farm profit before tax would be $75,200, down 11% from the previous year, assuming an exchange rate throughout the year of US70c.
Six months ago the outlook was not as good as it was now, B+LNZ chief executive Sam McIvor said.
“The update is telling us profitability is still not great but farmers are in a better space and are confident of their ability to feed stock.
“We’re seeing ewes in excellent condition for mating and we also expect to see strong hogget mating numbers.”
The mid-season update also pointed to better-than-expected lamb and beef prices.
Six months ago the economic service predicted 485c/kg for lamb but the season had started poorly and only in recent months had prices risen to 560-580c.
Because it was late in the season, the season average would benefit by 10c to 495c, which was the new forecast.
Lambs were expected to average 18.4kg carcase weight and would bring farmgate prices of $91 a head, down 2.9% from the previous season.
The farmgate mutton price was estimated to average $68/head or 270c/kg.
The economic service based its update for beef on 503c/kg for steers and heifers and 492c for bulls, slightly lower than the previous season.
Favourable weather, good grass growth and a shortage of livestock had also contributed to lifting farmgate prices as processors sought livestock to meet customer needs.
While the average farmgate price across all classes of cattle was expected to ease by 5.6%, an increase in the average carcase weight would partly offset the price drop.
The revised outlook also incorporated a 22% reduction in crossbred strong wool prices to 303c/kg greasy.
