As New Zealand and the rural sector accept responsibility for our share of carbon emissions, more increases are likely.

Since the start of 2001, on-farm input costs relative to meat production had risen 22% and that was ahead of the consumer price index, which is up by 14%.

Those figures did not factor in the latest fertiliser increase, Meat & Wool NZ economic statistician Rob Davison said.

It would be most unlikely for any on-farm costs, such as rates, power, levies, transport, just to name a few, to decrease in the future.

This means the suggested profit of $15 a lamb to farmers under a restructured meat industry may be insufficient, by the time the entity is up and running.

Straight Furrow asked two farmers, competitors in the wool and meat sections of the Mackenzie A & P show, what they thought about this.

Merino farmer Allan Paterson, from Gimmerburn, near Ranfurly, said he was probably about $7 plus, better off a kilogram than crossbred wool producers.

“But the way on-farm costs increases are going . . . we need a lift in value for wool. Power and fertiliser are the two big ones.

“In the last three years our costs have gone up so much. I agree with the $15 lamb profit, we will need more than that.”

Southbridge ram breeder Stuart Brannigan said the talked-about, $15 profit per lamb was a start in the right direction but middlemen were the ones who chipped away at the price.

“The $15. . . it will depend on how many middlemen have a finger in the pie. We still do the same work on the farm and with the sheep regardless of the price we get.”

It’s not as simple as a $15 profit, Mr Davidson said.

“The issue is, will overseas consumers pay a higher price for our lamb?

“A lot will depend on how the concept is developed over the next six months.

“Because the price we get, is ultimately what the market will stand, and our lamb is at the higher priced end of meat products.”