Meat & Wool New Zealand's economic service predicts the average profit for sheep and beef farmers to fall by a third, compared with last year.
In ita mid-season update, it forecasts a drop in the average profit before tax to about $37,500 and says the main blame rests with the exchange rate.
Executive director Rob Davison says the strengthening dollar, which started to erode sheep and beef export returns last season, is likely to continue for the first six months of this year.
However, Mr Davison says overall conditions for pastoral farming are better than they have been in recent years and stock are mostly in good health.
