Beef and Lamb New Zealand says consistently high prices for commodities are likely to continue for some time, leaving farmers, and their bank managers, breathing a little easier.

Beef and Lamb’s Economic service released a mid-season update on Tuesday, which stated higher prices for beef, Sheepmeat and wool are underpinned by a global shortfall, meaning it may take some time for the market to readjust.

Economic Service Executive Rob Davison says that’s good news for our farmers in the meantime, as they look to pay down spiralling debt resulting from a few too many lean years.

"Looking at export receipts we’re going to be seeing lamb export receipts about $2.7 billion this year, which is about the same as last.

"What we’ve got is prices have made up for a shortfall in supply due to a difficult Spring. 

"Suddenly, even though there’s recession in the U.S and Europe and a slow recovery, there are orders for carpet and no stocks on hand, so suddenly there is a demand materialised for wool."

Mr Davison says an average before tax profit for a sheep or beef farmer this year could well be around 65 thousand dollars. 

This would be the highest in some time, but still well below the levels seen in 2005.