A challenging year ahead for beef and sheep farmers.

Beef and Lamb New Zealand's New Season Outlook is predicting an overall decline in sheepmeat and beef export receipts in the next year.

Chief insights officer Jeremy Baker says they're expecting a decline of around 15 per cent in lamb exports and about nine per cent in beef and veal revenue.

“That will feed through to a reduction in on farm profit of around 26 per cent.”

Baker says global uncertainty caused by Covid-19 has taken the top end of prices out.

“Things like the food service industry around the world isn't operating the way it used to, so those top prices are no longer available at the level they were.”

Baker says there's also been an impact from the drought - with total volumes dropping as well.

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