Resilient global demand for dairy and a weaker New Zealand dollar are pushing this season’s forecast milk price towards a record $10/kgMS.
The report claims that after reaching a $5/kg mark, the bank’s weighted average beef price has started turning upward.
Meanwhile, lamb prices are already turning around, hitting $8.78/kg after hitting a low point that was still above most of the previous season’s high points.
Currently, global protein supply remains tight with few signs of this turning around, the report claims.
The report says ASB’s economists are staying optimistic when it comes to red meat demand.
“While global economic growth is set to slow, protein demand will remain relatively inelastic, and the ongoing reopening of food service channels should support the prices,” it reads.
The report states lamb prices are expected to outperform, with the stage set for a seasonal price peak in the $10.00-$10.50 range.