US beef cow rebuild begins
After the drought-induced decline in the US beef cowherd in recent years, the industry is making amends and rebuilding its depleted numbers.
Figures just released by Beef + Lamb NZ show that beef and veal exports for the quarter were $599 million – a staggering 47.9% above the same period last year.
In the same quarter lamb earned $526 million – a modest 2% increase on the same period last year.
The unprecedented rise in beef exports has the economist searching the records. BLNZ chief economist Andrew Burt says the tonnage of beef and veal for October-December is 78,000t – up 14.4%.
“This reflects record high international beef prices, driven by a beef shortage in the US and high slaughter numbers in New Zealand partly due to low dairy prices,” Burt told Rural News.
“The additional beef New Zealand exported was essentially directed to North America, particularly to the US. North America accounted for 58% of New Zealand beef and veal exports in the first quarter of the 2014-15 season, up from 45% in the same period last season.”
Also noteworthy is that beef prices for the last five years have hovered about $6000/tonne. But for the first quarter of this year they are suddenly up 29% higher at $7670, which Burt attributes to the strength of the North American market. For the same quarter last season the price was $5940 a tonne.
Most of the beef going into the US market is for manufacturing. Burt says any farmers selling bulls and heifers will be doing well, but it might be harder for those trying to buy weaners.
Meanwhile lamb exports are making modest increases. The $9140/t for lamb during October-December is 8.7% up on the same period last year, while the tonnage at 57,500 is down 6.2%.
The tonnage of mutton exports for the quarter is also down by 4.4% to 17,200 on last year. The value of mutton exports at $93 million is just over 1% down.
