increase font size
Rabobank forecasts New Zealand's beef prices to firm next quarter, as supplies tighten after the higher, drought-induced slaughter volumes, and forecasts of a wetter-than-average winter also encourage producers to retain stock.
Rabobank animal proteins analyst Matt Costello said improved seasonal conditions during May and tightening of supply, allowed prices to recover for most categories during April and May.
"At the beginning of June, the North Island bull price averaged NZD 395c/kg, slightly higher than the corresponding week last year," Costello said.
Nonetheless, Costello said while some areas have improved, there will be tight feed and water supplies through winter in other regions.
"Total beef slaughter for the New Zealand beef processing season, October to April, remains 20% higher than the same period last year, at 1.529 million head," he said.
"Following the same trend as the first quarter, the majority of the additional numbers processed have been cows, with more than 600,000 processed during the seven months to April.
"This represents a 56% or 216,791 head increase year-on-year, although this compares to a low base year due to a better-than-normal season in 2012, with the majority of the kill attributed to the dairy herd."
After drought was officially declared across parts of the North Island in February, the Rabobank report shows slaughter volumes have continued to track well above year-ago-levels.
"As a result of the higher production, export volumes throughout 2013 have tracked well above last year, but are expected to slow heading into winter and spring," Costello said.
Total New Zealand exports from January to April increased 21% year-on-year, to 163,382 tonnes shipped weight, underpinned by strong demand for lean manufacturing beef.
While the US accounts for more than half of New Zealand exports, shipments to China have certainly been "a bright spot" so far in 2013, Costello said. "Exports reached 20,178 tonnes shipped weight, which is well ahead of the 1,211 tonnes sent last year."
Tightening of 'grey channel' trade, lower domestic Chinese production and stronger demand for New Zealand product has driven this growth, with the Chinese market firmly establishing itself as New Zealand's second-largest export market.
While the higher production has encouraged higher export volumes, average export values have been tracking slightly lower than the same time last year.
"It will be interesting to see how demand – particularly from the US – tracks if New Zealand supplies tighten and importers are required to pay higher prices," Costello said.
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Free workshops are being offered around the country to help farmers take more ownership of their farm business finances.
Could smaller foodservice operators take advantage of the benefits of artificial intelligence (AI)?
A change of government and the possibility of better markets prices has lifted farmer confidence, but it still remains fragile.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…
