China lockdowns hit dairy demand
Covid restrictions in China are likely to slightly dampen milk powder imports into that country, according to Stefan Vogel, Rabobank research general manager for Australia and New Zealand.
Read: Coronavirus starting to impact meat processing.
SFF chief executive Simon Limmer says it is working with its Chinese partners to monitor the situation on a daily basis.
“We are diverting product to other markets….while short-term these markets deliver lower value returns, and will unfortunately have an impact on upcoming livestock pricing, it will enable us to maintain our ability to process stock.
“While beef and lamb items can be diverted, we have very limited market options for mutton with China the main global market for mutton.”
SFF is reducing mutton processing at its plants from next week and says it recognises the impact of its decision on NZ farmers.
“During peak production and with limited feed availability, the timing of this event is challenging and processing continuity is important,” Limmer says.
He is urging farmers to talk to their SFF representatives for more information.
