China’s new beef tariffs expected to favour New Zealand exporters
Additional tariffs introduced by the Chinese Government last month on beef imports should favour New Zealand farmers and exporters.
Chief supply officer for Silver Fern Farms (SFF), Jarrod Stewart, says some drier parts of the country saw some much-needed rain, and further south it's been a relatively colder summer. All of which he says has translated to some farmers holding back animals to put on weight.
But he says in other parts of the country SFF are seeing good livestock flows, and for everywhere else we expect flows to start picking up as we get further through the year.
"Farmers will need to reach out to their livestock representative to plan bookings and help avoid any bottlenecks," he says.
Stewart says in terms of the markets, SFF continues to see good positivity out of the United States for beef pricing. But he adds they also have their eye on the new administration under President Trump to see if there are going to be any potential policy changes that might impact exports.
"The Chinese New Year period is now underway and this will be an important time for assessing how sentiment among Chinese consumers is tracking," he says.
Stewart says, overall, this year they're seeing a more positive perspective in terms of pricing in key markets, but that there's still some procurement tension underpinning the schedule.
He says, in the meantime, they'll continue the delicate balance of matching supply to operating capacity.
