Co-op boosts chilled exports to China
Alliance Group has secured greater access for chilled beef exports to China, following approval for two of its processing plants to supply the market.
Markets for New Zealand lamb have performed strongly for the last six months, says Affco general manager Andy Leonard.
While some Brexit anxiety persists in the UK, other markets – Europe, the US, the Middle East and China -- have performed above expectations.
“Farmers should be lot happier with the state of play,” Leonard told Rural News.
He believes a shortage of lamb exports from Australia and NZ help explain the price rise. A “relatively consistent” exchange rate over the last six months is also helping farm returns.
Affco is one of NZ’s four large meat exporters; lamb and beef are its main exports.
“Lamb prices today are well above those at the same time last year; six months ago that didn’t look like happening.”
On the beef market, Leonard says it remains solid, backed by the US ground beef market holding up.
“Generally beef pricing is solid and consistent -- not too many fluctuations.”
In recent weeks most NZ meat plants have been processing cows culled by the dairy industry.
But with the dairy payout picking up, cull cow numbers are expected to drop.
Leonard says cull cow kill numbers are down 15% year-on-year. “Most beef plants would have been reasonably full but it will now start to drop off.”
Recent rain has offered respite for some from the ongoing drought.
New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
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