Beef prices climb as supply contracts in key markets
With production volumes contracting in most major beef-producing regions, global cattle prices have continued to rise across recent months.
Australian exports are plunging and this could spell good news for New Zealand beef farmers, according to Rabobank analyst Blake Holgate.
Meat and Livestock Australia reports that beef exports in April were 6% lower than a year earlier.
Eleven of Australia’s top 15 most valuable red meat export markets are expected to enter recession in 2020, creating a range of factors that could impact red meat sales, MLA warns.
Holgate says a decrease in Australian beef exports was particularly significant for NZ, given Australia was New Zealand’s major competitor for beef exports in our two largest beef export markets – the US and China.
As a result of historically low beef inventories and widespread rain buoying local restocking motivation among producers, Rabobank anticipates the Australian 2020 beef slaughter will fall 14% this year and a further 2% in 2021.
“Consequently, Australian beef exports are expected to plunge by 17% in 2020 and the change in their slaughter composition – moving from a high to low proportion of females – will further affect the distribution of Australian exports into overseas markets.
“Australia’s lower cow kill will mean less competition for New Zealand exports of manufacturing beef in the US where New Zealand and Australia are the dominant suppliers of this product,” he said.
The lower Australian kill will also support the New Zealand beef industry’s prospects in China, with reduced Australian beef exports helping mitigate against increasing competition in China from other major beef-producing regions such as South America.
Last season, the US and China accounted for just over 70% of New Zealand’s beef exports.
And the reduced Australian competition into these two key markets will play a key role in holding up New Zealand beef export values in an otherwise disrupted global beef market, notes Holgate.
Many farmers around the country are taking advantage of the high dairy payout to get maximum production out of their cows.
In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.
Sheep milk processor Maui Milk is on track to record average ewe production of 500 litres by 2030, says outgoing chief executive Greg Hamill.
Parliamentary Commissioner for the Environment Simon Upton is calling for cross-party consensus on the country's overarching environmental goals.
Changes to New Zealand’s postal service has left rural communities disappointed.
Alliance is urging its farmer-shareholders to have their say on the proposed $250 million strategic investment partnership with Dawn Meats Group.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…