A real backlog of cattle coming forward for kill is putting pressure on prices - particularly in the North Island. Dry conditions are continuing to plague North Island farmers and this is resulting in the cattle kill running at very high levels. Weekly kill numbers are 15% above the 5 year average for this time in the North Island, and 21% above in the South. Some plants are only managing to kill 20-30% of bookings and there are delays of up to 2-3 weeks which is a real concern for farmers looking to quit stock quickly.
Changes impacting Japanese beef market
Japan's new reduced import regulation for US beef is now in full swing and there have been big changes in the market already. Many Japanese retailers have discounted US beef products with others expected to gear up their US beef offerings in coming weeks. NZ exporters are suffering with bids for many cuts seeing large reductions in price. Tongue has been most affected as Japan is virtually the only market for NZ tongue. Some exporters have noted price drops of up to 37% on just a fortnight ago.
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Market Briefs by iFarm.co.nz iFarm the leading source of agri-market prices, information and analysis for NZ farmers. Receive benchmark prices for the works, store and saleyard markets delivered direct to your inbox. Visit www.ifarm.co.nz or call 0508 873 283.
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