Demand for NZ beef remains strong amid global disruption

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Prices for New Zealand beef remain strong in exports markets despite the turbulence in the global beef trade, with producers in a good position ahead of spring, a new report says.

Restrictions on beef exports from Argentina and ongoing disruption from Covid-19 were creating turbulent conditions in the global beef trade but farm gate prices for New Zealand beef had remained elevated over the last three months, RaboResearch analyst Genevieve Steven​ said.

Rabobank’s quarterly report on the global beef trade showed this was due to demand from China, as well as lower export volumes from Australia.

“Pricing across both islands is tracking well ahead of last year and currently sits 10 per cent above the five-year average,” Steven​ said.

Exports for the first half of the year were up 3 per cent on last year’s volumes, despite less beef going to the United States and Canada. Export volumes of beef had dropped by 26 per cent and 56 per cent respectively in those markets, as exports to China had risen strongly, up 26 per cent, compared to the first half of last year.

“Although volumes were higher, export earnings for the first half of the year were back by 5 per cent as a result of a stronger New Zealand dollar and greater volume going to lower-value markets.”

But beef pricing was expected to remain strong through to November, she said.

“We anticipate New Zealand prices will be held up by continued strong demand from the US and China.”

 

by Bonnie Flaws / stuff.co.nz

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