Red meat exports slump, thanks to China
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
There are signs that the Chinese economy is rebounding after Covid-19, but dairy farmers may need to wait a little longer to reap the full benefits from their biggest market.
Westpac senior agri economist Nathan Penny notes that after growing at a paltry 3.5% over 2022, the Chinese economy should grow at around 6% over 2023.
"Already, we are seeing this impact in some of our export markets," says Penny.
"Sheepmeat markets have firmed and mutton and lamb flat prices, products popular in China, have jumped over the past few week. Similarly, export log prices have picked up, surging by around 20% since the start of the year."
In contrast, global dairy prices have largely yet to budge.
Penny points out that since the start of the year, overall prices have slid by around 5%, while whole milk powder prices have fallen by around 1%. The latest Global Dairy Trade (GDT) auction saw whole milk powder prices down 1.5% to US$3228/metric tonne.
"The exception to this overall weakness is butter prices, which have firmed by around 3% so far this year despite dropping in last week's GDT auction," he says.
"And this is the first sign that dairy demand is improving as Chinese consumers enjoy their newly found freedoms and head back out to restaurants, cafes and bakeries, places that use large quantities of butter."
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
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