Thursday, 09 September 2021 07:55

NZ beef demand to remain strong

Written by  Content supplied by Rabobank

Good spring

Despite significant turbulence in global beef markets, pricing for New Zealand beef remains strong and local producers are heading into the spring in a great position, according to Rabobank's latest Global Beef Quarterly report.

Farmgate pricing in New Zealand has remained elevated over the past three months.

This high pricing comes off the back of strong demand from China and suppressed beef export volumes from Australia.

Pricing across both islands is tracking well ahead of last year and currently sits 10% above the five-year average.

Exports rise

New Zealand beef exports for the first half of 2021 were 3% ahead of 2020 volumes.

While volumes to the US and Canada were down 26% and 56% respectively, exports to China rose strongly and were up by 21% on the first six months of last year.

Although volumes were higher, export earnings for the first half of the year were back by 5% as a result of a stronger NZ dollar and greater volume going to lower-value markets. New Zealand beef pricing is expected to remain strong through to November.

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

Some risk

Downside risks do exist, however, with an easing of wholesale beef prices in the US, higher US cow kill, the end of their summer grilling season and the winding up of stimulus packages all having the potential to adversely impact NZ beef pricing.

Don't cry for Argentina

Government restrictions on Argentinian beef exports are set to have substantial impact on global beef trade over coming months.

The restrictions - imposed by the Argentinian Government in late June with the aim of boosting domestic beef supply - limit Argentinian beef exports to 50% of the average monthly volume exported from July to December 2020.

As Argentina was the fifth largest beef exporter in 2020 and the second largest supplier to China, this cut in export volumes has the potential to have a significant impact on global beef trade.

Limited exports from Argentina - mainly to China - would benefit other beef-exporting nations, primarily neighbouring markets such as Brazil and Uruguay.

At this stage, Argentina's export reduction is having little, if any, direct impact on New Zealand beef exports. However, it could help to provide a pricing-floor in the market.

More like this

Nice lift!

OPINION: The Hound reckons the country's hard-pressed wool growers will be pleased to know that rural banking specialist Rabobank has laid woollen carpets in its new Hamilton-based HQ.

Dairy, beef, and lamb exports rise

The monthly value of goods exports in October 2021 rose $552 million (12%) from October 2020, to $5.3 billion, according to Statistics NZ.

National

Hort heads for new heights

Pretty impressive - that's how Agriculture Minister Damien O'Connor describes MPI's latest prediction that horticulture exports will hit the record…

Machinery & Products

New look for MF brand

Massey Ferguson has a new look for its iconic triple triangle logo, as well a completely new 'Born to Farm'…

Solution to rowdy livestock

After walking away with a Fieldays Innovation Award back in June 2021, Springarm Products has now signed a sole marketing…

Look ma - no hands!

Although this month's Consumer Electronics Show (CES) in Las Vegas is usually associated with the "geek brigade", global manufacturer John…

Telehandler range gets a lift

Kramer has introduced a further two models to its telehandler range – the mini KT144 and the medium-sized KT3610.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Woof, woof!

OPINION: This old mutt has been pointing out forever just what a dog with fleas - as both a business…

DJ friends?

OPINION: Your canine crusader wants to know just what drugs the politicians and bureaucrats are on in Wellington.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter