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Heather Stacy.
Lamb, sheep and deer prices are likely to remain firm, but cow and bull prices could soften, according to the Alliance Group’s projections for the new season.
Heather Stacy, Alliance’s general manager livestock and shareholder services, told a recent meeting of shareholder farmers at Little River, Banks Peninsula, that prime beef prices should remain similar to last year at $5.00 - $5.40/kg early season and $4.80 - $5.20/kg post-Christmas.
However, she says bull and cow prices are under pressure and softening compared with last season. These are projected to be about $4.00 - $5.00/kg early season and $4.70 - $5.00/kg post-Christmas.
Stacy was outlining the farmer-owned co-op’s forecasts during its annual roadshow in which senior executives travel the country, updating shareholders on the co-op’s business.
Stacy says cattle give the co-op the most cause for caution.
“The influence of global supply out of Brazil, the US and Australia is having a downward draw on prices,” she told shareholders
“There is a misalignment between what we are capturing out of the market and an overheated livestock market in New Zealand; so that is where we are counselling caution.”
Forecasts for lamb were $5.70 - $7.00/kg early season and $5.50 - $6.00/kg post-Christmas. For sheep, Alliance is predicting $4.05 - $4.20/kg and $3.50 - $3.75/kg.
Stacy says demand for venison is very strong, but a risk exists that its high price on restaurant menus will prompting diners to substitute other meats. Venison forecasts were $9.85 - $10.20/kg and $9.00 - $9.30/kg.
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