January 21, 2011
New Zealand's beef industry strengthens amid Australian floods
New Zealand beef farmers look forward for unexpected boosts from devastating floods in Australia as disruption to livestock sales in the state of Queensland opens up new markets.
With increasing meat exports along with rising dairy prices, this could help keep a surplus in New Zealand's yearly goods trade and current account deficits in check, improving an economy that is under immense pressure with an overvalued currency, with external debt worries.
David Carter, New Zealand's Minister of Agriculture said in an interview, "There may be some market opportunities around beef into export markets where there is current competition and we are there to fill market opportunities if they exist." Meat, which includes beef, represents 12% of New Zealand's yearly merchandise exports, second to only its NZD10 billion dairy exports.
In November last year, Standard & Poor's altered its outlook for New Zealand's foreign currency credit rating outlook to negative from stable, warning of a possible relegation to its long-term AA+ due to the country's expanding external imbalances.
Cattle movements by road and rail to slaughterhouses have been restricted due to the extensive flooding in Queensland, Australia. The Port of Brisbane also shuts it doors for a week until Tuesday (Jan 18) by flood debris. Queensland accounts for almost half the beef exports from Australia, the second largest international exporter after Brazil.
