February 16, 2006

New Zealand's beef exports to rise 5 percent in 2006

New Zealand's total cattle slaughter is expected to increase 4 percent to 735,000 tonnes in 2006, revealed USDA's Feb 13 report on New Zealand livestock and products. The country's beef exports are also predicted to increase 5 percent to 625,000 tonnes in 2006.

The higher cattle slaughter rates were due to increased calf retention for beef production in 2004. This also resulted in increased beef production.

USDA said Japan's reinstatement of the ban on US beef have created more uncertainty in the international beef market. New Zealand's beef industry expects Japan to re-open its markets to US beef in 2006. However, the impact on New Zealand sales will not be significant as New Zealand beef does not compete with US beef.

New Zealand's combined exports to Japan, South Korea and Taiwan jumped 70 percent in 2004. This signified the great importance of these markets to New Zealand.

Following this, promotional expenditures by New Zealand's beef industry will keep the focus on the three markets. This will be an attempt to retain market share gained during the ban on US beef to these markets.

For the full USDA report, click here.