February 26, 2010

New Zealand beef starts 2010 strongly

New Zealand beef and veal production rose 12% in January to 62,738 tonnes cwt, with slaughter rising 9% over the same period to 223,741 head.

Production in the North Island rose 26% for the month to 50,227 tonnes cwt, with increasingly dry conditions in parts of the Island forcing producers – mindful of previous year's drought affected prices – to quit stock in large numbers. In contrast, South Island production fell 22% to 12,510 tonnes cwt, with ample rainfall allowing producers to increase stocking rates.

Prices have fallen accordingly, aided by the high New Zealand dollar - 32% higher year-on-year at 72US¢. Over-the-hook rates for steers, cows and bulls averaged 11%, 18% and 14% less, respectively, in January than a year earlier.

With widespread rainfall throughout February reportedly providing good grass cover, New Zealand beef production can be expected to move back in coming months, this will be encouraged by poorer schedule prices.