May 4, 2004

New Zealand Beef Fetching High Prices In USA

Prices of New Zealand manufactured beef have jumped sharply in the Unite States. The rates are in their second-highest level in a decade.

The NZ prices rallied strongly in the United States last week with imported beef up US5c/lb (NZ17.83c/kg). The United States Department of Agriculture revealed this on its website today.

Bull beef reached US125c/pound ($4.46/kg) and cow fetched US115c/pound ($4.10/kg). These prices were seen only once before in the last 10 years, the USDA said in its weekly summary of NZ meat and wool exports.

"These prices are surprising, considering that NZ processing of manufacturing beef is at near-record levels," the department said.

The strong pricing was assisted by a 20 per cent-lower US cow kill over the last 6 weeks, good weather for outdoor cooking (barbecues), and limited supplies of imported beef.

There was a "good outlook" with prices of cuts steady in most markets and a falling kiwi dollar.

All market factors for lamb sales in the USA were "positive", with overall returns rising about NZ7c/kg, while price changes over the past four weeks being a lift of about NZ35c/kg.

Due to low supplies globally, NZ exporters had reported that the lamb market outlook was very good.