May 8, 2009

New Zealand March cattle slaughter reached 263,759 heads, up 22 percent year-on-year, figures from the Ministry of Agriculture and Fisheries show.

Cow slaughter accounted for the majority of the rise, increasing 62 percent on the previous March to 113,998 head.

Although prices in NZ$ terms are higher than usual, (with a 195-220kg over-the- hooks cow fetching 182A¢/kg, up 8 percent on last year) the increase in cow slaughter is a result of the large NZ dairy industry. The dairy's rapid expansion in previous years has yielded greater numbers of mature dairy cows being turned off. Also, dairy prices are currently at a five year low, having fallen 58 percent from their peak, causing some liquidation of capital stock

The increased consumption of ground meats in North America due to economic recession has swung towards cheaper beef such as of New Zealand. New Zealand processors will be holding their breath over the rest of autumn (the traditional peak period for NZ dairy cow culling), as the US dairy industry is poised to subsidise further dairy-herd retirement through the Co-operatives Working Together scheme.