September 22, 2014

US, China demand for NZ beef to continue into 2015
 

Strong demand for New Zealand beef from both the United States and China is likely to continue into 2015, according to EBLEX.
 

It is estimated that strong global prices and a more favourable exchange rate for the NZ dollar means that the value of trade could increase over 2% to US$2.19 billion.
 

An EBLEX analysis of Beef and Lamb New Zealand's new season outlook showed that the main export destination for New Zealand beef in the first nine months of 2013-14 was North America, accounting for about half of all export volumes and overall value.
 

It said the USDA forecasts a drop in US beef production of 1% in 2014-15. This decrease in domestic beef production, coupled with strong demand for processed beef, means US demand for New Zealand beef looks set to continue.
 

In China, New Zealand accounted for 11% of the import market in the first nine months of 2013-14 season, making it China's third largest supplier of beef. EBLEX said with the country's beef production levels remaining relatively unchanged into 2015, while consumption is expected to increase, it is likely that there will be ever greater demand in China for beef imports next year.
 

The number of beef cattle as at June 2014 was recorded to be up 2% at 3.8 million head on the back of a carry-over of older cattle, particularly in the North Island. EBLEX also said that the latest figures reflect on-going dairy conversions, largely in the South Island region, where dairy cattle numbers increased 1% to 6.5 million head.
 

Despite this, it said the Beef and Lamb New Zealand forecasts show that the number of cattle slaughtered for export in the 2014-15 season will be back 4% on the year at 2.20 million head. This is mainly due to reduced cull cow slaughters, which were boosted by drought in 2013-14. However, while forecast is to be back 8% on the year, a continuation of the dry conditions could lead to higher than expected cow turn-off.