November 19, 2009

New Zealand beef exports up on high slaughter

New Zealand's beef exports in October increased 36 percent over the month to 16,461 tonnes swt, driven by high cattle slaughter.

Shipments to the US rose 36 percent to 7,298 tonnes swt, and up 43 percent to Southeast Asia at 1,800 tonnes swt. Volumes to Japan and South Korea also increased 36 percent and 54 percent to 1,489 tonnes swt and 1,462 tonnes swt, respectively.

However, exports to Canada declined 23 percent to 565 tonnes swt.

New Zealand's cattle slaughter peaks around August/September, with over one million calves and vealers slaughtered over the two months, representing 86 percent of this period's total cattle kill.

Cattle prices in New Zealand have been affected by the higher New Zealand dollar and sluggish overseas demand, with direct-to-processor rates in October averaging 36- to 47-percent below a year ago.

However, cattle slaughter for the 2009-10 year is forecast to fall five percent, and it is likely that tighter supplies will provide some price stability for cattle producers.