June 15, 2006

New Zealand beef exports down

New Zealand beef exports during May fell 5 percent on-year, to 44,310 tonnes while exports for the first five months of 2006 were down 14 percent to 184,100 tonnes.

Plentiful supplies during autumn (It is currently winter in New Zealand) is delaying slaughter. New Zealand normally has a high slaughter rates during this season.

Beef shipments to the US during May and the first five months of 2006 were 12 percent below year-ago levels, at 22,230 tonnes and 92,430 tonnes respectively.

The fall was blamed on higher US cow supplies as drought forced producers to offload their cows. This extra supply caused US 90CL beef prices to fall, which consequently depressed import beef prices.

However, exports to South Korea, New Zealand's second largest market, went up 33 percent in May to 4,780 tonnes. Expectations that the US may resume the beef trade with South Korea have depressed shipments in the past months, causing overall shipments for the first five months of 2006 to fall 21 percent to 19,340 tonnes.

Exports to Japan in May was equally discouraging as it went down 18 percent on year-ago levels, to 4,320 tonnes. Similarly, exports for the year to May fell 12 percent, to 19,320 tonnes.