New Zealand beef prices hit by floods of dairy cow beef

Culled cows from US dairy herds are flooding the valuable hamburger trade, depressing beef prices in New Zealand.

Prices have dropped about NZ$100 per head for a steer from their peak a year ago.

Federated Farmers Meat & Fibre chairman Bruce Wills said beef had been a solid performer over recent years, but returns had declined lately.

Wills said the culling of low performing or surplus cows by the US through government subsidies was hurting the New Zealand beef industry because it was oversupplying the manufacturing beef market.

About 40 percent of prime beef is unsuitable for the higher priced markets and goes with dairy cattle into the manufacturing beef market, chiefly for hamburger meat.