September 10, 2008

New Zealand is seeing a slightly higher slaughter rate for cattle, the effect of drought during the earlier half of the year.

During the first six months of CY 2008, total cattle slaughter estimates to 3.675 million heads, bull, heifer and steer slaughter rates were up 14.5, 8.7 and 12 percent respectively as compared to the same period last year accompanied by a general decrease in average carcass weights caused by the drought.

The drought, which affected most areas of New Zealand, accompanied by the ongoing conversion away from sheep and beef production to dairying, resulted in a shortage of feed and stock being slaughtered to reduce stock numbers, enabling 330 new dairy farms to come on stream in CY 2007.

Now that the drought conditions are over and judging the seasonal nature of the slaughter pattern, it is assumed that during the second half of the year, adult cattle slaughter numbers will be similar to last year and that the total adult cattle slaughter, other than cows, for the whole of CY 2008 will be 6 percent ahead of CY 2007.   

During the first six months of CY 2008, the total cow kill was up by 0.8 percent and is forecasted to continue during the remainder of the year. The cow kill was influenced by two major factors: the reduction in the beef cow herd from 1.2 million to 1.13 million head, which resulted in an extra 70,000 beef cows being slaughtered; and the retention of at least 65,000 dairy cows.

By mid-August 2008, calf slaughter was nearly half way through its season and slaughter tallies are estimated to be 1.5 percent behind CY 2007.  USDA forecasts that with another 200,000 dairy cows producing calves in CY 2008, the total calf kill will edge pass by only 7,000 heads, a 0.5 percent rise.

Overall beef production should reach 618,000 tonnes, an increase of 1.8 percent on the previous year. The combination of the sell down of beef cattle stocks and increased retentions in the dairy herd suggest that the total closing inventory will rise to an estimated 9.833 million head, a 1.1-percent increase over beginning inventories.