Strong demand for beef and sheep meat foreseen by New Zealand

The outlook for New Zealand's red meat exports remains positive, according to the latest forecast issued by Beef+Lamb New Zealand. “The outlook is positive. Fundamentals in key markets are solid, as strong demand and tight supply mean prices in export markets are forecast to lift for both sheepmeat and beef,” says B+LNZ’s Chief Economist Andrew Burtt.The outlook also forecasts average farm profit before tax to lift 9% in 2021–22, reflecting a 4% lift in gross farm revenue and increasing sheep revenue, including a modest lift in wool prices. “However, the forecast for a stronger New Zealand Dollar (NZD) will offset some of the buoyancy in New Zealand’s overseas markets and therefore limit increases in farm-gate prices,” Mr Burtt explains.China remains a critical driver of red meat export performance in 2021–22. “Demand from China and the US underpinned solid export returns in the latter part of the 2020–21 season as the economic recovery in both countries has been rapid and ...