New Zealand beef demand to remain strong

Published Sep 9, 2021

Tridge summary

New Zealand has seen elevated farmgate pricing for beef over the past three months due to strong demand from China and reduced exports from Australia. Prices are 10% above the five-year average and are anticipated to remain strong through November, despite potential risks such as lower US wholesale beef prices and the end of stimulus packages. Argentinian beef exports are expected to significantly impact global beef trade by being limited to 50% of the average monthly volume, potentially benefiting other beef-exporting countries like Brazil and Uruguay. However, at this point, Argentina's export reduction is not directly impacting New Zealand beef exports.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Farmgate pricing in New Zealand has remained elevated over the past three months. This high pricing comes off the back of strong demand from China and suppressed beef export volumes from Australia. Pricing across both islands is tracking well ahead of last year and currently sits 10% above the five-year average. Exports rise New Zealand beef exports for the first half of 2021 were 3% ahead of 2020 volumes. While volumes to the US and Canada were down 26% and 56% respectively, exports to China rose strongly and were up by 21% on the first six months of last year. Although volumes were higher, export earnings for the first half of the year were back by 5% as a result of a stronger NZ dollar and greater volume going to lower-value markets. New Zealand beef pricing is expected to remain strong through to November. We anticipate New Zealand prices will be held up by continued strong demand from the US and China. Some risk Downside risks do exist, however, with an easing of wholesale ...

Source: Ruralnewsgroup