New Zealand beef demand to remain strong

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 ...