New Zealand beef and veal production during October increased 1% year-on-year, to 38,896 tonnes cwt, despite a 7% fall in total slaughter, as an increased proportion of cows offset a decline in calf slaughter (StatisticsNZ).
For the calendar year to October, NZ beef and veal production was back 1%, to 524,988 tonnes cwt. While there had been little change to overall production volumes, there was a large shift in the slaughter composition, with a 14% fall in the number of male adult cattle and a 7% fall in calves, being countered by a 23% increase in cows. Drought through key beef producing regions of the east coast in previous years contributed to the lower number of male cattle available for slaughter, while growth in the dairy industry over the last few years has resulted in larger numbers of dairy cows culled annually.
NZ beef and veal exports for January to November were up 2% year-on-year, to 325,824 tonnes swt, with the US, primarily a manufacturing beef market, taking around 47% of total shipments (NZ Meat Board).
Despite initial fears that the US Co-operatives Working Together (CWT) dairy herd retirement scheme would increase domestic US beef supplies, thus lowering imported beef prices, the increased number of dairy cows slaughtered (224,000 head) has been largely offset by a 289,000 head drop in beef cow slaughter this year.
However, prices in NZ$ terms have been affected by the soaring value of the NZ$ – currently trading at around 30% higher than the same period last year (Infoscan). Direct to processor prices for 220-245kg NZ cows during November averaged about 42% lower than the corresponding period last year (NZ Agrifax).
Source: MLA.com
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