US beef market poses threat to New Zealand returns this year
US beef market poses threat to New Zealand returns this year – visiting expert
The likely forced slaughter of US cattle due to drought is set to pressure global beef trade and prices, posing a threat to New Zealand beef returns, a visiting North American cattle industry expert has warned local producers.
Rabobank’s US senior animal protein analyst Don Close, who has been in New Zealand this week for a series of presentations, said forced herd liquidation in the United States – along with the risk of recessionary pressures in the US economy – would directly impact New Zealand producers.
“The US is both the dominant export destination for New Zealand beef, as well as a fierce competitor with New Zealand in other export markets, including Japan and South Korea, he said. “In addition, the United States and New Zealand, along with Australia, will potentially be fighting it out for market share in China in the future.”
(Full media release attached)