Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

US burger demand bodes well for NZ beef farmers: economist

US burger demand bodes well for NZ beef farmers, economist says

By Tina Morrison

April 15 (BusinessDesk) - A trend towards eating out in the US, which saw sales at restaurants and bars overtake spending at grocery stores for the first time last month, bodes well for New Zealand farmers who produce beef for hamburger patties, an economist says.

The US is New Zealand's largest beef market, accounting for 51 percent of the nation's $2.65 billion of beef exports in the year through February, according to the latest trade data from Statistics NZ. Retail sales data released in the US yesterday showed younger Americans are more likely to eat out at fast-food restaurants, helping restaurant and bar sales overtake grocery for the first time since the data began in 1992, Bloomberg reported.

"Beef farmers will be rubbing their hands together with millennials overtaking baby boomers in dining out and driving quick-service restaurant sales activity," ANZ Bank New Zealand rural economist Con Williams said in a note. "This bodes well for beef burger consumption in New Zealand's largest market and when combined with a hopefully weaker NZD/USD should be good for returns."

The uptick in demand from food-service operators, some of which is reflecting an increase in more expensive 'gourmet' burger offerings. Rising demand is particularly positive for beef, as it accounts for nearly a third of overall meat protein sold by food-service establishments by volume, Williams said. Lagging behind beef is chicken with a 30 percent share, followed by pork at 20 percent and seafood at 11 percent.

A decline in the New Zealand dollar against the greenback will also help local farmers, he said.

The New Zealand dollar, which recently traded at 75.08 US cents, will fall to 70 cents by the end of the year, according to the median forecast of 21 currency traders, strategists and economists surveyed by BusinessDesk at the end of March, all of whom expected a decline. It dropped 3.7 percent in the first quarter of this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




REINZ May Data: House Price Rises Continue; Auckland Hits New Record Median Price Again

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand... More>>

Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>



Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>