Labour processing costs are rising and shipping costs are skyrocketing which will affect farmgate prices.
While the volume of NZ beef exports to the US was only down by 5% in January and February, there was a larger drop in the valuedown 17% to $217 million. It was likely that the exchange rate had contributed to this drop in value. At the beginning of last year, the NZ dollar was trading at about US65cents, but in the early part of this year it had gone up over 70 cents.
US stimulus package ANZ agriculture economist Susan Kilsby said people experiencing Covid-19 lockdowns in the US did not get the same level of support from the Government as New Zealanders did. But US central banks had been putting more money into circulation to stimulate the economy and keep things ticking along, as it was easier to keep an economy going, rather than retrieving it once it had fallen. This meant people had the money to buy easily prepared, higher quality beef cuts. There was still demand for NZ’s lowfat beef, which was blended with US high fat beef for the burger beef market. Kilsby said, shipping costs were skyrocketing and labour processing costs were rising which
would affect farmgate prices. Moving product in a timely manner was another challenge facing exporters. Kilsby said the Los Angeles port was congested, making it much harder to get product to shore. This was because there was a greater demand for products from China to the US. Kilsby said because Americans were unable to buy services during lockdowns, they had changed to buying products, which were taking container space. Also, many US ports were closed down during lockdowns and/or were not operating at full capacity. She said this situation was challenging for NZ, not only for beef exporters but also for the horticulture industry which was looking for space. This could go on for months and no one really knew when it would be resolved. In NZ the South Island was not being serviced so well, as containers were not flowing nicely. Kilsby predicted consumer demand would lift in the US as lockdowns were removed and sporting events and other activities were opened up, combined with the vaccine rollout. There was more optimism compared to a year ago, she said.
95
HEREFORD BULLS FOR SALE
WEDNESDAY JUNE 9th 2021 Mid/South Canterbury
Offering 30 Powerful Poll Hereford Sires
Lot 4
EBV
Birth Wt.
200D Wt.
400D Wt.
600D Wt.
Milk
Scrotal Size
Carcase Wt.
EMA
Rib
Rump
Glenbrae sale bulls
+4.8
+41
+70
+99
+19
+2.5
+67
+3.7
+0.7
+0.8
NZ Breed av.
+4.1
+33
+55
+78
+17
+2.1
+52
+3.6
+0.7
+0.8
ORARI GORGE 35 Bulls
Focused on Performance
11am Orari Gorge Station, Geraldine Graham & Rosa Peacock P: (03) 692 2853 Robert & Alex Peacock, P: (03) 692 2893 www.orarigorge.co.nz
60 Bulls
2.30pm Okawa, Mt. Somers Nick & Penny France P: (03) 303 9749 027 567 8019 Bull Videos on
Mary Taylor PH:06 8555322 E: taylors@glenbraestud.co.nz Andy & Emma Martin PH:06 8555348 E: a.emartin61@gmail.com
Glenbrae Annual Bull Sale, 1019 Mangaorapa Rd, Porangahau
Thursday 2pm 3rd June 2021
36
Practical Productive Cattle All enquiries & visitors welcome
Country-Wide Beef
May 2021