Beef Beef cut pricing seems to be comparatively stable at present but at high prices. Strong Global demand for NZ beef continues to support prices. The Beef Schedule for both Prime Steer (PS) and Manufacturing beef remains steady all be it $1/kg higher than same time last year and well above the last five year average. Supply of PS cuts tight as Cow takes preference for animal welfare reasons. Plant throughput remains compromised. Steaking and Round cuts: Pricing is expected to remain at similar levels. We have just had a solid increase on the price of fillets prices as European demand for this is very strong at present. Manufacturing/Trims: Price increases have stalled but at high levels and maybe temporary. The US cow kill is set to slump and grilling demand set to increase, the US beef prices are expected to lift. Any resurgence in demand from China will support this. Pork Imported Pork Europe Imported pork pricing into NZ has long been to cheap and ultimately unsustainable with European Pork producers losing over 40 Euro/pig for an extended period. Europe has subsequently reduced pig numbers. Many Spanish and German exporters are now not willing to send ‘high risk’ products (this that may contain glands or overweight pieces) to NZ because of MPI inspection failures at our borders. Feed costs have skyrocketed. Imported Pork is now getting more expensive as stock levels within NZ tighten and then as the newer shipments begin to arrive. USA Of interest to us the St Louis rib pricing still continues to firm. NZ Pork Prices are still relatively stable with only a small increase for early June. Costs can’t continue to be absorbed. Pig feed has about a 4:1 conversion rate compared to chicken of about 1:1. Beef Schedule This graph shows how the beef schedule is tracking season to date. It is well above this time last year and the 5 year rolling average. NZ Pork industry to face more challenges as new Animal ‘welfare’ rules are about to be introduced and phased in over next five years. The Government has agreed on a five-year timeframe to phase out the traditional use of farrowing crate and mating stall systems. Two options; the first to ban the use of the crates and the second to allow farmers to use them for a shorter period of time before and after the sow gives birth. The Government is now asking for feedback on whether farrowing crates should be banned or simply limited in their use. Farrowing crates keep sows in a confined spot during the final months of their pregnancy and while they are suckling piglets but restrict the mortality rate of piglets through crushing, starvation or hypothermia. Essentially they are the maternity wards for sows. This will require almost every indoor and outdoor pig farm to be partly or totally rebuilt which many wont be able to afford. To watch: There are some much larger than ‘normal’ pigs being processed over the next 2 or 3 months from which we may see some cuts end up in import replacement channels.
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