June 2022 Introduction Ukraine/Russia war continues and the grain shortage worsens. Shanghai port is returning to normal following covid outbreak but backlog remains and global supply chains to get worse before they get better? Beef and Lamb prices remain firm with no real shorter term end in sight and being supported by a weakening NZD. Imported pork prices will increase in price significantly through the year. NZ Pork Industry faces challenges with increased costs and phasing out of farrowing crates over next five years. Bidfood remains fortunate with its strong relationships and further consolidation of our procurement program’s in place with key NZ beef, lamb and pork suppliers additionally complimented by our imported pork program partners. Lamb Lamb price increases have slowed but remain very firm and labour remains challenging. Supply has been more stable but generally pricing remains high. Pressure has come of the Forequarter price to China but yet to see any flow on NZ. You may see a supermarket specials for bone in product? BRN Shoulders require a high labour input will remain firm. The Lamb kill is running about 11% behind in the North Island and 9.5% in the South compared to same time for the season to date. Should still be lambs to process prolonging the season. Lamb Rack indicator has prices firming still while legs remain level. The Lamb schedule has ticked up in the last couple of weeks possibly signalling the usual climb through the off season about to begin. Lamb Schedule : Updated graph below indicates the lamb schedule may have bottomed out and started back up as season gets closer to finishing. The last two weeks has seen an uptick and on the increase. Poultry – Chicken Combined with recent inflation, increased fuel prices, wages, labour shortages, etc, we are not going to experience any pricing relief or any real improvement with supply issues and the order ‘shorts’ we have been experiencing in the near future. We have seen chicken processors forced to continue to rationalise and to produce a reduced range of specifications – the product that requires more labour input is the first to be cut back or made unavailable. For example whole deboned birds. Wheat is forecast to increase 42.7 percent and reach new record highs. Other notable increases will be 33.3 percent for barley, 20 percent for soybeans and 29.8 percent for oils. In the UK word is chicken could end up being as expensive as beef.
Download PDF file