Farmgate beef cattle and sheep prices reached record levels in August in New Zealand and have continued to climb, with the AgriHQ average indicator price for a prime steers reaching NZ$8.85/kg, informed Farmers Weekly.
National figures reveal that after 44 weeks of the 2024-25 season, the cattle kill is 4.7% down year on year. The number of steers and cull cows processed was back 9.5% and 5.6% while the bobby calf kill was down 18% or 96,000 head.
A shortage of cattle over winter is reflected in high saleyard prices, with the AgriHQ saleyard indicator price 40% higher than the four-year average for August. This equates to an increase of more than NZ$1/kg live weight.
The global shortage was reflected in NZ’s export beef volumes for July which were the lowest since 2017 but hit a record average export price of NZ$11.20/kg.
Global demand for NZ beef remains high driven by the United States while China remains subdued, says the report.
Based in Rabobank analysis, Farmers Weekly notes safeguards against Australian beef have been reached in China and South Korea and are close to being triggered in the US. When predetermined import volumes are reached, tariffs of 12% to 24% are imposed.
Sheepmeat prices have also reached record levels with the AgriHQ indicator price breaking the NZ$10/kg barrier for the first time in August, about $3/kg ahead of the same time a year earlier.
The average export price for lamb hit a record NZ$14.71/kg in July with the European Union the main driver.
While the South Island winter kill was up 50% due to better feed and pricing incentives, the total kill at the end week 44 of the season was 15.2 million, 1.22 million down year-on-year.
Expectations of tight supply and overseas demand indicate strong pricing for new season NZ lambs.
