WELLINGTON - Beef farmers have been cashing in on American hunger for meat and hamburgers as the United States economy booms.
Meat NZ said that in the past three months beef earnings, particularly for manufacturing or hamburger beef, had been the highest in four years.
A North American market spokesman, Bill Joyce,
said that in the three months from the beginning of May, New Zealand bull beef had earned 20 per cent more than in the same period last year.
He expected prices to ease slightly in the next few months as big volumes of American beef came on to the market.
Next year, he predicted that American cattle numbers would have shrunk enough to reduce production, which would help New Zealand meat returns long-term.
The United States cattle population had been declining for three years as the cycle of poor returns had an impact on farmers, said Mr Joyce.
But corn prices had fallen, which meant weights were up, and production had offset the fall in American cattle numbers.
Though widespread drought was being reported in the United States, corn price futures retreated last week in expectation of rain, said Mr Joyce.
Drought saw higher cattle kills and increased meat supply, which forced prices down.
He said abundant beef production was expected in the United States later this year.
It was also forecast that competing pork and chicken would be in plentiful supply.
The increased demand for meat - and the associated improvement in beef farmers' fortunes - had been forecast some time ago, but were delayed last year by food safety scares. - NZPA
