Rabobank's animal proteins analyst Blake Holgate spoke to The Country's Jamie Mackay about the bank's latest Beef Quarterly Report which is due out tomorrow.

However, there was an elephant in the room that Mackay wanted to discuss first - Mycoplasma bovis.

"I think it's important to ... remember that 70 per cent of New Zealand's beef production does come from our dairy herd," says Holgate.

In the short-term Holgate has noticed Mycoplasma bovis has had an effect on sale yards where farmers are concerned with transferring the cattle disease. Moving forward if the disease becomes endemic in the industry "it's about how we're going to manage that."

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Rabobank's latest Beef Quarterly Report shows that production continues to grow and supply pressure is starting to mount. The potential effect of an ongoing Big Dry in the US could cause a "pinch time" in August and increase domestic production there says Holgate.

As a result of this the US could start to rely less on New Zealand imports and also look to Asia as its export market which would create pressure for our beef industry.

Also in today's interview: Blake Holgate updates the Brazilian beef market and looks at prospects for lamb.

Listen below: