Under the phased eradication plan for cattle disease Mycoplasma bovis, 126,000 cattle were tagged to be culled, in addition to 23,000 already culled.
While that was not enough to significantly affect national milk production forecasts, further testing of the national herd for the bacterium would take place over the coming spring period.
A significant rise in infected properties, and therefore herds to be culled, would warrant production forecast revisions, the report said.
After falling steadily during April, beef schedule prices held relatively steady through May as the slide in US imported beef prices ended, and domestic cow numbers began to tighten.
At the start of June, the North Island bull price was 2% higher month-on-month, averaging $5.25kg cwt. The South Island bull price was down 1% month-on-month, averaging $4.90.
Prices in both islands were 5% lower than this stage last season.
Schedule prices continued to edge higher during May on the back of a seasonal slowdown in lambs available for slaughter.
At the start of June, the slaughter price in the North Island averaged $7.55kg cwt (3% higher MOM). South Island lamb averaged $7.35 (4% higher).
Lamb supply would keep dropping until September, which should ensure enough procurement pressure to support further upward price movement.
However, it was unlikely price gains would match those traditionally experienced over that period, the report said.