She said the price spike came down to global demand for red meat.
“New Zealand exports most of our beef, 80-odd per cent, and our biggest market, actually, the most volume is going over to the United States, where their cattle herd is at sort of multi-decade lows.
“As they look to rebuild their herd, they’re short of this lean trim product, which is essentially the same as our beef mince in the supermarket, and so our local retailers are having to pay more to get hold of that product because they’re competing against global buyers, and that’s really pushing those mince prices up.
“What’s happening with that US beef market at the moment is directly impacting what we’re paying for mince here.”
She said prices could stay high for several years while the US herd recovered, and that could change Kiwis’ buying habits.
She expected shoppers to turn to cheaper proteins, such as pork and poultry, or buy less mince and bulk it out with vegetables to make it go further.
High beef prices are also hitting the bottom line of McDonald’s New Zealand, a chain usually known for value.
Last year, McDonald’s used 6000 tonnes of locally sourced beef for sale domestically, and exported nearly 30,000 tonnes, making up about 10% of New Zealand’s total beef exports.
Simon Kenny, McDonald’s NZ’s head of impact and communications, said the chain served 70 million people a day globally, using 2% of the world’s beef.
Price swings locally could have a material impact on the operating costs of its restaurants.
“Like everyone’s seen in the supermarkets, beef’s been one of the biggest ones,” he said.
- RNZ
