Exporters see good beef market

Press, 11 April 1979, Page 31

Exporters see good beef market

?>A Wellington New Zealand meat exporters are confident that the buoyant demand for beef will remain for some time in the main beef markets.

The chairman of the Meat Exporters’ Council (Mr R. C. Cushen) said the conservative view was at least three years and the more optimistic view five vears. "Reliable sources in New Zealand and overseas .predict a continuing demand for New Zealand beef in North America, particularly manufacturing grades,” tie said. “There gfe also signs of increased consumption in Japan and North Korea.

“The American cattle herd will still decline inspire of predictions of a ’ower slaughter in 1979. Fpr the cattle herd in America to remain static about tile present level of HIM head the slaughter ("if cattle must reduce from the present 44M a year to .about 37M.

“ -“The best estimates indicate this is unlikely to occur before 1980. The building up of the United States beef herd is, in our Opinion, largely dependent ort the availability of cheap grain. the United Suites farmer find conditions favourable for rebuilding the beef herd it will most, likely be a slow jiroeess. Hepce our confidence that the American demand for imported beef toil continue to remain at vre present high levels jrid it is likely that a further firming of prices may oljtur over the next three to five years.

“It is significant that the beef herds in Australia and New Zealand, the largest suppliers of beef to North America, are declining and could reduce further. The obvious conclusion is a greater demand or a decreasing supply of livestock.

“The Meat Exporters’ Council believes that New Zealand’s beef herd is already too small and there is a very strong argument for the Government to introduce and retain at a sufficient level measures to ensure a much more stable beef production.”

Mr Cushen said an adequate incentive had to be provided urgently, for the retention of dairy calves. The guaranteed prices offered in recent seasons had been insufficient to

influence farmers’ decisions.

At existing export prices, if 40 per cent of the present bobby-calf kill could be retained and matured, in two years time their export value would be S2OOM. “The Meat Exporters’ Council reaffirms its belief that on the basis of current information the prospects for beef in quantity and price are excellent for the next three to five years,” said Mr Cushen. “The council believes there is an optimum balance of export beef and lamb production for New Zealand. “That level is about 350,000 tonnes of .lamb and 250.000 tonnes of beef. At present levels of beef production there is room for expansion.”