New Zealand beef exports in 2009-10 are forecast to fall 3% to 362,500 tonnes swt, with the average price per tonne falling 10%, according to Meat & Wool New Zealand in its Sheep & Beef New Season Outlook 2009-10.
       
       The total value of beef exports is forecast to decline 12% to NZ$2.1 billion due to: a higher NZ$, poor demand from Japan and Korea, extreme price sensitivity among EU consumers, a continuation of the fall in cattle co-product prices - particularly for hides - and a smaller NZ herd. These factors will be partly countered by strong US demand for manufacturing beef and a recovery in the domestic economy which consumes around 20% of NZ beef production.
       
       Markets were also mixed for NZ beef in 2008-09, with an 8% increase in shipments to the US (driven by high cow slaughter as the price of dairy goods fell from record highs) but a 17% decline to the combined markets of Japan and Korea, as shipments suffered from poor demand and increased competition from US product. The EU continued as a high value market, but its contribution as a source of export income was and is constrained by high out-of-quota tariffs, with only 3% of exports heading to the EU.
       
       Lower cattle numbers this year, with the herd falling 2% (71,000 head) to 4.1 million as at June 2009, are due to three consecutive dry years impacting upon stocking rates. Export cattle slaughter is expected to fall 5% in 2009-10 to 2.2 million head as the industry attempts to rebuild the herd, assuming a drought-free year.
       
       Source: MLA Site, Sep 03,2009.