It is forecast that slaughter numbers will rise by 1.3%, reaching 2.36m head because of a high number of dairy heifers and cows culled and an increase in bull slaughter. A rise in beef production of 1.2% year-on-year is expected.

Beef prices in New Zealand have traded in at just over NZ$4/kg (€2.80/kg) for much of the past four years, jumping to over NZ$5/kg (€3.50/kg) earlier this year.

Exports

Beef and veal exports are forecasted to grow by 1.2% but the value of these exports is to rise by 24.5%, according to the update. Over the past six months, NZ beef and veal export returns have reached a record high of NZ$1.6bn (€1.1bn), a jump of NZ$480m (€341m) over the same period in 2013-14.

Big markets for New Zealand include the USA and China, both of whom Ireland are chasing to do business with. These are particularly attractive destination for manufacturing beef.

The update states that demand for New Zealand beef in the US will hold steady due to low domestic production in the States. Chinese demand will also remain strong.

New Zealand cattle

New Zealand cattle tend to be much smaller than Irish beef bred cattle due to ongoing use of traditional Hereford/angus and shorthorn breeds with little use of the continental breeds that are popular with Irish suckler herds.