Tuesday, July 5, 2022

My Daily Digest: April 1, 2021

B+LNZ report not all doom and gloom Despite some big winter lamb contracts being offered at the moment, sheep and beef farmer confidence is down, according to Beef + Lamb New Zealand’s mid-season report.

Prime lamb production is on track to be the lowest on record, mainly because of the North Island’s drought last year.

B+LNZ says farmers are wary of regulations, the encroachment of forestry into sheep country and the prospect of more unpredictable weather.

There are reasons for optimism, though. Most regions have had some rain this past week and there are initial signs that the foodservice sector, shut down by covid-19 lockdowns throughout the world, is starting to wake up again.

That’s good news for the sector that relies on the high-value table cuts to extract maximum value.

Rabobank reckons the big rains in Australia might point to steady beef returns here as Aussie farmers, still rebuilding stocks, hold on.

And with China still buying up big as it faces another African swine fever scare, maybe that optimism will translate into returns.


Bryan Gibson


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