New Zealand Beef Sales Expanding

WASHINGTON - Feb 14/06 - SNS -- New Zealand's total cattle slaughter is forecast to increase 4% to 735,000 metric tons (MT) in 2006, allowing beef exports to expand 5% to a forecast 625,000 MT, according to the U.S. agricultural attache for the country.

"Higher adult cattle slaughter rates resulting from increased calf retention for beef production in 2004 is the dominant factor influencing increased beef production," the agricultural attache said. "Beef breeding cow numbers continue to trend downwards, with a forecast decline of 2% in 2006.

"This is the result of the steady conversion of farmland to other uses, particularly dairy and lamb. This figure is unchanged from Post's earlier forecast. Despite this, New Zealand's beef exports continue to grow, fueled by increasing quantities of beef sourced from New Zealand's expanding dairy herd."

More uncertainty has been created in international markets following the Japanese reinstatement of the ban on U.S. beef. New Zealand's beef industry anticipates the re-entry of U.S. beef into Japan during 2006. The New Zealand industry, however, is not overly concerned about the trade impact of this.

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