USDA forecasts NZ beef herd shrinkage in 2025
These numbers are being forecasted primarily due to the following factors impacting the sector: a decline in on farm profitability, low farm gate prices and a warmer winter leading to favourable pasture production.
New Zealand is a major beef producer and exporter, typically the sixth largest exporter in the world, or 5.4 percent of world volumes. The beef herd spreads throughout the country, with 70% situated in the North Island and 30% in the South Island.
The New Zealand cattle sector is unique because of its integration with the huge dairy industry, and approximately 70% of the adult cattle slaughtered each year and 100% of the calves slaughtered have their origin in the dairy industry.
The national dairy herd comprises 62% of the total national cattle herd, with beef breeds accounting for 38%.
With New Zealand’s temperate climate, beef cattle production is almost entirely from pastoral grazing, with only one major feedlot in Canterbury. As a result, most exports are grass-fed beef. Since the beef industry is pasture-based, and the dairy industry has made a huge contribution to beef production (for example, culled dairy cows), beef production and exports are highly seasonal in New Zealand.
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