Jamie Mackay: The Country host on red meat prices improving after economic downturn

There's green shoots emerging for New Zealand's struggling red meat sector, according to new reports.

The Meat Industry Association claims exports to China in August were down 50 percent to $107 million compared with the same time last year.

The Country's Jamie Mackay explains further.

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Episode Transcript

Speaker 1 (00:00):
Jamie McKay hosted the Countries with us. Right now, Hey, Jamie, diet,
I hear that red meat prices they finally recovering, are
they well, they're coming off the bottom of the cycle,
according to Silver Fern Farms Chief executive Dan Bolton. Interestingly,
when we crunched the August numbers from the Meat Industry Association,
our exports to China, as Trumpy would say, we're down

(00:23):
fifty percent to one hundred and seven million. But here's
the good news. Maybe short term. The United States was
again the largest market for New Zealand red meat in
August seven percent year on year increased to one hundred
and ninety eight million. What happens next week or after
next week, we don't know. So the poor old sheep
farmers here that they've had a hell of a time.

(00:44):
They're not getting much, or they weren't getting much for
their lamb, getting next to nothing for their wall. But
lamb is up about a dollar a kilo from this
time twelve months ago. We're starting to see some green shoots.
I know, you hate that word in China due to
the stimulus packages from the Chinese government and Silver Fern Farms,
who's half owned by the Chinese, is quite optimistic ahead

(01:07):
of the new year, so Bolton. Dan Bolton went on
to say, look, China's back in the market. They're being competitive.
But here's the interesting thing. He said, the Middle East
growth for our red meat was just eye watering, and
the United States was absolutely firing on all cylinders, pushing
up farm gate price for ball beef. So we literally

(01:30):
cannot supply them enough beef at the moment due to
the drought they're having over there. So better times ahead
for the red meat industry. What about strong Will, Well,
it's funny you ask that, Heather. It's been a dog
for a number of years, but maybe there's some light
at the end of the tunnel for strong Wallet. Today's
North Island Napier Sail. The strong Will indicator was up

(01:53):
ten cents to its highest point in the past three seasons.
Clearance rate lightly lower exchange rate is happening as well,
and some of the commentary from PGG Rights and Wall
and I has read their report was that some early
U sharing is underway and the quality thus far looks
to be excellent. So all in all, those two stories

(02:14):
add up to a good news story for sheep farmers. Yeah, totally.
Hey listen, why isn't it broccoli might cost nine bucks ahead?
What's going on there? Yeah, weller, can you imagine that
twenty seven dollars a kilo nine dollars ahead. There's a
new report out from the New Zealand Institute of Economic
Research which is warning fresh vegetable prices could increase, possibly dramatically,

(02:36):
if the government doesn't move to provide a clear and
workable regulatory pathway for vegetable production. Now I've quoted those numbers,
twenty seven dollars a kilo for broccoli, nine dollars ahead.
Those are the potential of vegetable production should I say,
is cut by twenty percent as a result of proposed

(02:57):
regulations aimed at reducing night drogen runoffs. So this report
draws on research estimating that a twenty percent reduction and
vegetable supply should these regulations come, and could push vegetable
prices up by at least twenty percent, possibly one hundred percent.
So yeah, we've got to tread warily on that one.
On the other problem we've got with vegetables, Heather, is

(03:19):
that some of our best vegetable growing land in this
country has now growing houses A very good point, Jamie.
Thanks very much, mate, Jamie McKay, host of the Country.
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