The report, Beef in 2014: Demand bright, local supply tight, expected New Zealand beef production to be lower in 2014 because of the high cow kill in 2013 as a result of the drought.
That low supply, combined with high international demand, should push prices up.
The United States’ declining beef production would also work in NZ’s favour.
Growing competition from India could cause issues in other markets though.
Report co-author, Rabobank animal proteins analyst Matt Costello, said NZ’s beef production was likely to be limited because of the expansion of the dairy herd, though beef cattle numbers were not expected to decline greatly in the coming years.
The rapid incremental growth in dairy numbers witnessed over the past decade was expected to slow as pressure from suitable land availability and increasing emphasis on environmental regulations grew.
