New Zealand Meat in Short Supply: Prices Jumping; U.S Direct Buying From NZ and Australia Helping Farmers

The voracious United States market is gobbling up global meat supply. That includes New Zealand also. The result is --meat is going to foreign demand and domestic supply is drying up and prices are shooting up.

While the United States is shoring up stock for its favourite hamburger, New Zealanders are seeing that beef prices going up and supermarkets not able to offer the NZ meat.So they have to think twice before putting porterhouse or rib eye on the menu. For retailers, lack of supply and spiralling as much as 20 percent is a problem. That means two porterhouse steaks would jump from $10.55 to $12.66, reported 3 News. Beef and Lamb New Zealand Chief Executive Rod Slater commented he never faced this kind of a supply shortage.

Good For Framers

Globall, the grinding meat that goes into hamburgers is in short supply. It is being bought up globally by U.S. buyers from bulk producers like New Zealand. Usually, in the event of a crunch, New Zealand turns to Australia to top up supply. But the U.S. bought that market too. In Australia, supply is very tight now. But New Zealand farmers can cheer as they are getting the best price. Prices are expected to remain high until Christmas. Until then, it could be a season for sausages instead of steak.

U.S. Drought

The surge in demand from the U.S. followed the U.S. farmers' battle with two droughts and the cattle numbers dropped significantly. Australia too went into short supply. The entry of Russia into the market further boosted interest for New Zealand beef. The demand is roaring and may go on for the next 12 months, reported Stuff.co.Nz. In New Zealand too, two consecutive droughts in the North Island impacted the farmers and they are unloading the stock.

Kiwi Beef Best

Most of the New Zealand retailers prefer to sell New Zealand beef, but the current season is forcing them into look at new options. According to Sjak Roos, Bay of Plenty president of New Zealand Chefs Association, NZ beef is great but price is a problem now. NZ beef is loved because the fat content is attractive for good steaks, and quality control is also easier when sourced from a local supplier.

Roos said it may sound weird that you can buy Australian beef cheaper than NZ beef. He says in the present scenario, it might be tempting to buy Aussie meat as Australia is offering discounted prices. "If it comes in and says, here is a beef similar to Silver Fern but $3 a kilo cheaper. Over a year it can add up good money," Rooos quipped. That is what is happening now.