Beef and lamb exports deliver $1.2 billion boost to farmers, exports to the US at risk as Trump threatens tariffs, and strong wool prices slip as Napier sale sees market cool.

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Beef and lamb exports deliver $1.2 billion boost to farmers

Strong export demand and higher prices for New Zealand beef and lamb will deliver an extra $1.2 billion to farmers' bank accounts this year. Agriculture Minister Todd McClay announced the forecast during a Canterbury farm visit, highlighting the primary sector's significant contribution to economic growth.

Red meat exports are projected to jump 13 percent this year, bringing welcome relief to sheep and beef farmers who've faced challenging conditions over the past six years. The export growth will provide a substantial economic boost to provincial communities across the country.

New Zealand's diverse trade network is paying dividends, with our extensive free trade agreements giving exporters multiple market options. The recently enacted European Union trade agreement has already driven a 24 percent increase in goods exports to Europe, with sheep meat playing a major role in this growth. Lamb prices have risen 20 percent over the last year, while mutton prices have surged by 70 percent.

Total red meat exports are expected to reach $10.2 billion this year as international markets increasingly seek New Zealand's high-quality, safe, grass-fed food products. McClay emphasized that New Zealand can continue meeting environmental and climate obligations without shutting down farms or sending jobs and production overseas.

 

Exports to the US at risk as Trump threatens tariffs

Agricultural exports worth billions could be at risk as United States President Donald Trump signals plans to impose tariffs on external agricultural products from April 2nd. Trade and Investment Minister Todd McClay says officials are actively gathering information and making the case for New Zealand's balanced trade relationship.

The US has become New Zealand's second largest trading partner with exports valued at $9 billion in 2024, overtaking China as our primary destination for meat products. Beef exports lead the way at $1.8 billion with total meat shipments worth $2.6 billion. Dairy products including milk powder, butter, and cheese exports reached $883 million, with an additional $338 million in casein. Wine exports to the American market were also substantial at $702 million.

McClay, who also serves as Agriculture Minister, points out that much of the beef exported to the US is mixed with American beef for hamburger chains. Any tariffs would ultimately increase prices for American consumers as the US doesn't produce enough to meet its own demand.

The government is taking a cautious approach while emphasizing New Zealand's trade resilience. McClay highlighted the country's network of free trade agreements that provide alternatives if US exports become less viable. He noted potential opportunities in markets like China and Canada, which are implementing their own tariffs against US products and may look to New Zealand as an alternative supplier.

Despite these potential alternatives, McClay acknowledged that US tariffs would impact exporters' bottom lines after what has been a very good year for dairy and meat sectors. Officials are analyzing tariff rates line-by-line, with plans for McClay to speak directly with US Secretary of Commerce Howard Lutnick in the coming week to emphasize the balanced nature of the two-way trade relationship.

 

Rabobank lifts milk forecast to $10 amid steady global demand

Dairy farmers can expect payouts to hit $10 per kilogram of milk solids for the 2024/25 season according to food and agribusiness banking specialist Rabobank. The bank has revised its forecast upward by 30 cents in its latest quarterly report, citing elevated global dairy prices despite modest supply growth.

Global milk production in the major export regions is expected to expand by just 0.8 percent year-on-year, not enough to trigger any significant oversupply. Rabobank senior agricultural analyst Emma Higgins says US supply expansion is likely to remain modest at below one percent, while production gains are also expected from Oceania and South America, largely driven by prior year declines that are easy to overcome.

New Zealand export volumes for the three months to January increased 2 percent compared to last year, with a weaker currency and stronger commodity prices delivering an extra $1.5 billion in export earnings. Total 2024 dairy exports marked a three-year high, with new record shipments to Malaysia, Taiwan, and Saudi Arabia. Chinese dairy demand is expected to improve this year but at a slower pace due to domestic economic challenges in that market.

The positive outlook for dairy has been further boosted by alleviating interest rate pressure following recent drops in the Official Cash Rate. However, seasonal dry conditions across many North Island regions and the east of the South Island are hampering milk flows in recent weeks. Without significant rain in the coming weeks, some farmers may choose to conserve feed and preserve cow conditions prior to winter, potentially ending the season early.

Despite these challenges, Rabobank maintains its expectations for milk collections across the 2024/25 season with anticipated milk production growth between 2.5 and 3 percent for the full season.

 

Strong wool prices slip as Napier sale sees market cool

Despite a full house of buyers at this week's Napier wool sale, the North Island Strong Wool Indicator has fallen around 4 percent. PGG Wrightson’s North Island Wool Manager Steve Fussell reports some downward pressure on prices, with higher coloured lambs wool the most affected category despite strong bidding.

The North Island Strong Wool Indicator now sits at 400 clean cents per kilogram, showing mixed results across different wool types and styles. Good style crossbred fleece saw a modest increase of 1 percent to $3.61 per kilogram, while average style in the same category climbed 4 percent to $3.55.

Poor style crossbred fleece showed the strongest gains, jumping 8 percent to $3.45 per kilogram. The crossbred second shear market delivered mixed results with good style 75-100mm length wool rising 7 percent to $3.77, while the same category in average style dropped 4 percent to $3.52.

The crossbred oddments category fell 3 percent to $3.04 per kilogram. In the crossbred lambs section, 27-29 micron wool dropped 3 percent, while 30-31.5 micron rose 4 percent. The New Zealand dollar is currently trading at just over 57 cents against the US dollar, down 14 cents.

The market appears to be taking a breather after steady improvements in recent months, with the North Island Strong Wool Indicator still showing significant recovery compared to the same period last year.

 

Fieldays appoints international sports event leader as new CEO

The New Zealand National Fieldays Society has appointed international events specialist Richard Lindroos as its new CEO, bringing over 20 years of global sports event management experience to the agricultural showcase. 

Lindroos joins the Society after building an impressive career across both public and private sectors, with significant experience at major global organizations including FIFA, IMG, and Supercars. He replaces Peter Nation who departed the position in December last year.

The incoming CEO expressed enthusiasm about leading what he described as an iconic organization at a significant point in its history. 

Fieldays Society Board Chair and President Jenni Vernon emphasized that Lindroos was the obvious choice for the position. The Board recognizes that Fieldays holds a special connection for many New Zealanders, and Richard's experience combined with his enthusiasm for the industry made him the standout candidate to lead the organization through its next phase.

Lindroos will step into the role on April 7, three months before the 57th Fieldays event scheduled for June 11-14 at Mystery Creek Events Centre.

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