[30 May, Rabobank]

There was a positive start to the global beef sector in 2018, however building pressures had the potential to change the export market dynamics. A report by Agribusiness Banking Specialist, Rabobank, said supply pressure was growing in global beef markets due to dry weather conditions in the U.S., a surplus of animal protein in Brazil, and changes in live cattle trade out of Australia. Rabobank New Zealand Animal Proteins Analyst, Blake Holgate, said the degree to which the supply pressures continued to build would determine the extent of their impact on global markets. He added U.S. slaughter numbers were already higher than previous years, and the likelihood of forced liquidation was high. He noted that of the supply pressures outlined in report, the U.S was most likely to impact New Zealand given the significance of the U.S. as an export destination. Mr Holgate said despite New Zealand beef export volumes rising significantly in the last quarter of 2017, they rose only one percent in the first quarter this year,