Strong New Zealand Dollar Causes Concern For Meat Exporters21 October 2013
NEW ZEALAND – Drought impacts are being exacerbated as a high NZ$ pressures exporters, say Meat and Livestock Australia analysts.
Tight supplies are now hurting traders finalising Easter and Christmas shipments as reports of Chinese lamb inventories reach the market.
This is coupled with prices of certain cuts rising in China but, with a strong dollar concerning New Zealand exporters, there is doubt over whether it will be capitalised upon.
Meat and Livestock Australia summarised current currency trends, stating: “The NZ$ traded at 84US¢ on Wednesday, down by around 2¢ on 1 January and up 3¢ on the average for September. In comparison, the A$ traded at 95US¢ on Wednesday, down by around 8¢ on 1 January and up 1¢ on the average for September.”
A market analyst added: “So far 2013 has been a huge year for New Zealand lamb export, with January to August shipments standing at 229,426 tonnes swt, up 17 per cent on the corresponding period last year – the largest January to August volume since 2008.”
TheCattleSite News Desk