Good news for Beef Producers!
Rabobank has released its report “Australian and New Zealand Beef Industry: Looking Beyond the Price Peak”
Beef Producers in Australia and New Zealand are currently receiving record or near record prices and as a result of reduced supply in both countries, producers are enjoying the high priced environment while processor margins are being squeezed by high procurement prices and weak export prices.
Rabobank believes producers should be looking beyond the current high prices with a cautiously optimistic approach if looking to rebuild or expand in the future. While looking towards 2020, Rabobank forecast farmgate prices to gradually fall from current highs but believe this fall is likely to be less severe than what has been seen previously.