New Zealand Beef Targets US Demand as Dairy Initiative Expands
At the recent Red Meat Sector Conference, Greg Foran, the former chief executive of Air New Zealand and current head of US retailer Kroger, highlighted the potential for New Zealand beef sales in the American market. Kroger operates almost 3,000 stores and serves close to 11m customers.
Foran said the US beef herd was at a low level while consumer demand remained strong. He said this demand could be met only through quality imports from countries including New Zealand. Ken Bacus of the US Beef Cattlemen’s Association also described the American herd as the smallest in more than 70 years.
Bacus said his organisation did not regard New Zealand beef as a threat to domestic production. In his account, imports from New Zealand complemented US output and helped maintain beef availability on supermarket shelves.
New Zealand’s Dairy Beef Opportunities initiative was launched earlier this year with a budget of NZ$20m. It is a joint project involving Beef + Lamb New Zealand, DairyNZ, Dairy Companies Association of New Zealand and the Ministry for Primary Industries. Industry participants are providing half the funding, with the balance coming from the government’s Primary Sector Growth Fund.
Simon Limmer, who chairs the initiative’s governance group, said one of its main aims was to obtain more value from the 1.8m non-replacement dairy calves produced annually. These calves, commonly called bobby calves, are often killed at between four and ten days old. Limmer said their treatment created reputational concerns for New Zealand’s dairy industry, while global demand for protein, particularly red meat, had prompted discussion about their potential use.
The programme is intended to increase the share of calves raised from dairy farms, connect calf-rearing businesses with livestock-finishing systems, and coordinate genetic, breeding and animal-health decisions to support performance over time. Limmer said dairy farmers would continue to use sexed semen for replacement heifers, while beef sires with genetics suited to both dairy and beef production could produce animals better suited to the beef supply chain. He identified the availability of feed, land and infrastructure for growing the animals as challenges.
