The imported beef market remains well supplied, particularly with lean grinding beef.
The domestic and imported price spread is at an all-time record, with imported product trading at a 70¢/lb discount, however the relative price of beef has increased, meaning the percentage difference (24 per cent) is not unprecedented.
The large price spread is mainly influenced by retailers promoting hamburgers with domestic ground product, which is reportedly inhibiting demand for imported product.
With New Zealand cow slaughter hitting an all-time record last week, large volumes are continuing to be moved into the US market.
This has resulted in a short term supply glut, resulting in added pressure on imported 90CL prices. New Zealand slaughter over the coming months is anticipated to decline as the season reaches its low point, which is expected to relieve some pressure on the market.
