Dry weather and weak dairy prices underpinned higher beef slaughter rates in the first quarter, driving prices lower, but they remain strong by historical standards, Rabobank said in its quarterly beef report.
While higher domestic supply has led to a fall in farmgate prices, very high supplies from Australia have also contributed to lower prices.
North Island bull prices in the first week of March averaged $4.90kg (carcass weight), down 11 per cent from the record prices at the end of 2014, but 29 per cent higher than the same week last year.
Imported US beef prices have also eased throughout the first quarter with benchmark 90CL prices averaging US$2.12 ($2.78) a pound, although a 12 per cent depreciation of the Kiwi dollar against the US dollar since March 2014 had ensured prices remained above last year's levels.
Total New Zealand cattle slaughter for January increased by 18 per cent, year-on-year, to 285,588 head, with cow slaughter over the same period surging by 55 per cent.