High US prices push Asia to NZ beef

By LIAM DANN

US beef prices hit 10-year highs last week and although the gains for New Zealand farmers have been offset by the rising dollar there has been an unexpected spin-off.

Asian importers that usually prefer US grain-fed beef are taking an increasing interest in New Zealand product as US prices skyrocket, says Meat New Zealand chief executive Mark Jeffries.

Jeffries has just returned from a marketing mission to Korea, Japan, Taiwan and Malaysia.

Asian consumers appeared to be increasingly prepared to set aside their prejudice against our grass-fed beef, he said.

"They are starting to experiment in restaurants."

If prices stayed high it would provide a fantastic marketing platform for New Zealand beef, he said.

The record US prices have been driven by a huge shortage of low-grade beef for grinding.

Imports of live cattle from Canada are still banned following that country's BSE scare in May.

The wholesale price for bull beef had risen 35 per cent in the past 12 months, Jeffries said.

Factoring in the effects of the exchange rate, farmers had seen an improvement of just 8 per cent.

American industry experts are picking the domestic prices to remain at near record highs until at least the end of the first quarter next year.