Rabobank expects that international beef markets will remain strong on the demand side. Photo / Tania Webb
Cattle slaughter volumes are down 30 per cent on last year, according to the latest Rabobank report.
Processing volumes reached 59,073 head, the lowest monthly total in more than eight years.
Beef + Lamb New Zealand chief economist Andrew Burtt said the drought had brought the slaughter forward and the numbers reflected that.
"We lost a lot of stock early on as they were culled.
"Farmers moved quickly to deal with the effects of the drought and sold stock, particularly in the North Island where 70 per cent of the cattle herd is," Mr Burtt said.
The current situation is "a bit of a hole, shall we call it" that ultimately ties back to the drought, he said.
But a mild winter brought good growing conditions and increased farmer confidence.
"It's had an impact on farmer confidence and their ability to feed animals during winter and it's picking up again going into spring," he said.
Total cattle slaughter reached 2.15 million head for the New Zealand processing season of October to July, and remains 12 per cent above the same 10-month period last year.
Globally, Rabobank expects international beef markets to remain strong.
The vehicle was damaged while later being towed and an $11k claim by the owner followed.