Rabobank 'keeping an eye' on coronavirus' impact on red meat

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The coronavirus outbreak is causing major disruption to China, which will influence New Zealand's red meat sector says Blake Holgate.

Rabobank's animal protein analyst spoke to The Country's Jamie Mackay about his latest Beef Quarterly report, which takes a look at how Covid-19 and other factors are affecting the red meat market.

"Coronavirus is certainly the dominant theme at the moment and very much a moving feast" said Holgate.

"Trying to keep pace with some of the implications both from that disruption to the supply chain to the blockages at the port, moving product out to consumers and equally the impact on demand through reduced activity in the food service industry is something we're very much keeping an eye on."

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Price-wise all proteins had "taken a hit", and that was not just because of coronavirus said Holgate.

"We already had a pricing correction start to occur in December as Chinese authorities took a number of measures to reduce meat prices there domestically ... and then we come into January and February and ... pretty significant dry conditions saw the supply of stock increase more than you'd normally expect this time of the season."

"So prices were already looking for that fall and then coronavirus on top of that has all created a bit of a perfect storm."

Also in today's interview: Holgate looked at how rain in Australia could result in a "bounce-back" for New Zealand red meat exporters.