Capitalising on Tailwinds Through to 2025: Extracting More Value and Supporting Sustainable Beef in New Zealand
The New Zealand beef industry has grown exports by 94,000 tonnes over the past five years and enjoyed a golden run of pricing, supporting healthy profits for the beef industry.
But change is coming for the industry. The Paris Agreement is driving global markets to reduce supply chain emissions, the majority of which occur at the farm level and represent scope 3 emissions for companies downstream in the supply chain. New Zealand is experiencing these market signals via increased regulatory pressure. Afforestation, plus fresh water and greenhouse gas (GHG) emissions regulations are expected to drive a 4% decrease in New Zealand beef production over the next three years, a total reduction of 25,500 tonnes between 2023 and 2025. Furthermore, processors will be faced with an additional estimated 300,000 bobby calves to process from 2023. Solutions are needed to address this issue.
Strategic investment by the beef industry will be required to reduce supply chain emissions, and to capture greater value from the beef supply chain. The dairy and beef supply chains will need to work together to manage bobby calf numbers. The bobby calf issue presents an opportunity for the beef sector, if it is willing to invest in new initiatives. This report will take a closer look at the industry’s success over the past five years and outline some potential solutions that build on this success.
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Where to go from here
Genevieve StevenAnalyst – Agriculture Read more