ANZCO Foods Market Update - June 2025

A shorter market report than normal this month, reflecting the fact that there’s been no material change in global market conditions. It is also a reflection of our reduced sales activity, caused by our lower-than-usual production levels because of challenges on the livestock front that are impacting our business far earlier than we would normally expect heading into the winter period.

In general, North America, the UK, and Europe continue to show steady demand and good prices for our product, although we’re hearing increasing noise from customers that we’re starting to cross the line in terms of expected values on lamb, which is something we need to be mindful of during the coming weeks and months. On beef, there seems to be more upside on offer, notably in the US, although our previous expectations on pricing for manufacturing beef haven’t fully materialised, so it’s very much a watching brief as we move further into the northern hemisphere summer and the peak of grilling season.

Conversely, Japan and China remain underwhelming. While we are seeing incremental improvements in both markets related to demand and values, overall consumption is still constrained. Price increases being achieved in-market continue to fall behind competing options, particularly so in China.

Looking ahead, the next quarter will be about smart prioritisation, deciding what we sell, and who we sell it to. With limited volumes, we’re having to make some tough decisions, including temporarily stepping back from some longstanding customers we simply can’t service right now. It’s a fine balance between maintaining relationships and thinking strategically, versus maximising revenue and capturing the short-term value on offer. While this situation is far from ideal, fortunately most of our customers recognise the challenges we’re facing are not unique to ANZCO Foods or to New Zealand for that matter, so the risk of long-term damage to those relationships is likely less than it might otherwise be.

From a sales perspective, the sooner livestock numbers recover, the better. We know there is pent up demand and strong opportunities for what we have to offer, but we’re realistic and accept that this is unlikely to occur anytime soon. This will make for a challenging second-half of 2025 for all New Zealand beef and lamb processors.