Update

New Zealand agribusiness June 2025: A strong price setting to start off winter

5 June 2025 11:00 RaboResearch

Here are the main highlights for some of New Zealand’s key commodities this month. The full report covers the developments to watch in the upcoming weeks.

Cows

Here are the main highlights for some of New Zealand's key commodities and economic influences for this month. The full report provides an overview of the developments to watch in the upcoming weeks.

    Dairy: New season milk prices have been announced and, at this stage, suggest another profitable season ahead. Firmer commodity markets and a weaker New Zealand dollar versus last year have supported rising farmgate milk prices. Beef: Beef prices remain strong for New Zealand producers, driven by tight domestic supply and robust US demand, while Chinese demand lags. Cow prices have surged, reflecting processor demand and delayed culling. Sheepmeat: Lamb prices surge on the back of tight supply, mainly in the South Island. Average export values are strong year-on-year, driven by robust UK and EU demand, while Chinese demand is starting to improve. Farm inputs: Urea prices declined sharply month-on-month in May. News of China’s return to the export market, following 18 months of limited exports, helped to somewhat ease market concerns of tightening global supplies. Interest rates and FX: The RBNZ cut rates in May, as expected, but signalled that the end of the cutting cycle could be approaching. RaboResearch is forecasting one more 0.25-percentage-point cut to arrive in August. Oil and freight: Crude oil prices rose in May, but OPEC+ has announced another big round of production increases that could cap further rallies in prices. A 90-day tariff reduction between the US and China could pressure container rates higher in the short term.

Disclaimer

This publication has been prepared by Rabobank New Zealand Limited and Coöperatieve Rabobank U.A. (New Zealand Branch) (Incorporated in the Netherlands) (collectively referred to as ‘Rabobank New Zealand’). Read more