New Zealand's biggest beef processor is expecting farmers and the meat industry to benefit from unprecedented prices in the main export market this season, even though they will come back from current levels.
Prices for imported manufacturing beef in the United States have continued to rise after hitting record levels weeks ago.
The frustration for New Zealand farmers and exporters is that they have largely missed out on the windfall so far, because little beef is being processed and shipped at this time of year. It will be later this year or early in 2015 before beef exports hit their full stride.
Keith Cooper, the chief executive of Silver Fern Farms meat co-operative, said a price correction is inevitable, but thinks they will stay high.
"That's the $60 million question - when will that correction happen? Inevitably it will correct, but I wouldn't sit here and expect it to sit at the over three dollar level it's currently at. That's 300 US cents a pound.
"Nonetheless, even if it goes back to 2.50 - that's an all-time high, which can only be good for New Zealand beef farmers in the coming year."
The high US beef prices could result in New Zealand hitting its import quota for that market for the first time in many years, he said.
Mr Cooper expected prices to remain well above previous levels, encouraging increased exports to the US.
"To the extent that New Zealand's exports are up by around nine percent compared to the same time last year which will likely mean we are going to get close to, if not using or triggering our beef quota into the US for the first time in a long number of years.
"So, in this calendar year I would expect that we will get very close to filling the quota, and then we start again from the first of January. But there could well be some pressure on or some management required around ensuring we stay within our quota, which may stymie some processing demand in that pre-Christmas period."
New Zealand's beef quota to the US is about 213,000 tonnes a year. Any shipments above that would trigger a hefty tariff.
