A sharp fall in the price of beef has prompted Silver Fern Farms not to activate its November Backbone beef supply contract.
International beef prices have fallen 25% in the past six weeks due to a higher United States beef kill and market reaction to record prices which peaked in July at nearly double the average for that period.
Prices have returned to more usual levels.
Silver Fern Farms (SFF) last month launched its new flagship lamb, beef and venison contracts to link specific markets and their requirements with suppliers and supply periods.
Under the agreement, farmers have the benefit of 12-month pricing, being able to lock-in in advance prices for a portion of livestock and guaranteed killing space.
But six weeks of sharply declining prices prompted SFF to not activate its beef and bull beef contract offered in November.
Contracts for lamb and venison, also released in November, were operative.
Chief executive Keith Cooper said prices for the coming year were calculated in October, but changing market conditions meant that to proceed would effectively mean SFF was underwriting returns and guaranteeing values for farmers.
"Further, it would be commercially irresponsible to enter into a contract in the knowledge that we would be making a significant loss on those transactions, thereby knowingly incurring a loss to all shareholders," he said in a statement.
Mr Cooper remained optimistic about prospects for beef, saying he expected stability to return in the New Year.
This was reflected in contract prices offered from January through to next December.
The company's market report last week said beef prices had settled at low levels and the seasonal Christmas shutdown of New Zealand and Australia beef production should assist that stability.
The price of United States beef in Korea had also fallen markedly, which lured back consumers and should remove some volume.