January 18, 2012

New Zealand: 2011 sees lower beef exports

Driven by an estimated 6% drop in production and the volatility of its currency, New Zealand's beef exports experienced a 9% decline on an on-year basis at 330,999 tonnes, its lowest calendar year total since 2002.  

Despite falling 5% on-year, the US remains the largest export destination for New Zealand's beef, reaching 148,963 tonnes to capture 45% of the market share. Most of this beef is bull and cow manufacturing beef for grinding. Exports to South East Asia (37,268 tonnes) and Japan (29,194 tonnes) also fell by 29% and 10%, respectively. Indonesian permit issues and the natural disasters in Japan are important factors in these areas. Beef shipments to South Korea increased 3% to reach 33,526 tonnes in 2011.

New Zealand's beef exports for the month of December are down 46% on-year, sitting at 18,500 tonnes. Demand is expected to increase in January as a result of strong promotional activity in the US in the lead up to the Super Bowl in early February.