February 26, 2014

New Zealand's January lamb exports down 7%

New Zealand's total lamb exports for January dropped 7% over corresponding period last year at 23,809 tonnes shipped weight (swt) due to tightening lamb supplies in the country, Meat and Livestock Australia (MLA) reports.

Lamb supplies in New Zealand have been reportedly tight over the past few months after high levels of drought-induced turnoff earlier last year, according to MLA.

In addition, improved pasture growth so far this season may encourage producers to hold on to stock with the intention of finishing lambs to sell direct-to-works.

Trade to the EU is making a slow but steady recovery, with lamb shipments totalling 10,478 tonnes swt in January, back 21% on-year.

The UK accounted for 5,495 tonnes swt during the month - 22% lower than the same time last year.

Reports of strong demand for chilled New Zealand lamb in the lead up to Easter are expected to generate positive returns in the coming months.

Throughout 2013, China showed its potential as an emerging market for New Zealand lamb, although, tighter supply in 2014 is expected to see volumes to China decline in comparison. Despite this, shipments to China in January were 34% higher on-year, at 7,185 tonnes swt.

In contrast, New Zealand lamb exports to the Middle East and US declined 9% and 13% on-year, to 1,933 tonnes swt and 1,237 tonnes swt, respectively.

Boosted by higher demand from China, total New Zealand mutton exports in January were 60% higher than the same time last year, at 14,698 tonnes swt. Shipments to China during January lifted 155% on-year, to 11,229 tonnes swt, accounting for 76% of New Zealand's total mutton export volume for the month.

Exports to the EU were back 26% on the same month last year, at 1,275 tonnes swt, with the UK taking 594 tonnes swt in January, a decrease of 34% on-year.