May 16, 2006

New Zealand's beef exports fall in its traditional markets

New Zealand beef exports during April fell 19 percent over the same period last year, to 34,200 tonnes, while exports for the first four months of 2006 fell 17 percent, to 139,400 tonnes, according to Meat & Livestock Australia (MLA).

According to Agri-fax, New Zealand's low beef production contributed to the overall fall in exports. In addition, shipments to its traditional markets were subdued as supplies were diverted to Russia and North Africa due to a ban on Argentinean beef.

NZ beef shipments to the US during April were 23 percent lower than the same period last year, while shipments for the first four months of the year were down 12 percent.

This fall stems from a lack of demand from the US importers anticipating the seasonal surge in New Zealand's cow slaughter. Oversupply in the US beef market has also hampered exports.

Japan was the second largest destination for New Zealand beef in April, despite exports tumbling to 14 percent, to 3,900 tonnes. Shipments for the first four months of 2006 were down 10 percent. 

Beef demand in South Korea was strong in April, due to the continued delay in the re-entry of US beef which increased exports by 7 percent, to 3,300 tonnes.

However, the long-held expectation that the US would re-enter the market in June have slowed exports for the calendar year to date, and volumes were 30 percent below the same period last year, at 14,600 tonnes.