July 17, 2013

China's demand for New Zealand sheep meat and beef slows

After the stranding of 1,600 containers of sheep and beef on Chinese wharves for up to a month due to certification problems earlier in May, Chinese demand for New Zealand meat has slowed.

It is taking a long time for Chinese importers to process the containers and New Zealand is hoping the loss of market momentum will not permanently suppress the country's appetite for its red meat.

Some in the industry say a drop in demand following the backlog is only natural, and that it will take several months to see if the trade problems have put a dent in the demand from Chinese importers.

It is still not clear whether the Government has been able to get a green light for red meat to enter China in the latest trade impasse and another 1,300 containers of meat are stranded.

Two weeks ago, the Ministry for Primary Industries discovered that China had changed its meat import laws when it again refused New Zealand meat entry. China had not informed New Zealand that it had introduced new rules which require vets at the final storage point before export to sign off on shipments.

The ministry is trying to get Chinese authorities to accept retrospectively signed export certificates. The industry has not heard whether containers are moving yet and the Government could not confirm whether or not trade was flowing again on Tuesday (July 16).