August 17, 2009

New Zealand beef exports tumble

Exports to the US - NZ's largest market - fell 17 percent year-on-year to 11,480 tonnes swt. So far, 75 percent of NZ's exports to the US consisted of manufacturing beef. Beef volumes to Japan and Korea fell 14 percent and 4 percent, respectively to 2,337 and 2,779 tonnes in July. In contrast, beef exports to Canada rose 25 percent for the month to 1,538 tonnes swt, while shipments to Taiwan increased 6 percent to 1,810 tonnes.

Demand for NZ beef in the US has been affected due to rising NZ$ - up 17 percent from the beginning of the year to average 64US cents in July, and the increased slaughter of dairy cows in the US in response to poor milk prices. As a result, New Zealand processors paid 16 percent less for cows in July compared to a year earlier.

New Zealand beef exports for the fiscal year so far (October 2008 to July 2009) were 5 percent higher than the previous year at 329,254 tonnes swt. Exports over the same period to the US and Canada were 5 percent and 45 percent higher than the previous year, with cow slaughter 31 percent higher.