August 17, 2007

New Zealand beef losing global market share

New Zealand's beef and veal exports started 2007 strongly but has been slowing down since mid-year, according to the Rabobank.

For July, the country's beef exports fell 5 percent on-year to 29,552 tonnes swt, due to tighter supplies and lower shipments to major markets such as the US, Japan, and South Korea, according to the New Zealand Meat Board.

Exports were also affected by the strengthening NZ dollar. Beef shipments to the US during July fell 16 percent on-year, to 13,604 tonnes swt although volumes to Canada doubled to 2,659 tonnes swt.

Shipments to both Japan and South Korea declined during July due to a partial lifting of restrictions on US beef in both countries.

Exports to Japan fell 8 percent on July 2006, to 2,672 tonnes swt while shipments to South Korean in July fell 30 percent to 3,266 tonnes swt.

Although the outlook on the North American markets remain positive, it is dependant upon the volumes of beef the US would be allowing for other major beef exporters such as Argentina, Uruguay and Canada.