August 24, 2010
 

Meat exports shift focus to developing markets

The global financial crisis has increased the reliance on meat markets in emerging markets, as consumers in traditionally high-value markets trade down the value of cuts they buy, according to a Rabobank report.

Europe's expected average economic growth of just 2.1% through until 2015 limited the potential for further growth, it said.

It was a similar story for the US, but this was in contrast to growth of 8% a year in China and India through until 2015. Indonesia, Malaysia, the Philippines, Singapore and Thailand were expecting annual grow of 5%, and the Middle East and Africa 4%.

Meat consumption in developing markets would never match that of Europe and the US, but incremental gains in heavily populated emerging markets would increase sheep-meat consumption 21% and beef 15% by 2019, the report said.

The composition of New Zealand's beef production in particular could have an impact.

While beef production was growing, most of it originated from the dairy sector and was of manufacturing quality and unsuitable to be sold as prime cuts. However, it was ideal for the cooking style in emerging markets, it said.

The issue was whether consumers in those markets would pay prices equivalent to or better than could be received from existing markets.

Most New Zealand beef exports to the US were of manufacturing quality and used in the takeaway and fast-food sectors, while lamb was sold mainly through the restaurant and food-service sector. These sectors were expected to recover more rapidly than retail grocery sales.