October 22, 2007

New Zealand beef exports shrink in September

New Zealand (NZ) beef exports have fallen on-year for the sixth consecutive month, with September shipments dropping 15 percent, to 13,304 tonnes swt (slaughterweight), figures from the New Zealand Meat Board show.

NZ beef supplies for September remained tight, particularly for manufacturing beef, contributing to the fall in monthly exports, particularly to the US.

The country's beef exports to the US fell by 30 percent compared last year Demand to 5,566 tonnes swt due to weak US$ and recent recall of hamburger patties which affected imported manufacturing beef shipments. US beef imports from NZ for the first nine months to 2007 are back 7 percent, to 138,200 tonnes swt ¨C the lowest level since 1996. Reports from Rabobank indicate that the decline has been largely pointed to lower manufacturing beef supplies, with producers holding back dairy cows in order to supply a booming dairy sector.

Japan, the second largest market for NZ beef, saw shipments for the month lift 18 percent, to 2,060 tonnes swt. This is the first year-on-year increase in shipments for 2007, with exports for the first nine months for the year back 12 percent on 2006, at 26,807 tonnes swt.