November 18, 2013

New Zealand's beef export to China rises

Meat exports to China have grown rapidly from less than 1% of the total volume to 10% in just three years, according to Beef + Lamb New Zealand statistics for the year ending September.

In the past year China became New Zealand's single biggest sheep meat market, importing 131,000 tonnes of lamb and mutton, displacing the UK, which took 74,000 tonnes.

China accounted for 28% of lamb and more than half the mutton. But Beef + Lamb chief economist Andrew Burt says the average value of lamb exports to China still trails well behind returns from longer established markets.

He says the average value that New Zealand is receiving from China is a bit over half what it's getting for lamb exported to the EU.

Burt says China takes a lower-value product, while the EU takes higher value across a broad range. The US and Switzerland take an even higher value product but a smaller product range.

The average value for the US was about US$11,500/tonne, received in New Zealand, compared with US$4,800 from China and US$9,000/tonne from the EU, Burt added.

He also said New Zealand beef shipments to China also increased from 4% to 11% of total exports in the past year, but are still well behind the biggest market, the US. It took almost half of New Zealand's beef and veal exports last year. Prices however, are similar.