November 8, 2022

 

Export growth of New Zealand's red meat still driven by high global prices

 

 

High global prices continue to drive export growth for New Zealand red meat, with the value of exports to almost all major markets increasing during September.

 

However, there are signs of a slowdown in some key markets, according to an analysis by the Meat Industry Association (MIA). New Zealand exported red meat and co-products worth $777 million during September, a 21% increase on last year.

 

The top three markets were China ($286 million), the United States ($149 million) and the Netherlands ($29 million). High export values over the last 12 months also saw the value of total red meat and fifth-quarter exports (co-products) reach $11.5 billion in the year ended September, up 20% from the previous year.

 

Beef exports were worth $4.8 billion for the year (up 25%), sheepmeat exports were worth $4.5 billion (up 15%), and fifth-quarter exports were worth $2.2 billion (up 20%).

 

MIA chief executive Sirma Karapeeva said export volumes of both sheepmeat and beef increased in September, compared to the same period last year and were the largest volumes exported in September in recent years. However, there were also challenges in some key markets, with a large drop in the value of Japan's yen impacting consumer spending in the country.

 

Beef exports to Japan were worth $16 million, down 23% compared to last September.

 

"Beef exports to the US were also down 13% by volume compared to September 2021," Karapeeva said. "Drought in the US has seen an increase in domestic beef production and record levels of beef in cold storage in the US. That is continuing to impact beef exports."

 

The large volumes of beef that China had been importing in recent months, particularly from Brazil, also appeared to be having an impact on prices, she said.

 

"The Free on Board (FoB) value of beef exports to China in September was $9.24 a kilo, down from a record $10.54/kg in July," Karapeeva noted.

 

 

New Zealand's overall volume of beef exports rose by 3%, compared to last September, to 34,665 tonnes, with the value increasing by 25% to $338 million. Beef followed a similar pattern in recent months, with an increase in exports to China (up 37% to $152 million).

 

The volume of beef exports in the third quarter was largely unchanged from Q3 2021 at 117,659 tonnes, but the value increased by 23% to $1.2 billion. This meant that the average FoB value of beef exports was $10.31 for the quarter compared to $8.29 for Q3 last year.

 

The value of fifth-quarter exports in September was $184 million, up 19% from September last year.

 

- NZME

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