Exports: Burger demand fuels trade as US overtakes Australia to be New Zealand’s second-biggest export partner

A smaller United States cattle herd and strong demand for burgers is influencing New Zealand's trade with the US. Photo / Rawpixel, 123RF

The United States became New Zealand’s second-largest export market last year, according to new Stats NZ data.

And demand for cheap beef to make burger patties was driving much of that.

“They’re rebuilding their beef herd in the US so they need more imports,” Westpac senior economist Darren Gibbs said.

Cheap New Zealand lean trimmings were sent to the US and turned into burgers.

“The US economy has been doing well. I presume on the back of that, burger demand has been rising.”

Relative beef shortages worldwide had pushed up some prices, Gibbs added.

Meat and edible offal exports to the US were up $87 million from a year earlier, according to new Stats NZ merchandise trade data.

ANZ economist Henry Russell said demand for New Zealand meat in China had been sluggish for some time but the US was a different story.

“The beef inventory in the US has been in decline for some time.”

He said US fast-food chains liked New Zealand beef.

The American Farm Bureau Federation last year said the country’s cattle inventory was the smallest since 1951.

Trump tariffs

The new Stats NZ data emerged soon after Donald Trump started his second term as President, and brought talk of tariffs with him.

Russell said it was not yet clear if universal tariffs or targeted tariffs would be applied.

He said Trump’s tariff rhetoric was mostly aimed at individual countries such as Mexico and Canada, with whom the US had large trade deficits.

US President Donald Trump launched his second term with talk of tariffs. Photo / Getty Images

But the US deficit with New Zealand was only NZ$925m last year, Russell said.

The economists said if the US placed tariffs on all foreign nations, New Zealand would not lose any competitive advantage.

And universal tariffs would largely be paid for by US consumers.

But if Australia was spared Trump’s tariffs and New Zealand was not, that would be problematic for Kiwi exporters, Gibbs said.

Trade surplus

New Zealand in December recorded its first merchandise trade surplus in six months.

Goods exports rose by almost $1 billion last month compared to December 2023, to $6.8b.

Imports were up too, but only by $404m or 6.5%, to $6.6b.

Across the year, exports to the US reached $9b.

China was still New Zealand’s biggest export partner.

“Although the US is our second largest export partner, New Zealand ranks outside the top 50 countries from which the US purchases goods,” Stas NZ international accounts spokesperson Viki Ward said.

The US last year received 12% of all New Zealand’s exports by value.

A decade earlier, the US received just 9.4% or $4.7b of New Zealand’s total goods export value.

Merchandise exports year-on-year were up across all major markets.

Exports to China last month amounted to $342m, up 22% on a year earlier, with dairy products the biggest driver.

Exports to the US were up $82m or 11% compared to December 2023, with meat and edible offal exports alone surging by $87m.

To Australia, exports were up $64m or 8.7% compared to a year before, with dairy exports having the biggest impact.

To the European Union, exports were $110m or 39% more valuable than a year earlier, with dairy and aluminium exports well up.

And to Japan, total exports rose by $9.2m or 3.5%. Dairy products and live animal exports to Japan were also up.