New Zealand red meat exports: Drop in 2023 figures reflects global economy

Sheepmeat export volumes rose by 3 per cent but the value was down 14 per cent to $3.7 billion.

New Zealand’s red meat sector exported products worth $10.2 billion in 2023, a drop in value of 11 per cent compared to the previous year, says the Meat Industry Association.

The analysis shows that, while export volumes increased, the value fell from the record figures for both sheep meat and beef in 2022.

The Meat Industry Association’s chief executive Sirma Karapeeva said red meat exports were “a good barometer of the state of the global economy”.

The drop was mainly because of tough economic conditions and inflationary pressures in many key markets, she said.

“Consumers around the world still want to buy red meat but they are not paying as much for it.”

Karapeeva said increased supply from other exporters, including a significant increase in Australian sheep meat exports, had also had an effect.

“The top five markets were unchanged from 2022 but the value of New Zealand exports was mostly down, reflecting the overall trend.”

China remained the largest market but exports fell 16 per cent to $3.6 billion.

However, exports to the United States rose 8 per cent, to $2.5 billion, largely because of increased demand for beef.

“New Zealand’s red meat sector has a diverse export market strategy and this has helped mitigate the impact of the weakening demand and pricing in any one single market.”

Karapeeva said that with red meat sales declining in China, companies had other options and were making “sound commercial decisions”.

Exports to Japan fell 31 per cent to $388 million, 22 per cent to the UK to $361 million and 4 per cent to the Netherlands, to $347 million.

Sheep meat

Increased competition from Australian sheepmeat exports caused issues for New Zealand. Photo / Rowena Duncum

Sheep meat export volumes rose by 3 per cent to 384,239 tonnes. However, the value was down 14 per cent to $3.7 billion.

This drop largely reflected cost of living pressures in key markets but also increased competition from across the Tasman where exports increased following three years of good growing conditions and flock rebuilding.

Australian sheep meat exports rose by 25 per cent overall in 2023 and by 50 per cent to China.

China’s tariff on Australian sheep meat also dropped to zero at the beginning of 2023, meaning New Zealand no longer enjoys a tariff advantage in the market.

China continued to be New Zealand’s largest sheep meat market at 216,079 tonnes, 56 per cent of total sheep meat exports.

Volumes rose by 10 per cent but value also fell 10 per cent to $1.4 billion.

The US was New Zealand’s third largest market by volume at 27,567 tonnes but the second largest by value at $544 million.

Volume and value fell 5 per cent and 8 per cent respectively.

At $18.04/kg free on board (FoB), the US was still one of New Zealand’s highest-value markets.

The UK was the second largest sheep meat market, at 30,133 tonnes, down 7 per cent by volume and 29 per cent by value to $291 million.

The drop was mostly because of the effect of high inflation and food prices on consumer spending, with some impact from increased Australian supply following Australia’s Free Trade Agreement with the UK coming into force mid-year.

Beef

The value of beef exports dropped, despite an increase in volume. Photo / Ross Setford

The volume of beef exports increased by 7 per cent to 511,680 tonnes but the value fell 9 per cent to $4.4 billion, reflecting difficult economic conditions, particularly in North Asia, and high levels of exports from other global suppliers.

There was a significant recovery of beef exports to the US.

Drought conditions that led to high US domestic production during 2022, eased in some regions and New Zealand and Australia benefited from the increased demand with both having good quota access.

New Zealand‘s beef exports to the US grew by 46 per cent to 181,040 tonnes and 28 per cent by value to $1.6 billion.

Volumes of exports to Canada also grew by 77 per cent to 18,110 million tonnes with the value up 52 per cent to $155 million.

China remained the largest market by volume at 203,509 tonnes, down 6 per cent.

However, the weak economy, high inventory levels and large volumes of Brazilian exports saw value drop 26 per cent to $1.56 billion.

Exports to other major North Asian markets all declined, largely due to inflation and cost-of-living pressures.

Japan was down 34 per cent to $230 million, Taiwan 6 per cent to $176 million and Korea 40 per cent to $137 million.

The UK was a small but improving market.

The NZ-UK FTA came into force in mid-2023, providing New Zealand with significantly improved quota access for beef. This was reflected in the volume of exports to the UK growing by 83 per cent to 2421 tonnes, and the value growing by 93 per cent to $27 million.

Most of this growth was in high-value chilled beef, making the UK one of New Zealand’s top markets for chilled beef in 2023, with exports of 884 tonnes worth $11.8 million.

Meat Industry Association chief executive Sirma Karapeeva.

Fifth-quarter exports

Fifth-quarter exports were worth $2 billion in 2023, down 8 per cent from 2022.

The value of exports for most categories declined or only increased slightly.

Casings and tripe remained the largest fifth-quarter category of the year with exports of $383 million, down 13 per cent.

The largest market was China at $281 million, followed by Italy at $18 million and Korea at $14 million.

Edible offals were the second largest category, worth $341 million, down 4 per cent.

China was the major market at $74 million, followed by Japan at $65 million and Korea at $37 million.

Overall red meat exports for December 2023

Overall exports for red meat during December 2023 were worth $923 million, up 1 per cent on the same period in 2022.

The top markets were China with $320 million, the US at $237 million, the UK at $44 million, Japan at $42 million and the Netherlands at $25 million.

A total of 39,085 tonnes of sheepmeat was exported, up 16 per cent in volume and down 3 per cent in value to $318 million.

Beef exports were up 18 per cent by volume to 52,805 tonnes but down 10 per cent by value to $436 million.

Fifth quarter exports were down 11 per cent to $170 million.