NZ red meat exports hit $1.15b in May, driven by value over volume

May was another strong month for New Zealand's red meat exports. Photo / 123rf

New Zealand’s red meat sector performed strongly again during May, with overall exports worth $1.15 billion, a 6% increase year-on-year, according to the Meat Industry Association.

The US was the largest market for the month with exports worth $327 million, down 5%, but compared to very high exports in May 2024.

Exports to China continued to recover, up 6% to $240 million, while the UK rose 44% to $89 million, and Canada by 174% to $88 million, including record volumes and value for beef.

Sirma Karapeeva, chief executive of the Meat Industry Association, said a lift in key meat export prices was being driven by tighter beef and lamb production globally.

“While the volume of exports for both sheepmeat and beef was down compared to last May, there was an increase in export value, due to high per kg values.”

Karapeeva said this reflected the red meat sector’s continued shift from volume to value, in line with an ambition to move further up the value chain.

She said it also aligned with the latest Situation and Outlook for Primary Industries (Sopi) forecast, which projected that meat and wool export revenue would rise by 8% to $12.3 billion in the year to June 30, 2025.

“The red meat sector continues to be a strong driver of economic growth for New Zealand, particularly considering this very good performance is off a lower base than other sectors, such as dairy.

“We’re hearing from red meat processors that margins remain tight.

“That means that farmers are receiving the lion’s share of returns, which is great news for rural communities.”

Lower exports to the US were due to a 22% drop in beef volumes to 18,401 tonnes, but the value dropped only 8% to $227 million.

Overall, beef exports to the US during May were still above the average monthly volume for the last five years.

Karapeeva said the drop in sheepmeat and beef export volumes could partly be due to reduced supply, the result of a combination of climatic conditions and land conversion to forestry.

“While production during the first quarter was slightly higher than production during the first quarter last year, there was a sharp drop in April with nearly 18,000 tonnes less beef and 9000 tonnes less sheepmeat produced compared to last April.”

Listen to Jamie Mackay interview Sirma Karapeeva on The Country below:

Sheepmeat

Overall volumes of sheepmeat exported dropped 11% compared to May 2024 to 34,360 tonnes.

However, the value increased 18% to $451 million.

The average value was $13.14/kg compared to $9.85/kg last May.

Sheepmeat volumes to China dropped 17% to 12,974 tonnes, but the value increased by 9% to $93 million.

Volumes to the EU were down 6% to 6567 tonnes, but the value increased 19% to $132 million.

Beef

Beef export volumes were down 10% to 47,789 tonnes, but the value rose by 6% to $531 million, with the average export value increasing to $11.10/kg from $9.43/kg last May.

Canada was a standout growth market for beef, with exports of 5727 tonnes worth $65 million, an increase of 170% and 235% respectively from last May.

This was a record monthly volume and value to Canada.

At the beginning of the year, the Canadian cattle herd had dropped to its lowest level since 1988, constraining domestic supply.

Fifth-quarter

Fifth-quarter exports were down by 15% to $166 million for the month.

The three largest categories were edible offals ($37 million, down 6%), casings and tripe ($37 million, up 10%) and prepared and preserved meat ($23 million, up 5%).