New Zealand red meat exports: Global market volatility continues

New Zealand exported red meat products worth $807 million in July, a 24 per cent drop on July 2022.

New Zealand exported red meat products worth $807 million in July, according to an analysis by the Meat Industry Association (MIA).

The figures represented a 24 per cent drop on July 2022, which had record exports of $1.1 billion for the month, due to a catch-up in processing after Covid-related disruptions.

MIA chief executive Sirma Karapeeva said the results were in line with previous July exports from 2016-2021, but sheepmeat markets in particular were under significant pressure.

“This big drop is a short-term impact from the very high export volumes last July, which were largely a result of Covid-related disruptions in the first quarter.”

Karapeeva said that resulted in a 33 per cent increase in sheepmeat exports compared with July 2021, and was the largest July export volume since 2008.

“However, while this July’s drop in sheepmeat was largely due to short-term factors; overall, we are also seeing a long-term trend for a reduction in the volume of sheepmeat exports and an increase in beef exports.”

This was due to the decline in the sheep flock and the increase in cattle numbers — for both beef and dairy, she said.

“Productivity gains in the sheep sector has meant that the drop in sheepmeat exports has not been as significant as the increase in beef exports.”

China remained the largest market for the month but recorded the most significant drop in overall exports for both beef and sheepmeat, down 45 per cent to $247m.

Exports to the US were up 25 per cent from last July, to $231m, with beef in particular recovering from very low 2022 levels.

Canada was the third-largest market for the month, with a significant surge in exports, up 98 per cent from last July to $35m.

This was driven mainly by record beef exports.

Sheepmeat

Overall, year-on-year sheepmeat exports were down 25 per cent by volume to 24,677 tonnes and 34 per cent by value to $249m.

However, exports last July were the highest for a number of years, so the 2023 figures were also in line with other recent July results.

The largest drop in sheepmeat exports was to China, down 31 per cent by volume to 12,148 tonnes and 45 per cent by value to $74m.

Exports to most other markets declined from the high levels of last July, but exports to the US increased, up 33 per cent by volume to 2571 tonnes and 6 per cent by value to $49m.

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

Beef

Total beef exports increased 8 per cent by volume compared with last July, to 46,242 tonnes but dropped 13 per cent by value to $405m.

The US was the largest beef market for the month, taking 18,154 tonnes worth $161m.

This was an increase of 115 per cent by volume and 81 per cent by value from the very low level of exports last July.

Beef exports to China declined, down 29 per cent by volume to 16,241 tonnes and 48 per cent by value to $124m compared with last July.

While this drop can be partly attributed to the high level of exports last July, exports were still lower than other recent July figures for China.

Fifth quarter

Fifth-quarter exports were worth $153m, down 33 per cent from last July.

There was a drop in the value of nearly all product categories, apart from pet food which was up 2 per cent from last July to $12m.