NZ red meat exports reach $717 million in August as global demand lifts prices

Sheepmeat value surged 54% to $257 million, despite only a 15% rise in volume.

New Zealand red meat exports reached $717 million in August - a 22% year-on-year increase - due to strong global demand, according to Meat Industry Association analysis.

The United States was the largest overall market by value for the month, up 9% to $203m.

Exports to China continued to recover, up 39% by value to $150m, and the United Kingdom increased by 109%, to $48m.

Meat Industry Association’s chief executive, Sirma Karapeeva, said there was strong global demand and a relatively tight global supply of red meat.

The Food and Agriculture Organization of the United Nations’ Meat Price Index hit an all-time high during August.

Karapeeva said sheepmeat volumes increased by 15% from low levels last August, but value increased by 54%, with the average value of sheepmeat for the month being $13.44/kg.

She said that was slightly below the record value recorded in June but still 34% higher than last August.

“We are continuing to see strong demand from the EU for sheepmeat, partly being driven by lower EU domestic production.”

Karapeeva said that, while the volume of beef exports fell slightly, by 1%, compared to last August, the value increased by 18%.

“At $11.12/kg, it was slightly below the record levels seen earlier this year but was still 19% higher than 12 months ago.

“There are also encouraging signs of recovery in Chinese demand for both sheepmeat and beef.”

She said that any effects from the additional US tariff of 15%, which came into effect on August 7, are not expected until the September or October export data.

While the US tariff on Australian imports remained at 10%, the Australian sheepmeat volume to the US was down by 6% compared to last August, and there was also a small drop in Australian beef exports to the US.

Sheepmeat

Overall sheepmeat exports during August were 19,134 tonnes, totalling $257m.

China was the largest market by volume, increasing by 1% to 6993 tonnes with value up 29% to $49m.

It was followed by the EU, where volume rose 41% to 3558 tonnes and value by 88% to $76m.

The US was the third largest market, with volume up 20% to 2531 tonnes and value up 33% to $48m.

Meat Industry Association chief executive Sirma Karapeeva.

Beef

An overall 28,832 tonnes of beef were exported, worth $321m.

The US was again the largest beef market for the month.

Although volumes to the US fell 13% to 9585 tonnes, value was up 1% to $119m.

Beef volumes to China increased by 29% to 8619 tonnes, with value up 52% to $71m.

Canada was the third-largest beef market for the month, with exports of 2306 tonnes worth $26m.

The largest growth for beef was from the UK, where volume was up 219% to 1584 tonnes, with value growing by 289% to $19m.

UK beef production is currently tracking below 2024 levels, with one of the factors behind the increase in imports from New Zealand and Australia.

Fifth quarter

Fifth quarter exports were down slightly by 6% to $139m.

The three largest export categories for the month were blood products and glands, up 25% to $28m, prepared meat products, down 12% to $26m and casings and tripe, up 37% to $23m.