NZ red meat exports: Subdued September returns reflect complex global conditions

The Meat Industry Association says while there is still demand for red meat, supplies have been constrained in recent months.

Relatively subdued export returns for New Zealand red meat in September reflect the complex dynamics of the global meat trade.

The red meat sector exported products worth $564 million during the month, down 8% from last September, with lower production levels affecting volume.

The US was the largest export market at $143m, down 5%, followed by China, which dropped 41% year on year to $106 million.

Meat Industry Association chief executive Sirma Karapeeva said there was demand for New Zealand red meat, but lower production levels affected export returns.

“The most noticeable trend for the month and the third quarter was the drop in the volume of exports compared to last year,” she said.

“This appears to be largely due to a drop in production over recent months.

“There has been less meat produced and available for export.”

Karapeeva said in general, there was still demand except perhaps in China, but supplies had been constrained in recent months.

“Between January and May, beef production was up 4% on the same period last year and sheepmeat production was up 6%.

“However, between June and August, both beef and sheepmeat production were down by 24%.”

Karapeeva said the opportunity to target a large range of markets and those with strong demand helped companies to mitigate fluctuations.

There were increases in both sheep and beef exports to Canada, up 71% to $40m, to the Netherlands up 48% to $30m, and to the UK, which grew 51% to $25m.

While beef exports to the US fell 4% by volume in September to 8244 tonnes, the value increased 15% to $90m.

The average value of New Zealand red meat exports to the US also grew from $9.14/kg to $10.92/kg.

The volume of sheepmeat exports to the UK increased by 36% to 1806 tonnes, but the value was up 46% to $18 million.

Similarly, sheepmeat exports to the EU were up 12% by volume to 3086 tonnes, but the value was up 23% to $55 million.

Sheepmeat

Overall, sheepmeat exports were down 16% by volume to 16,238 tonnes for September and 14% for the quarter to 58,685 tonnes.

Export values fell by 7% in September to $183m, and by 10% for the quarter to $604m.

Sheepmeat exports to the US were down 2% by value in September to $37 million.

Beef

Beef export volumes were down 9% for the month to 28,149 tonnes, and by 19% for the quarter to 94,807 tonnes.

Export values fell by 2% for September to $252m and 12% for the quarter to $868m.

Fifth quarter

Fifth-quarter exports were worth $130m in September, down by 19% year on year.

There was a 52% drop in the value of fifth-quarter exports to the US to $16m.

This was largely due to tallow exports dropping by $10m, and continued the trend in recent months of tallow exports shifting to Singapore.