September red meat exports reflect complex global conditions

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 eight per cent from last September, with lower production levels impacting volume.

The US was the largest export market at $143 million, down five per cent, followed by China which dropped 41 per cent year-on-year to $106 million.

Meat Industry Association chief executive Sirma Karapeeva said there was ongoing 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.

“This appears to be largely due to a drop in production over recent months. There has been less meat produced and available for export.

“In general, there is still demand, except perhaps in China, but supplies have been constrained in recent months.

“Between January and May, beef production was up four per cent on the same period last year and sheepmeat production was up six per cent. However, between June and August, both beef and sheepmeat production were down by 24 per cent.”

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

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

While beef exports to the US fell by four per cent by volume in September to 8,244 tonnes, the value increased by 15 per cent to $90 million. 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 per cent to 1,806 tonnes but the value was up by 46 per cent to $18 million. Similarly, sheepmeat exports to the EU were up 12 per cent by volume to 3,086 tonnes but the value was up 23 per cent to $55 million.

Sheepmeat

Overall, sheepmeat exports were down 16 per cent by volume to 16,238 tonnes for September and by 14 per cent for the quarter to 58,685 tonnes. Export values fell by seven per cent in September, to $183m, and by 10 per cent for the quarter to $604m.

Sheepmeat exports to the US were down two per cent by value in September, to $37 million.

Beef

Beef export volumes were down nine per cent for the month to 28,149 tonnes, and by 19 per cent for the quarter to 94,807 tonnes. Export values fell by two per cent for September to $252m and by 12 per cent for the quarter $868m.

Fifth quarter

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

There was a 52 per cent drop in the value of fifth quarter exports to the US, to $16m. This was largely due to tallow exports dropping by $10m, which continued the trend in recent months of tallow exports shifting to Singapore.