New Zealand red meat sector disappointed by US lamb action

New Zealand’s red meat sector is disappointed that the United States Trade Representative has formally requested the International Trade Commission launch a safeguard investigation into US lamb imports. 

“While the move is disappointing, the sector had been anticipating some form of action and preparing for this possibility,” said Kate Acland, Chair of Beef + Lamb New Zealand. 

“This investigation is not specifically directed at New Zealand and will be carried out by the US International Trade Commission, an independent, non-partisan, quasi-judicial federal agency.  The investigation is expected to take 4-6 months.

“The process will follow defined statutory procedures, and we will be working hard to ensure New Zealand’s position is clearly understood. 

“We are working closely with our Government and officials, maintaining regular contact with New Zealand’s US partners and have engaged legal representation in Washington D.C. to support New Zealand’s involvement in the investigation. 

“New Zealand has a stable and balanced trading relationship that began 100 years ago.

“This was acknowledged and reflected in recent and regular engagements with key contacts in the US including the American Lamb Board, the American Sheep Industry Association, the Meat Import Council of America, and US government officials.”

“Our relationship goes beyond trade with strong cooperation ties over the year, including most recently through the Global Sheep Producers Forum Next Generation Programme, which brought young US sheep producers to New Zealand this week. 

Nathan Guy, Independent Chair of the Meat Industry Association, said the sector remained confident in its position that New Zealand’s exports have not caused damage, nor pose any threat to the US sheep industry. 

“Our sector produces a high-quality product that is trusted by customers around the world, including the US. 

“New Zealand lamb complements US production rather than competes with it, filling supply gaps and occupying a distinct place in the market. We maintain that any action targeting New Zealand lamb is unjustified.

“New Zealand lamb accounts for only about a quarter of US imports, and the US represents a relatively small proportion (nine per cent) of our total export volumes.

“New Zealand’s export volumes to the US have remained consistent over time, reinforcing that this is a measured, responsible and sustainable trading relationship.

“New Zealand lamb earns significantly higher returns in the US compared to the global average, reflecting its premium positioning. While we have seen some growth in export volume over the last five years, which correlates with American’s increasing consumption of lamb, the average annual volume has been just under 27,000 tonnes.

“Lamb is not a food staple in the US and only accounts for approximately one per cent of total meat consumption. This highlights the opportunity for continued market growth for both US and New Zealand.

“Therefore, New Zealand exports play a complementary role in supporting that growth, rather than displacing domestic production.”

New Zealand lamb earns an average of $21.99 per kilo in the US, compared to New Zealand’s global average of $14.00 per kilo.