May another strong month for New Zealand red meat exports

New Zealand’s red meat sector performed strongly again during May, with overall exports worth $1.15 billion, a six per cent increase year-on-year.

The US was the largest market for the month with exports worth $327 million, down five per cent but compared to very high exports in May 2024.

Exports to China continued to recover, up six per cent to $240 million, the UK rose 44 per cent to $89 million and Canada by 174 per cent to $88 million including record volumes and value for beef.

Sirma Karapeeva, chief executive of the Meat Industry Association (MIA), said a lift in key meat export prices was being driven by tighter beef and lamb production globally.  “While the volume of exports for both sheepmeat and beef was down compared to last May, there was an increase in export value, due to high per kg values.

“This reflects the red meat sector’s continued shift from volume to value, in line with our ambition to move further up the value chain.

“It also aligns with the latest Situation and Outlook for Primary Industries (SOPI) forecast, which projects that meat and wool export revenue will rise by eight percent to $12.3 billion in the year to 30 June 2025.

“The red meat sector continues to be a strong driver of economic growth for New Zealand, particularly considering this very good performance is off a lower base than other sectors, such as dairy.

“We’re hearing from red meat processors that margins remain tight. That means that farmers are receiving the lion’s share of returns, which is great news for rural communities.”

Lower exports to the US were due to a 22 per cent drop in beef volumes to 18,401 tonnes but the value only dropped eight per cent to $227 million. Overall beef exports to the US during May were still above the average monthly volume for the last five years.

“The drop in sheepmeat and beef export volumes could partly be due to reduced supply as a result of a combination of climatic conditions and land conversion to forestry”, says Ms Karapeeva.

“While production during the first quarter was slightly higher than production during the first quarter last year, there was a sharp drop in April with nearly 18,000 tonnes less beef and 9,000 tonnes less sheepmeat produced compared to last April.”

Sheepmeat

Overall volumes of sheepmeat exported dropped 11 per cent compared to May 2024 to 34,360 tonnes. However, the value increased 18 per cent to $451 million. The average value was $13.14/kg compared to $9.85/kg last May.

Sheepmeat volumes to China dropped 17 per cent to 12,974 tonnes but the value increased by nine per cent to $93 million.

Volumes to the EU was down six per cent to 6,567 tonnes but the value increased 19 per cent to $132 million.

Beef

Beef export volumes were down 10 per cent to 47,789 tonnes but the value rose by six per cent to $531 million, with the average export value increasing to $11.10/kg from $9.43/kg last May.

Canada was a standout growth market for beef, with exports of 5,727 tonnes worth $65 million, an increase of 170 per cent and 235 per cent respectively from last May. This was a record monthly volume and value to Canada.

At the beginning of the year, the Canadian cattle herd had dropped to its lowest level since 1988, which has resulted in constrained domestic supply.

Fifth quarter

Fifth quarter exports were down by 15 per cent to $166 million for the month. The three largest categories were edible offals ($37 million, down six per cent), casings and tripe ($37 million, up 10 per cent) and prepared and preserved meat ($23m, up five per cent).