Red meat sector remains a key engine of economic growth

A new report shows New Zealand’s red meat sector will continue to be a strong driver of economic growth, with meat and wool export revenue projected to increase by eight per cent to $12.3 billion in the year to 30 June 2025.

The forecast is part of the Ministry for Primary Industries’ latest Situation and Outlook for Primary Industries (SOPI) report.

A lift in key meat export prices is expected due to tighter global beef and lamb production. Higher export prices for most products are forecast to be partially offset by lower volumes of beef and lamb.

Sheep and beef farm profit before tax is forecast to increase 89 per cent in 2024/25 due to higher farm revenue, more than offsetting higher farm expenditure. This lift in profitability follows falls in 2022/23 and 2023/24.

Meat Industry Association chief executive Sirma Karapeeva says the improved forecast highlights the sector’s importance to the New Zealand economy.

“We’re expecting an uplift in key export prices, driven by reduced global production of beef and lamb and continued strong international demand for red meat.

“This year, we’ve seen growth in value to most of our major markets, which is pleasing. There’s robust demand for New Zealand beef and sheepmeat from the United States, a significant increase in sheepmeat volumes to the European Union, and a recovery in exports to China.

“These results reinforce the red meat sector’s critical role in supporting New Zealand’s economy, particularly in our rural and regional communities.”

ENDS