Las exports red meat New Zealand remain under pressure due to difficult global marketsaccording to an analysis of August trade data by MIA, the country’s Meat Industry Association.
Las red meat exports amounted to 730 million dollars in August 2023, a 16 percent drop compared to the same month last year. The main drop was in exports to China, which fell 44 percent to $213 million. By contrast, Exports to the United States increased by 26 percent
to $188 million, and exports to Canada increased 136 percent to $40 million.
Sirma Karapeeva, executive director of MIA, said the decline in overall exports partly reflects the fact that last year saw record exports in August; However, New Zealand also faces increasing competition from China. “Competition for meat has increased significantly in China and there are now 42 countries exporting meat to the country, 30 just beef.”
“The volume of Brazilian and South American beef in the Chinese market is significant and is driving down the price in general. Likewise, Australian producers are exporting significant volumes of lamb meat to China at low prices. Conservative consumer spending is also driving down prices.”
“In the UK, we are now seeing the benefits of the UK-New Zealand Free Trade Agreement for beef exporters with an increase in volume and value compared to the same period last year.”
“In North America, the United States is emerging from a drought and entering a herd rebuilding phase, suggesting a positive outlook for beef in that market going forward.”
Sheep
Compared to last August, the volume of total sheep meat exports increased by six percent to 25,162 tonnes, but the value decreased by 13 percent to $236 million. The decrease in value was mainly due to a decrease in the value of exports to China, which decreased 25 percent to $73 million, compared to last August.
The average free on board value for exports to China was $5.79/kg in August, the lowest since March 2018.
Sheep meat exports to the other two main markets, the United States and the United Kingdom, increased compared to last August, with the United States up 22 percent to $41 million and the United Kingdom up 20 percent to $19 million. of dollars.
Beef
The volume of total beef exports increased by four percent to 41,466 tonnes, but the value decreased by 17 percent to $340 million.
The main drop was in exports to China, which decreased by 37 percent in volume to 14,691 tons and 56 percent in value to $101 million. While this is a big drop, it is a near-record export volume and value to China last August.
Exports to the US continue to recover from last year’s low levels as the country’s drought eases and domestic beef production declines. Compared to last August, exports to the United States increased by 118 percent in volume to 13,650 tons and 82 percent in value to $117 million.
There was good demand in Canada, with volume up 284 percent to 3,192 tonnes and value up 230 percent to $25 million.
While beef exports to the UK are much smaller, New Zealand continues to benefit from the new beef quota under the UK Free Trade Agreement.
During the first three months of the FTA (June-August), New Zealand exported 653 tonnes of beef, worth $8.1 million, to the UK. This was an increase of 95 percent in volume and 117 percent in value compared to the same period last year.
Before the FTA, these beef exports would have been subject to a tariff rate of at least 20 percent, so the sector has already experienced tariff savings of around $1.6 million in the first three months of the FTA. .
New Zealand has a quota of 12,000 tonnes for the first year of the FTA, and export volume in the first three months represents just over five percent of that quota. While exports are growing, quota use remains modest.
2023-10-03 21:56:15
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