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 percent from last September. Lower production levels impacted volume.
The US was the largest export market, with $143 million, down five percent, followed by China, which dropped 41 percent 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. Less meat has been produced and is available for export,” said Karapeeva.
“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 percent during the same period last year, and sheepmeat production was up six percent. However, beef and sheepmeat production was down by 24 per cent between June and August.”
Karapeeva added the opportunity to target a wide range of markets, particularly those with strong demand, which was helping companies mitigate fluctuations.
There were increases in sheep and beef exports to Canada, up 71 percent to $40 million, the Netherlands, up 48 percent to $30 million; and the UK, which grew 51 percent to $25 million.
While beef exports to the US fell by four percent by volume in September to 8,244 tonnes, their value increased by 15 percent to $90 million. The average value of New Zealand red meat exports to the US grew from $9.14/kg to $10.92/kg.
The volume of sheep meat exports to the UK increased by 36 percent to 1,806 tonnes, but the value was up by 46 percent to $18 million. Similarly, sheepmeat exports to the EU were up 12 percent by volume to 3,086 tonnes, but the value was up 23 percent to $55 million.
Overall, sheep meat 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.
Sheep meat exports to the US were down two per cent by value in September to $37 million.
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 12 per cent for the quarter to $868m.
Fifth quarter exports were worth $130m in September, down by 19 per cent year-on-year.
The value of fifth-quarter exports to the US dropped 52 percent to $16m. This was largely due to tallow exports dropping by $10m, continuing the trend of tallow exports shifting to Singapore in recent months.
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