In a significant turn of events for New Zealand’s agricultural sector, the export value of red meat has seen a downturn. Recent statistics from the Meat Industry Association (MIA) reveal that the combined export value of beef and sheep meat in October plummeted by 14% compared to the same month last year, settling at $615 million.
This decline is largely influenced by a reduced appetite for these products in China, which stands as New Zealand’s primary market for red meat. The export value to China alone dipped by 13%, amounting to $191 million. This decrease is partly due to the influx of Brazilian beef and Australian lamb, which have started to dominate the Chinese market.
Sirma Karapeeva, MIA’s Chief Executive, provided further insights. Although there was a 17% increase in the volume of sheep meat exports, reaching 26,170 tonnes in October, its overall value saw a 6% reduction.
This drop in value is directly linked to the saturation of the market with Australian lamb, leading to a global price reduction. Australia’s recent boost in sheep meat exports, an additional 30,000 tonnes compared to the previous year, is a result of increased production and a phase of flock liquidation, a situation worsened by recent dry spells in parts of Australia.
In a contrasting scenario, the volume of beef exports in October remained on par with last year’s figures, but their value experienced a 13% fall. On a brighter note, certain markets are showing promising growth.
Exports to Canada have risen sharply by 57%, reaching $34 million, and those to the UK have increased by 44%, amounting to $23 million. These figures suggest a strategic shift in New Zealand’s red meat export markets, potentially as a response to the challenges in more traditional markets such as China.
