TL;DR: Red meat exports from New Zealand decreased by 5% in the first quarter of 2023, hitting the lowest quarterly value since 2018. Despite a decline in Chinese demand, growth in North America and recovery in the UK and Japan offset losses. Chilled meat exports showed promising increases.
Red meat exports have seen a decline, down five per cent from the first quarter of 2023. This marks the lowest quarterly value since 2018, as analysed by the Meat Industry Association (MIA).
Varied Market Performance
Sirma Karapeeva, MIA’s Chief Executive, noted that the weaker demand from China was partially offset by stronger demand from North America. Signs of recovery are also seen in the United Kingdom and Japan. Yet, China poses challenges with a significant drop in exports, down 27 per cent to $796 million.
Stable and Growing Markets
While China’s numbers have fallen, other major markets like the US, the UK, and Japan showed growth. US exports increased by 11 percent reaching $658 million, and the UK’s rose by 44 per cent to $126 million. Japan also grew by 26 per cent to $117 million. Exports to the Netherlands remained steady at $114 million.
Declines in Some Areas
Exports to Korea and Germany saw declines, dropping 30 per cent and 18 per cent respectively.
Meat Volumes
Sheepmeat volumes were up by three per cent at 119,244 tonnes, and beef volumes rose by two per cent to 129,375 tonnes. Despite the increase in volume, the value of sheepmeat fell by five per cent to $1.04 billion. Beef values remained steady at $1.08 billion, with Karapeeva finding the performance of chilled products particularly encouraging.
Chilled Exports Rising
Chilled exports for both sheepmeat and beef have increased. Chilled sheepmeat volumes rose by 17 per cent to 13,202 tonnes, and its value by 11 per cent to $204 million. Chilled beef volumes saw a 26 per cent increase to 9,112 tonnes, with a corresponding 28 per cent increase in value to $141 million.
Focus on High-Value Products
Karapeeva expressed optimism about the recovery of chilled sheepmeat, although volumes remain below pre-pandemic levels. Chilled beef exports have nearly fully recovered. She highlighted that innovation in processing and packaging, which offers longer shelf life, is contributing to these high-value chilled meat products. Although still a small segment compared to frozen exports, this focus reflects the efforts of New Zealand processors and exporters to meet market demands and add value to their products.
Monthly Insights for March 2024
March followed the quarter’s trends closely with total exports valued at $949 million, marking a nine per cent decline from the previous year and the lowest for the month since 2018. China’s exports plummeted by 35 per cent, whereas the US remained stable. The UK, Japan, and Canada, however, experienced significant increases.
Sector-Specific Performance
Sheepmeat exports decreased in volume by three per cent, with significant drops in China but increases in the US and UK. Beef exports also declined slightly in volume, but the US saw value growth, and Japan’s volume and value more than doubled from last March.
Fifth Quarter Analysis
Fifth quarter exports decreased by 18 per cent overall to $168 million. However, edible offals bucked the trend with a 12 percent increase.
This summary reflects a mixed landscape for New Zealand’s red meat exports, with challenges in certain markets countered by gains in others and promising growth in high-value chilled products.
