TL;DR: US demand boosts NZ’s red meat exports, offsetting China’s decline. EU and UK markets show growth, highlighting the importance of diversified trade strategies amidst varying international market demands.
The United States’ demand for red meat has offered a critical lift to New Zealand’s exports, counteracting the ongoing decline in the Chinese market. Data from the Meat Industry Association reveals that export receipts for February hit $932 million, marking a 10% increase from last year’s lower figures, largely fueled by increased exports to the US.
China’s continued downturn was highlighted by a significant 8% drop in sheepmeat volume to 19,401 tonnes. On the brighter side, beef exports surged by 20% to 48,431 tonnes, surpassing the five-year average for February.
The European Union and the United Kingdom saw an uptick in the volume and value of beef exports, with the EU receiving 998 tonnes worth $19.8 million—a 38% volume increase and a 16% value increase compared to early last year. The premium value of beef in the EU stands at $19.83/kg, doubling the average price.
Sirma Karapeeva, chief executive of the Meat Industry Association, highlighted the close export shares between the US and China, standing at around 28% and 30%, respectively. The EU’s high-value market emphasises the missed opportunities due to limited beef quotas in the free trade agreement.
Sheepmeat exports in February rose 18% to 41,850 tonnes, although still below the five-year average. Despite a 24% value decline in China to $101 million, US sales soared by 74% to 4,262 tonnes—a record high, with the value increasing by 54% to $68 million.
Beef exports showed growth across most major markets, led by the US with a 43% volume increase. However, sales to China slightly declined by 3% to $137 million. The UK, benefiting from pre-FTA conditions, experienced a significant boost, becoming the eighth-largest beef market.
Despite some declines, including a 20% fall in exports to Korea, there were gains in edible offal and hides and skins, showcasing the diverse outcomes within the sector. This mixed performance underscores the complexities of the export landscape, with geographic and market-specific factors influencing trade dynamics.
