TL;DR: In April, New Zealand’s red meat exports dropped 4% to $922 million, with the US surpassing China as the largest market. Exports to the US rose 19%, while China’s fell 37%. Significant increases were also seen in exports to Canada, the UK, and Japan.
In April, New Zealand exported red meat worth $922 million, a 4% drop from last April. This shift marks a notable change in the global meat market dynamics.
Export Declines
Exports to China fell 37% to $231 million. This drop is due to Chinese importers using up frozen meat stocks built up during COVID-19. China has been New Zealand’s largest market since July 2018, except in February 2020 when Covid first impacted trade significantly.
US Market Growth
In contrast, exports to the US increased by 19% to $261 million, making it the largest market for the month. Exports to Canada also rose sharply, up 105% to $32 million. Livestock numbers in both the US and Canada have declined due to widespread drought.
“This growth in the US market is very positive,” said MIA chief executive Sirma Karapeeva. “We are seeing encouraging signs of recovery for sheep meat into the UK and beef into Japan. This highlights the importance of New Zealand’s diverse export market strategy.”
Recovery in Other Markets
The UK and Japan continued to recover from last year’s low export levels. Exports to the UK increased by 57% to $53 million, while exports to Japan rose by 92% to $52 million. However, there was a reduction in exports to the Netherlands, Germany, and Belgium due to lower sheepmeat export values compared to last April.
Sheepmeat Exports
Sheepmeat exports totaled 37,057 tonnes, down 2% from last April, with value down 10% to $345 million. The largest drop was in exports to China, with volume down 27% to 16,081 tonnes and value down 44% to $88 million.
Key Markets
- UK: Exports rose 62% to $43 million.
- US: Exports increased by 38% to $57 million.
China accounted for 26% of sheepmeat exports by value, down from 40% last April. Exports to the EU were worth $89 million, down from $104 million, but still the second highest April figure for the EU since 2018.
Beef Exports
Beef exports remained steady, with overall exports up 2% by volume and value to 45,174 tonnes and $403 million. The US was the largest market, up 5% by volume to 17,678 tonnes and 15% by value to $176 million. Exports to China fell 21% by volume to 14,347 tonnes and 34% by value to $98 million.
Significant Increases
- Japan: Exports up 170% by volume to 3,833 tonnes and 161% by value to $36 million.
- Canada: Exports up 239% by volume to 2,045 tonnes and 235% by value to $19 million.
Japan’s increase in tourists, particularly in the food service sector, contributed to this growth. In March, Japan recorded 3.1 million foreign visitors.
Fifth Quarter Exports
In the Fifth quarter, exports saw a slight fall of 1% to $174 million. Individual category performance was mixed, but there was a significant increase in tallow exports to Singapore, which rose by 86% to $23 million.
The shift in New Zealand’s red meat export markets highlights the dynamic nature of global trade. With the US overtaking China as the largest market in April, and significant growth in exports to Canada, the UK, and Japan, New Zealand’s diverse export strategy proves vital for navigating market changes and challenges.
