NZ red meat exports steady despite volatile global markets

New Zealand’s red meat exports lifted slightly in April, with exports worth $996 million, a two per cent increase on April 2022, according to an analysis by the Meat Industry Association (MIA).

The release of the April export data follows three consecutive months of year-on-year declines.

Overall, beef exports increased by 18 per cent to 46,732 tonnes with the value up six per cent to $420m.

Beef exports to China were up by 23 per cent in volume to 18,764 tonnes, and seven per cent by value to $155m. Exports to the US increased by 45 per cent in volume to 18,296 tonnes and 32 per cent by value to $166m.

It appears that US domestic beef production is slowing down with the drought conditions easing in some parts of the country, and there is some increase in demand for imported beef.

Beef exports to Korea and Japan both fell, with Japan down 55 per cent by volume to 1,437 tonnes and 56 per cent by value to $14m. This was compared to a record month for beef exports to Japan in April 2022. Japanese consumer spending was also impacted during April this year by the highest non-fresh food prices in 47 years.

Sheepmeat

Overall, sheepmeat exports volumes were up 10 per cent to 38,627 tonnes with value down two per cent to $393m. Compared to last April, there was a growth in exports to China and the major European markets, but declines into the US and UK.

The overall decline in value and the decline to the US are partly the result of a drop from high values last April. However, conditions in the UK remain challenging for sheepmeat.

Country data

Compared to April last year, there was an increase in red meat exports to China (up 21% to $379m), the US (up 7% to $235m) and Germany (up 30% to $32m). However, this was offset by decreases to the UK (down 40% to $34m), Japan (down 49% to $28m) and Korea (down 21% to $24m).

Fifth quarter exports

Overall fifth quarter exports were up three per cent to $183m.

MIA chief executive Sirma Karapeeva said that while the results were encouraging, global markets remain volatile and uncertain.

“A positive trend was that the average export value of both beef and sheepmeat continued to increase from the recent low levels we saw at the beginning of this year.

“However, there were fluctuations in exports of both sheepmeat and beef to key markets. Exports to China, the US and Germany all increased year-on-year and beef performed very well. However, there were decreases in all exports to the UK, where consumer spending remains constrained in the face of continued high food inflation, and also a drop to Japan and Korea.

“While April 2023 export values for both beef and sheepmeat were still above the recent five-year average for April, the ongoing volatility in our global markets means we still remain cautious about the near term prospects.”

ENDS