China’s first orders for high priced chilled meat
A pilot to export chilled meat to China could mark the start of extra earnings for the beef and sheepmeat sectors.
It will also usher in competition with Australia to the Chinese market, with our trans-tasman neighbours carrying out trials for several years now.
Primary Industries Minister Nathan Guy and Trade Minister Todd Mcclay have announced an agreement to allow a six-month chilled meat export trial.
New Zealand exported about $1 billion worth of frozen sheep and beef meat in the year to December, making it the second largest market for beef and sheep exports.
The trial will involve premium cuts sold into high end restaurants from 10 meat plants, with a decision yet to be made over which processors will be involved.
Meat Industry Association chief executive Tim Ritchie said returns from chilled meat were much higher than from frozen. The average value for all chilled lamb exports is $11.70 per kilogram versus $6.10/kg for frozen, while chilled beef is worth $12.46 compared with $6.45 for frozen.
Of all New Zealand’s sheepmeat exports, China takes 35 per cent by volume, but only 20 per cent by value.
Ritchie said the biggest breakthrough into China had been for the lower value cuts such as breast and flaps, which were used for the popular hot pot style of eating. ’’It’s a simplification, but we’ve been able to maximise exports, so that the cheaper cuts have gone to China, chilled legs to the UK, racks to the US and shoulders to Japan. The important point with this chilled trial is we have a foot in the door, whereas up until now we have been at a disadvantage compared to Australia,’’ Ritchie said.
Last year Australia exported 94,000 tonnes of beef to China, of which 6500 tonnes was chilled, and the proportion is growing. Mcclay said the memorandum was a step towards meeting a joint target of $30b of two-way trade with China by 2030.