China pork shortage drives meat demand amid outbreak
A shortage of pork in China means New Zealand’s meat industry won’t be hit too hard by the coronavirus outbreak, Meat Industry Association CEO Tim Ritchie said.
‘‘It’s not a time to panic, but it’s not a time to be complacent,’’ he said.
The meat industry could expect to see movement in the market this week as coronavirus precautions were lifted, Ritchie said.
An extended Lunar New Year holiday in China had caused congestion for products entering the country and slowed trade.
The extension ended last week and supply chain operations were expected to return to normal, Ritchie said.
‘‘The key will be the extent to which that happens.’’
China is one of New Zealand’s biggest meat markets – more so since the country was hit by African swine fever, slowing production of its most popular protein source.
Prices for New Zealandsourced meat hit records late last year, Ritchie said.
‘‘The beneficiaries have been poultry, beef and sheep meat.’’
The coronavirus outbreak has, however, caused uncertainty for the industry.
The Chinese New Year was traditionally a time to socialise but people were staying home instead of eating out, Richie said.
The extended holiday period also meant ports were not fully staffed.
Blue Sky Meats CEO Todd Grave said the situation was dynamic and ‘‘changing day-byday’’.
The company’s management team were meeting daily but in a letter to shareholders, Grave said the company was diverting product to ‘‘solid alternative markets’’.
Blue Sky was continuing to operate at full capacity but would adjust its livestock schedule as needed, Grave said.
‘‘We have adequate cold storage space available and current inventory levels are below the same time last year,’’ he said.
Grave noted that livestock prices would inevitably be impacted but Ritchie said a price adjustment was normal after a boom.
Ritchie expected the way Chinese consumers were served would change in the coming months, with meat being marketed through retail and ecommerce channels instead of restaurants.