Meat exports top $9b
As farmers and exporters wait to see the full effects of China’s coronavirus outbreak, new data shows the importance of the market to New Zealand’s red meat industry.
Analysis from the Meat Industry Association (MIA) shows sheepmeat and beef exports jumped 6 per cent to $9.1 billion last year. The growth was largely driven by a surge in overall exports to China, which increased by 57 per cent to reach
$3.7b. Sheepmeat exports to China grew by 40 per cent to $1.6b for the year, and beef exports by
113 per cent to $1.7b.
MIA chief executive Tim Ritchie said the latest figures reinforced the importance of the sector to the New Zealand economy. ‘‘The meat processing industry is New Zealand’s largest manufacturing sector and employs about 25,000 people, many from regional and rural communities.
‘‘That is why we need to ensure any policy reforms, whether that be climate change, forestry or freshwater, need to be carefully thought through so as to avoid any negative unintended consequences.’’
The outbreak and spread of the coronavirus had disrupted the supply chain for red meat in China and the sector was still assessing the impact of the situation, Ritchie said.
‘‘Despite the issue in China, the underlying global demand for protein remains strong.’’
That strength was partly due to the outbreak of African swine fever in 2018, which had wiped out about 40 per cent of China’s national sow herd.
The resulting shortage of pork products had driven up Chinese demand for red meat and China last year overtook the United States as New Zealand’s largest export market for beef.
‘‘China is responsible for about 50 per cent of the world’s pork production and ASF has left a huge gap for other proteins,’’ Ritchie said. ‘‘Beef exports have benefited from that.’’
When it came to prices, ASB senior rural economist Nathan Penny said the impact of coronavirus had been mixed, depending on meat type.
‘‘Lamb prices are holding up relatively well as meat companies switch market focus to the US, Britain and the European Union.
‘‘Similarly, attention for beef exports has switched to the US [manufacturing] market, which is still performing relatively well.’’
The smaller mutton market was under the most pressure, with about three-quarters of exports going to China.
Penny said there was a sense the meat sector was ‘‘playing for time’’ because Chinese consumers still needed to eat and buyers were likely to return to market before long.