Red meat success story continues

High global prices continue to drive export growth for New Zealand red meat with the value of exports to almost all major markets increasing during September.

However, there are signs of a slow-down in some key markets, according to an analysis by the Meat Industry Association (MIA).

New Zealand exported red meat and co-products worth $777 million during September, a 21% increase on last year.

The top three markets were China ($286m), the United States ($149m) and the Netherlands ($29m).

High export values over the last 12 months also saw the value of total red meat and fifth quarter exports (co-products) reach $11.5 billion in the year ended September, up 20 per cent from the previous year.

Beef exports were worth $4.8 billion for the year (up 25%), sheepmeat exports were worth $4.5 billion (up 15%), and fifth quarter exports were worth $2.2 billion (up 20%).

MIA chief executive Sirma Karapeeva said export volumes of both sheepmeat and beef increased during September, compared to the same period last year and were the largest volumes exported in September in recent years.

However, there were also challenges in some key markets with a large drop in the value of the Yen impacting consumer spending in Japan.

Beef exports to Japan were worth $16m, down 23% compared to last September.

‘‘Beef exports to the US were also down 13% by volume compared to September 2021.

Drought in the US has seen an increase in domestic beef production and record levels of beef in cold storage in the US.

‘‘The large volumes of beef that China has been importing in recent months, particularly from

Brazil, also appears to be having an impact on prices.

The Free on Board (FoB) value of beef exports to China in September was $9.24 a kilo, down from a record $10.54/kg in July.

‘‘Over the year to date, China has also imported less sheepmeat from all markets than in 2021, which is something we are keeping a close eye on.’’ Sheepmeat

The value of sheepmeat exports increased 18% to $255m compared to last September.

The major sheepmeat markets for the month were China ($95m), the United States ($38m) and Germany ($23m).

Sheepmeat volumes rose by 15% to 21,157 tonnes compared to 2021 - reflecting a catch-up in processing in recent months following delays experienced earlier in the year.

Data for the third quarter of the year showed sheepmeat export volumes rose by 25%, to 77,810 tonnes, and 29% by value, to $903m, compared to Q3 2021 also reflecting the catch-up in processing and exports.

However, overall China has imported nearly 60,000 fewer tonnes of sheepmeat during the year to date.

From January to September 2021, it imported a total of 332,569 tonnes of sheepmeat from all markets.

During the same period in 2022, it has imported 273,229 tonnes.

New Zealand exported 145,671 tonnes of sheepmeat to China between January and September this year, a 22% drop on the same period last year.

However, this also reflects other reductions in Chinese imports of most meat apart from beef, particularly pork and poultry. Beef

The overall volume of beef exports rose by 3%, compared to last September, to 34,665 tonnes, with the value increasing by 25% to $338m.

Beef followed a similar pattern to recent months, with an increase in exports to China (up 37% to $152m).

The volume of beef exports in the third quarter was largely unchanged from Q3 2021 at 117,659 tonnes, but the value increased by 23% to $1.2 billion.

This meant that the average

FoB value of beef exports was $10.31 for the quarter compared to $8.29 for Q3 last year. Co-products/fifth quarter

The value of fifth quarter exports in September was $184m, up 19% from September last year.

Beef exports were worth $4.8 billion for the year, up 25% on the same time last year.