Chinese demand for NZ meat softens
EXPORTS: Value of red-meat exports drops in first quarter
New Zealand exported $2.58 billion of red-meat products in the first quarter of the year, as the sector continues to face weaker pricing and demand in China, the Meat Industrsy Association says.
Overall red meat exports were down by 5 per cent from the first quarter of 2023, the lowest value for the quarter since 2018, according to an analysis by the association.
Meat Industry Association chief executive Sirma Karapeeva said the weaker Chinese market was partly offset by good demand from North America, and there were signs of recovery in the UK and Japan.
China remained challenging, with exports down 27 per cent to $796 million, while most other top markets remained steady or increased.
Exports to the US were up 11 per cent to $658m, the UK by 44 per cent to $126m, Japan by 26 per cent to $117m, and the Netherlands remained steady at $114m.
However, exports to Korea dropped 30 per cent to $46m for the quarter, and exports to Germany dropped 18 per cent to $62m.
Sheepmeat export volumes were up 3 per cent to 119,244 tonnes, and beef up 2 per cent to 129,375 tonnes.
But the value of sheepmeat was down 5 per cent to $1.04b. Beef remained unchanged at $1.08b.
Karapeeva said it was encouraging to see the positive performance of chilled products.
While the volume and value of frozen exports were down or unchanged, chilled exports of both sheepmeat and beef increased.
Chilled sheepmeat exports rose 17 per cent by volume to 13,202 tonnes and 11 per cent by value to $204m on the first quarter of last year.
This included China, up 40 per cent by volume to 107 tonnes, and 61 per cent by value to $3.4m.
Chilled beef exports increased 26 per cent by volume to 9112 tonnes and 28 per cent by value to $141m.
“Although chilled sheepmeat volumes are still below pre-pandemic levels, it is encouraging to see some recovery, while chilled beef exports have largely recovered,” she said.
“The high-value chilled meat offering is largely as a result of innovation and research and development in processing and packaging, which is providing a longer product shelf life.”
■ Overall: March quarter exports were in line with the trends of the quarter. The total exports of $949m were down 9% per cent on March 2023, and represented the lowest value for the month since 2018. Exports to China dropped 35% to $277m. The US remained steady at $233m, the UK increased 57% to $50m, Japan by 63% to $47m, and Canada by 56% to $29m.
■ Sheepmeat: Exports dropped by 3% by volume to 43,702 tonnes, with value down 9% to $395m. Volumes to China were down 25% to 20,008 tonnes and 42% by value to $106m. Exports to the US increased 36% by volume to 3621 tonnes and 30% by value to $67m. Exports to the UK also increased against the low levels seen in early 2023, up 57% to 3621 tonnes, and 48% by value to $40m. ■