US, EU and UK drive NZ red meat export boom to $827m
According to analysis by the Meat Industry Association (MIA), New Zealand red meat exports reached $827 million in October, a 27% increase on the same period last year.
December saw a 9% drop in the value of exports, to $966 million, compared to the same period in 2021.
Sheepmeat exports were down 19% during the month to $338 million, beef exports fell by 15% to $428 million and fifth quarter products by 9% to $200 million.
The largest drop was in the Chinese market, with December 2022 exports down by 21% to $357.6 million. The UK also dropped by 53% to $25.8 million year-on-year.
MIA chief executive Sirma Karapeeva says the red meat sector’s global markets softened with high inflation eroding consumers’ purchasing power.
“Some consumers in our key markets are trading down to cheaper proteins and dining out less in restaurants,” Karapeeva says.
“For beef, we are seeing record imports of beef into China from Brazil. The relaxation of China’s Covid-19 policy has also created some uncertainty in the market.”
Overall, exports for 2022 increased by 13% compared to 2021.
China remained the major market, with a total of $4.3 billion, an increase of 5% on 2021.
Exports to the United States were up by 7% to $2.3 billion, Japan increased by 20% to $561 million and the United Kingdom by 11% to $464 million.
Sheepmeat export volumes fell by 5% to 375,716 tonnes for the year but the value increased by 6% to $4.3 billion. The average free on board (FoB) value of sheepmeat exports in 2022 was $11.56/kg, up from $8.02/kg in 2021.
China was the largest market for beef during the year, with the volume up 4% to 219,340 tonnes and the value up 34% to $2.1 billion.
There was a decrease in exports to the other major beef market, the United States, with the volume dropping 22% to 126,177 tonnes and the value by 5% to $1.3 billion.
Fifth quarter products exports were worth $2.2 billion, up 13% from 2021. The greatest demand was for casings and tripe, up 29% to $440 million, edible offals, increasing three % to $357 million and hides and skins, growing 23% to $305 million.
