Beef returns trump sheep

It is worth noting, however, that sheepmeat returns were constrained by supply.

NZ beef and veal exports generated $3.2b in 2014-15, up 39% on the previous season. This reflected an increase in shipments (+10%) and average value (+26%).

Driven by high beef prices, mainly due to strong US demand and low dairy prices, NZ beef production increased significantly in 2014-15.

Beef exports averaged $7510/tonne in 2014-15 vs $5970 in the previous season. In the 35 years since records have been kept, the average value of NZ beef exports has not exceeded $6000/tonne.

Demand was particularly strong in North America and Northeast Asia, where exports increased by 22% and 7%, respectively, while shipments to every other region declined. The two largest export markets were the US and China.

Despite an increase in lamb production in the 2014-15 season, NZ lamb exports were down 2%, but offset by a rise in the average value of lamb exports (+3.4%).

NZ lamb export returns reached $2.6b in 2014-15, up 1.3% on the previous season. In 2014-15 half of the returns were achieved in the EU, while Northeast Asia, the second largest export region, accounted for 21% of lamb export returns.

After doubling over the previous five years, NZ lamb shipments to Northeast Asia decreased by 12% in 2014-15. This was due to more product being exported to other markets.

While 2014-15 NZ mutton shipments were down on 2013-14 – dropping 8.8% to 85,300 tonnes shipped weight – the shipments were still 13% higher than the five-year average. This reflects higher levels of production and exports in 2013-14.

The combination of lower shipments and no change in the average value resulted in mutton export returns dropping 9.0% to $445m in 2014-15.