Tuesday, 10 October 2023 10:55

Global volatility hitting NZ's red meat sector

Written by  Peter Burke
Meat Industry Association chief executive Sirma Karapeeva. Meat Industry Association chief executive Sirma Karapeeva.

Other countries competing against New Zealand in China is being cited as one of the reasons for the pressure our red meat sector is currently facing.

NZ red meat exports for the month of August were worth $730 million – a 16% drop on the same month in 2022. The main decline was in exports to China, which were down 44% to $213m. In contrast, exports to the US were up 26% to $188m, while exports to Canada were up 136% to $40m.

Meat Industry Association (MIA) chief executive Sirma Karapeeva says the decline in overall exports partly reflects last year was a record for exports in August.

But she adds that New Zealand is also facing growing competition in China.

“Meat competition has increased significantly in China and there are now 42 countries exporting meat to the country – 30 for beef alone. The volume of Brazilian and other South American beef on the China market is significant and it is driving down the price overall. Likewise, Australian producers are exporting significant volumes of mutton to China at a low price. Conservative consumer spending is also driving down pricing.”

Karapeeva says compared to last August, the volume of overall sheepmeat exports increased by 6% to 25,162 tonnes, but the value decreased by 13% to $236m.

She says the decline in value was mainly due to a decline in the value of exports to China, which were down 25 % to $73m – compared to August 2022.

“Sheepmeat exports to our other two major markets, the US and UK, increased compared to last August. The US is up 22% to $41m and the UK up 20% to $19m.”

The one bit of good news is that while beef exports to the UK are much smaller, NZ continues to benefit from the new beef quota under the UK Free Trade Agreement.

More like this

Red meat's China push

The red meat sector is launching a new campaign to lure Chinese consumers to New Zealand grass-fed beef and lamb.

Primary sector chuffed

Meat Industry Association chair Nathan Guy says his organisation welcomes the new trade deal with the United Arab Emirates (UAE), noting the UAE is the second largest market for the red meat sector in the Gulf Cooperation Council after Saudi Arabia.

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter