Thursday, 03 October 2019 09:23

Sheepmeat, beef exports to top $4b

Written by  Staff Reporters

NZ sheepmeat and beef exports are forecast to break the $4billion mark for the first time, thanks to Chinese consumers.

China’s strong demand for New Zealand’s beef, lamb and mutton will help export receipts in 2019-20, says Beef + Lamb NZ (B+LNZ).

B+LNZ New Season Outlook 2019-20 report forecasts beef, lamb and mutton prices to lift from historically high levels, helped by continuing strong export demand and an expected weakening of the New Zealand dollar.

“We have forecast increases in farm-gate prices for beef, lamb and mutton in 2019-20, because small increases in in-market prices are expected to be further assisted by an easing of the New Zealand dollar,” says B+LNZ chief economist Andrew Burtt. 

Beef and veal exports are expected to be up 5.9% to $4.17 billion and sheepmeat up by 4.9% to $4.23 billion.

This would add another $430 million in export earnings for red meat and offal following an extra $228 million and $1.23 billion in the two seasons prior – excluding fibres and other products.

This follows the exceptionally strong farm-gate prices for lamb and mutton since the 2016-17 season.

Beef prices have been steady since farm-gate prices jumped in 2014-15 but are expected to be up in 2019-20.

Burtt says the value of the New Zealand dollar has a large bearing on the sector’s outlook. The New Zealand dollar is expected to ease, partly due to the Reserve Bank of New Zealand lowering the official cash rate.African Swine Fever (ASF) will have significant ramifications for global meat supplies and consumption. China is the world’s largest consumer of pork – making up around 63%t of consumption.  However, New Zealand’s growth in the export value of red meat and volume began before the Chinese ASF epidemic. 

“The growth in China’s red meat import demand is built on genuine demand growth as consumption has out-paced domestic production growth,” says Burtt.

 “They are the end consumer, not the manufacturer of raw product to supply other markets.”

More like this

Autumn sub clover control sets up pasture for spring

Recent widespread autumn rain will have triggered the germination of subterranean clover seeds, and the resulting seedlings should be allowed to reach the 3–4 trifoliate leaf stage before grazing, says Beef+Lamb NZ.

Red meat rebound

The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.

The future of beef breeding

Progeny testing at Pāmu’s Kepler farm in Southland as part of Beef + Lamb New Zealand’s Informing New Zealand Beef programme is showing that the benefits of hybrid vigour could have a massive impact on the future of beef breeding.

Methane targets disappoint farmers

Beef + Lamb New Zealand (B+LNZ) has reiterated calls for New Zealand to revise its methane targets after the Government's "disappointing" announcement of its revised Nationally Determined Contribution (NDC).

Featured

Rural contractors call for overhaul of ag vehicle rules

Following a recent overweight incursion that saw a Mid-Canterbury contractor cop a $12,150 fine, the rural contracting industry is calling time on what they consider to be outdated and unworkable regulations regarding weight and dimensions that they say are impeding their businesses.

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Trial shows benefits of spring nitrogen use

A landmark New Zealand trial has confirmed what many farmers have long suspected - that strategic spring nitrogen use not only boosts pasture growth but delivers measurable gains in lamb growth and ewe condition.

Eric Roy: Championing the pork industry

It was recently announced that former MP and Southland farmer Eric Roy has stepped down of New Zealand Pork after seven years. Leo Argent talks with Eric about his time at the organisation and what the future may hold.

National

Machinery & Products

» Latest Print Issues Online

The Hound

A step too far

OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…

Save us from SAFE

OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter