Thursday, 07 February 2019 09:47

Too many eggs in China's basket?

Written by 
Doug Steel. Doug Steel.

China's market share of NZ’s primary exports is material and raises the issue of concentration risk, says BNZ rural economist Doug Steel.

Read: Bank picks flat prices for 2019.

“For agricultural and forestry products overall, China accounts for about 28% of NZ exports. 

“It’s not nearly as much concentration as NZ ran with the UK prior to the 1970s, but it’s not insignificant. Of course, this doesn’t mean NZ shouldn’t sell more produce to China just because it already sells a lot there,” he explains. 

“But it does pay to be aware of the rising concentration and potential fallout if conditions were to deteriorate rapidly in that market and plan accordingly.”

Meat has seen big Chinese market share changes over recent times, including last year. 

“China now takes 30% of NZ’s sheepmeat exports and 24% of beef exports. Ten years ago these shares were 3.2% and 0.1% respectively. 

“Most recently, African swine fever in China may have generated extra demand for imported meats including beef and lamb, as consumers look to replace any shortfall in domestic pork supplies,” Steel says.

“Gains in China’s market share for NZ sheepmeat has also coincided with the UK’s share dipping sharply after the June 2016 Brexit vote. The EU’s share has drifted lower.”

Bank picks flat prices for 2019

» Connect with Rural News

More like this

» The RNG Weather Report

Featured

 

Proper training beats learning on the hoof

New Zealand's first professional dairy cow hoof trimmer has fulfilled a long-held dream, setting up a training institute to bring internationally recognised standards of hoofcare to the industry.

FE researchers aim to raise awareness

Facial eczema in dairy cattle can cause significant production losses without visible symptoms, says a new group formed to raise awareness of the disease.

» Connect with Rural News

» Connect with Rural News

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Useless

The Hound notes that one of the country’s poorest financially performing state-owned enterprises – the Government farming entity Landcorp (or…

Rural revolt

Your old mate hears that the antics of the Government – especially the NZ First component – are fuelling motivation…

» Connect with Rural News