increase font size
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
One of the country's leading experts on China has praised the NZ Government for its handling of the recent incident with China over that country's cyber attack on two of our parliamentary institutions in 2021.
Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.
Zespri has unveiled the award-winning KiwiBrothersTM mascots in China for the first time to market its large kiwifruit crop.
Authorities in China have clamped down on companies in that country which have been packaging and selling their own local fruit under the Zespri brand.
Farmgate dairy and beef prices are improving but lamb prices remain weak, according to the latest BNZ Rural Wrap.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…
