fbpx
Print this page
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

More like this

No easy ride for struggling sheep farmers

Stubbornly high farm input costs, a slow Chinese recovery and a flood of Australian lamb onto the global market are the main factors contributing to the tough times being faced by NZ's sheep farmers.

FTA good for Aussies and for us – Groser

ANYTHING GOOD for Australia is in the long run good for New Zealand. That’s the reaction of Trade Minister Tim Groser to the news that Australia has signed a free trade agreement with China, and to speculation that their FTA with China is better than NZ’s, especially regarding dairy products.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…