US helps offset weak Chinese market

Overall, New Zealand red meat exports in February were up 10% on the relatively low export value recorded in February 2023, largely due to a rise in sheepmeat and beef exports, particularly to the US.

Sheepmeat exports increased to nearly all major markets, apart from China where the volume fell by 8% to 19,401 tonnes.

Beef exports increased by 20% overall to 48,431 tonnes. This was 15% above the average for February exports over the last five years and included a 4% increase to China.

The EU and UK markets saw an increase in both volume and value for beef. So far this year, New Zealand has exported 998 tonnes of beef to the EU, worth $19.8m, a 38% increase in volume and 16% increase in value compared to the first two months of last year.

The average free on board (FoB) value of beef exports to the EU is $19.83/kg, more than twice the $8.31/kg average for beef exports.

Meat Industry Association chief executive Sirma Karapeeva said increased export volumes to the US were helping to offset lower demand from China.

“In February, the US accounted for nearly the same proportion of overall exports as China – 28% and 30% respectively.

“However, the results from the high value EU market highlights how the limited quota for beef in the Free Trade Agreement is a real missed opportunity for companies to develop a valuable market to help boost economic returns for the sector and the country.”