Exchange rate, demand boost meat returns

Export returns for meat improved in the December quarter. Pictured: beef carcasses are processed...
Export returns for meat improved in the December quarter. Pictured: beef carcasses are processed at Finegand. Photo by Stephen Jaquiery.
A more favourable exchange rate and strong demand, particularly for beef, meant an improvement for meat export returns in the three months to December, Beef and Lamb New Zealand figures show.

New Zealand beef and veal exports registered a record high 78,000 tonnes in the December quarter, up 14% on the previous corresponding period, Beef and Lamb chief economist Andrew Burtt said.

''This reflects record high international prices driven by a beef shortage in the United States and high slaughter numbers in New Zealand, partly due to low dairy prices.''

The additional beef New Zealand exported was mainly directed to North America, particularly to the US, Mr Burtt said.

North America accounted for 58% of New Zealand beef and veal exports in the first quarter of the season, up from 45% in the previous period.

Along with the increase in shipments, there was a strong increase in beef and veal's average per tonne value which rose 29% to $7670 a tonne in the first quarter from $5949 a tonne last season.

In the three months to December, beef and veal export returns reached nearly $600 million, up 48% on the same period in 2013.

After increasing in 2013-14, the average per tonne value of lamb exports continued to improve in the first quarter of the new meat export season, up 8.7% to $9140 a tonne.

The amount of lamb exported was down 6.2% to 57,500 tonnes shipped weight compared with the pcp.

Of the main destinations, North America was the only region to increase in volumes. The total value of lamb exports rose by 2% to $526 million.

Mutton exports fell 4.4% by volume to 17,200 tonnes but in a historical context, volumes remained at high levels, Mr Burtt said.

Demand from North Asia softened in the first quarter of the new season. North Asia accounted for 68% of total mutton shipments, down from 77% in the pcp.

''As a result, New Zealand mutton export destinations were more diversified than in 2013-14, with a surge in exports to South Asia, North America and the European Union.''

The average per tonne value of mutton exports increased by 3.5% to $5420 per tonne in the quarter, driven by an improvement in average values achieved in every region apart from North Asia, he said.

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