A weaker New Zealand dollar was not enough to offset lower international prices in the first half of the 2015-16 meat export season.
Analysis by Beef + Lamb New Zealand's Economic Service showed red meat export revenue was down in the six months to March 31, despite increased shipments and some depreciation of the New Zealand dollar.
Lamb export returns totalled $1.38billion, up 1.5% on the same period last year, boosted by large shipments (up 5.9%) due to an early processing season and the softer dollar.
Shipments to North Asia and the European Union increased significantly, up 11% and 7.2% respectively. The rise was partly offset by lower shipments to the Middle East.
Chilled lamb exports volumes were up 12% in the first six months, while frozen lamb exports were down 3.6%.
The average value of lamb exports was down 4.2% despite the softer dollar partly offsetting the decrease in international prices. Without the effect of that, average values would have been down about 14%.
Mutton export volumes remained broadly unchanged, while volumes to North Asia, New Zealand's largest destination for mutton exports, were down 9.4%. Exports to the EU, South Asia and North America all increased significantly.
The average value of mutton exports decreased 10% compared with the previous season. The largest decrease in average value occurred in North Asia.
Beef and veal shipments were down 3.7% in the first six months of the 2015-16 season, despite being up 15% in the first three months. Chilled export volumes remained unchanged with all the decrease due to lower frozen shipments.
The average value, in New Zealand dollars, of chilled beef exports was up 11% in the first half of the season, while frozen beef exports averaged 4.3% less than the same period last season.
Looking at the exports traded in USD, the most common currency in which New Zealand beef was exported, the average value was down 39% for chilled beef and 18% for frozen.
That highlighted that average values in NZD would have been down considerably more on the previous season without the NZD depreciation.
The volume of exports to North America, the largest destination for New Zealand beef and veal exports, was down 15%.
After a ‘‘tremendous'' 55% increase in shipments to North Asia in the first quarter of the season, exports continued to increase but at a much lower rate in the second quarter (up 5.5%).
