Reduced demand from China has seen New Zealand lamb exports drop 4% in the nine months to June.
Statistics released by Beef and Lamb New Zealand this week show beef and veal returns and volumes had been higher than lamb and mutton, compared with the corresponding period last year.
Lamb exports dropped to 237,780 tonnes shipped weight, despite more lambs being processed. Changes in Chinese demand - less lamb and mutton and more beef - impacted all categories of New Zealand meat exports, due to the significant size of the market.
After increasing year on year since 2009 10, lamb exports to China fell 12% in the first nine months of the season. Lamb cut exports held over the period, but lower value exports, like carcasses, dropped.
Lamb exports to the European Union were up 4.7%, reflecting higher export tonnages to Germany, Netherlands and Belgium, offset by lower exports to Great Britain, the largest market for New Zealand lamb.
Dry conditions early in the summer meant New Zealand lambs were finished and exported to Great Britain a little earlier than normal.
That coincided with increased production in Great Britain and lower exports due to a strong Great Britain pound, which put pressure on prices.
Mutton exports fell by 17% to 67,910 tonnes, reflecting lower mutton production and lower demand from China.
Strong demand for beef, a weaker New Zealand dollar and high New Zealand beef production resulted in a 37% increase in beef and veal export revenue.
Dry conditions early in the summer and low milk prices led to an earlier and extended dairy cow cull than previous years.
From October last year to June this year, beef and veal exports reached 340,430 tonnes, up 8.8% on the corresponding period.
The strongest demand came from the United States, which took 57% of total shipments and China which took 12%.
Export tonnages to the US and China increased 23% and 38% respectively. Beef and veal exports to China overtook mutton exports in terms of volume.
Strong demand and a weaker dollar pushed the average per tonne value up by 26% to $7440. Beef and veal export returns reached a record high of $2.53 billion, up $686 million.
Beef and Lamb NZ analysis showed New Zealand's free trade agreements delivered tariff savings of $161 million on sheep and beef sector exports last year, and the amount looks set to grow as tariffs continued to fall and export volumes grow.
The increased tariff savings were a ''market access success story'' enabling New Zealand to remain competitive on the global market and giving exporters the flexibility to viably sell products into more markets, Beef and Lamb NZ chief executive Scott Champion said.