Total chilled export volumes in February were down by 50% year-on-year. Frozen product export volumes lifted to compensate. However, no discernible difference in the total export volume was felt year-on-year.
But when export volumes and prices were broken down, some "very dynamic market play" was revealed, Rabobank's latest agribusiness review said.
Key export market prices had strengthened year-on-year, except frozen cuts destined for the United States.
As an example, German market returns were equivalent to 14/kg (about $NZ22.40) for chilled product and 8/kg ($NZ12.80) for frozen in February, whereas last year's price was 10/kg ($NZ16) and 6.60kg ($NZ10.60) respectively.
That lift led traders to be more selective. Chilled export volumes in February 2012 were a quarter of those in February 2011, while frozen volumes lifted 50%.
The net effect of that product mix, price and currency had seen only a 3% softening in New Zealand dollar returns. However, given economic growth forecasts, that trend was expected to continue.
Initial concerns over subdued demand for venison in key European markets, due to the sovereign debt crisis, had not eventuated, Forsyth Barr's agriculture sector review said.
Beef cattle prices were forecast to remain at current levels or lift as the US and European Union markets remained strong, Rabobank's report said.
Total exports lifted 5000 tonnes in February to 37,000 tonnes. Japanese and Korean imports of New Zealand product were both back year-on-year in February, down by 500 tonnes and 1300 tonnes respectively.
Indonesia was back in the market and 1500 tonnes was shipped in February, up 50% on January. However, the consistency of demand from there remained a concern.
Farm-gate prices for lamb were down 6% on the same period last year. South Island 17.5kg YX lambs averaged $5.78kg cwt through March, compared with $6.17kg cwt for the corresponding month last year.
Average lamb weights were up 5% on the same time last season, compensating per head prices.
Peak processing conditions had rapidly increased product availability and were putting pressure on distribution channels.
Exports lifted strongly in February as processing increased, with an additional 30% of product departing New Zealand compared to January.
Even with that increase in exports, year-on-year figures were still down 7.5% as the initial slow start meant product had been leaving later. New Zealand's exports were at 63,370 tonnes for January to February.
The total volume of wool exported from New Zealand in February was about 66,000 tonnes clean, down 8.3% on last month. Exports to China were down 19% month-on-month.
