Markets still weak

Despite some increases, exports of red meat remain weak overall. PHOTO: SUPPLIED
Despite some increases, exports of red meat remain weak overall. PHOTO: SUPPLIED
Global red meat markets remain relatively weak, the Meat Industry Association says.

Association chief executive Sirma Karapeeva said New Zealand exported $617 million of red meat in September.

Overall exports for the month were down 18% on last September.

Exports to Canada, the United Kingdom and Saudi Arabia increased but fell for China, Japan, Taiwan, Korea, the United States and Australia.

The drop was partly a result of the very high value of exports last September, but also reflected the ongoing difficult economic conditions in many of the major markets.

"China, in particular, continues to be challenging with overall exports in September of $187m, down 31% compared to last September.

"We also saw a 31% decline in exports to Australia, where there have been high levels of domestic meat production and exports as Australian farmers destock in anticipation of expected dry conditions driven by El Nino."

There were some positive signs for the market in the UK, as overall exports were up 33% to $17m.

"This was partly a result of a recovery of sheep meat exports from the low levels last September, and the continuing growth in beef exports with the improved access under the free trade agreement.

"Exports to Saudi Arabia grew significantly for the month, by 185% to $16m, largely driven by growth in sheep meat exports.

"North America was also generally positive, mainly due to an increase in beef exports. Overall exports to Canada increased by 16% to $26m."

The value of exports to Japan was down 4% to $27m during September, Taiwan fell 27% to $19m and Korea by 26% to $12m.

A 3% drop in overall exports to the US to $142m was mainly because of a significant reduction in fifth quarter exports, particularly tallow, compared with last September.

Overall red meat exports for the third quarter were worth $2.1 billion, down 21%.

"There was a decline in exports to China and the other North Asian markets, which was only been partly offset by growth in exports to North America."

China fell 42% to $642m, Japan by 31% to $88m, Taiwan by 4% to $75m and Korea by 36% to $48m. Exports to the US rose 15% to $551m and Canada was up 72% to $98m.

There was some increase in sheep meat exports to the US and Canada, but most of the growth was in beef as a result of some easing of drought and a corresponding decrease in domestic beef production.

There was a small increase in overall exports to the UK, which were up 2% to $70m, largely as the result of an 87% increase in the value of beef exports.

Despite this lift, over the full quarter the value of sheep meat exports to the UK declined compared with last year.

Exports for the year to September 30 were $10.2b, down 11% on the same period last year.

Overall, exports to most of the major markets decreased, but there was a small increase in the value of exports to the US, up 2% to $2.4b, and Canada, up 7% to $275m.

In both these markets this was because of an increase in the value of beef exports compared with last year.


Southern Field Days 2024 - Featured Businesses