New Zealand Red Meat Exports Increase By 27 Per Cent

The value of New Zealand’s red meat sector exports reached $693 million during October, a 27 per cent increase year-on-year, according to an analysis by the Meat Industry Association (MIA).

Sheepmeat was a standout performer with the value increasing by 25 per cent to $309m. The major sheepmeat markets by value were China, up 25 per cent to $131m, the United States, up 54 per cent to $46m, and the Netherlands, up 94 per cent to $29m.

Sirma Karapeeva, chief executive of MIA, said a mixture of supply constraints and good demand in key markets had contributed to the high sheepmeat prices. These factors included Brexit-related issues and Australia rebuilding its sheep flock.

“The average Free on Board* (FOB) value for sheepmeat exports for the quarter was $12.52/kg,” said Ms Karapeeva.

“This was a record level and the first time that the average monthly FOB value has been above $12/kg.

“Value growth in our key global markets was across the board, with beef up 28 per cent to $231m and co-products increasing by 30 per cent to $153m.”

Overall, the value of China’s imports of New Zealand red meat was up 34 per cent to $262m, the United States by 47 per cent to $138m, Japan by 29 per cent to $31m and the Netherlands by 76 per cent to $30m.

UK sheepmeat exports to the EU have been affected by Brexit, said Ms Karapeeva.

“Most of the United Kingdom’s sheepmeat exports - around 90 per cent - normally go to the 27 European Union countries but its exports to that market are down 24 per cent so far this year.”

*Free on board – the quoted price for the goods delivered to the ship for shipment

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