Red meat exports slump, thanks to China
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Latest data from the US Meat Export Federation (USMEF) shows their combined value topped NZ$13.9 billion (US$11.5 billion).
Lamb exports hit 18,343t worth US$30.08 million, smashing the previous record set in 2006 when 13,934t valued at US$27.8 million was shipped. Compared to 2010, volume was up 72%, and value 46%.
Beef exports finished the year at 1.287 million tonnes valued at US$5.42 billion, shading the 2003 volume record of 1.274mt and easily surpassing the 2010 value record of US$4.08 billion.
Export volume was up 21% on 2010, with value up 33%.
Meanwhile pork exports totaled 2.255mt valued at US$6.11 billion, breaking the previous volume record of 2.052mt and shattering the value record of US$4.88 billion, both set in 2008. Year-on-year, volume was up 18% and value 28%.
“It is extremely gratifying to see all red meat exports reaching new heights, even with the various trade obstacles we still face across the world,” says USMEF president and chief executive Philip Seng, who believes the best is yet to come.
“Demand for US red meat has never been stronger and we are well-positioned to build on this success. Real opportunities exist for further growth and USMEF fully intends to capitalise on this strong momentum.”
The export return for each steer and heifer slaughtered was a record US$206.37 in 2011, up more than a third from US$153.09 in 2010. Beef exports equated to 14% of total production.
“We have greatly diversified our beef export destinations and by doing so we have eclipsed the level of exports we had prior to BSE,” Seng says. “By building new markets and steadily reclaiming the market share we lost in Asia due to BSE, we were able to approach the US$5.5 billion mark in 2011 – that’s one-third higher than the 2010 record, and a very significant achievement for the US beef industry.”
Exports to Japan surged 27% to 158,646t, while South Korea’s take grew 37% to 154,019t as the US took significant market share from Australia.
But Canada was the leading value market for US beef, up 41% to US$1.03 billion in 2011 as volume rose 25% on 2010 to 191,047t. Mexico took 4% more at 256,938t with the value up 20% to US$985.3 million.
Beef exports to the Middle East hit new highs with volume up 30% to 175,181t while Russia took 27% more at 72,797t.
Lamb exports benefitted from strong results in Mexico, Canada and the southeastern Caribbean. USMEF says other emerging markets showing promise for US lamb include Jordan, the United Arab Emirates, Panama and Costa Rica.
“While the industry is not large in size, US lamb has tremendous potential internationally,” Seng says.
“Chefs and other industry leaders around the world appreciate the quality of US lamb and recognise it as a premium product, so we have some wonderful opportunities for growth.”
