Beef’s billion dollar quarter

It reports that the Meat Industry Association (MIA) analysis of Statistics NZ figures for Q1 2015 (ending March 31), show the value of beef exports rose 42% from $708m in the first quarter of 2014 to $1b in the same period this year.

MIA policy analyst Matt Conway told the blog that volumes were up too, but not to the same extent, meaning New Zealand earned more by the trade. Overall, beef exports were up 11% in volume, compared to Q1 2014.

“In particular, there was a significant increase in beef exports to NZ’s largest beef export market, the US. They were up 26% by volume and 72% by value, driven largely by beef shortages there,” Conway explained.

He also noted that Australian beef exports to the US increased by 56% from 67,209 tonnes in Q1 2014 to 105,140 tonnes in Q1 2015.

NZ beef exports to China were also up by 53% in Q1 2015 vs the same period in the previous year.

However, beef exports to Indonesia remain a problem. 

“These were significantly down in Q1 2015 vs Q1 2014, reflecting the impact of regulations put in place by the Indonesian government at the beginning of 2015 restricting the types of cuts that can be imported into Indonesia.”

MIA is watching the situation as the joint US/NZ complaint to the World Trade Organisation about Indonesian trade restrictions goes through the system.

For sheepmeat, it was a different matter. The stats show an 8% decline in volume vs Q1 2014, but only a relatively small decrease in the value of exports.

The biggest decline was in exports to China, says Conway – down around 24% by volume and value vs Q1 2014. “However, this was partly offset by an increase in the volume and value of exports to the UK.”

Sheepmeat volume to the UK rose by 9.4% and value by 11% in Q1 2015 vs the previous year. Shipments of NZ sheepmeat worth $239m were shipped to the number one market China, and over $236m to the UK, NZ’s second-largest market.

Q2 statistics are due towards the end of this month, and MeatExportNZ says these trends are continuing.