Export prices set to remain elevated
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
New Zealand exported red meat and co-products worth $870 million during July 2021 – marking a 29% increase year-on-year, according to analysis from the Meat Industry Association (MIA).
More than 25,300 tonnes of sheepmeat and almost 50,000 tonnes of beef were exported with increases in the value of exports to all major North American and Asian markets.
This included a 1,425% increase in beef exports to Thailand compared to July 2020. Thailand was New Zealand’s tenth largest market for beef by volume during the month, at 347 tonnes.
MIA chief executive Sirma Karapeeva says the main reason for the growth in exports to Thailand was the removal of beef safeguards that were put in place when the NZ-Thailand Closer Economic Partnership (CEP) was negotiated 15 years ago.
“That came off at the end of last year and beef exports are now tariff-free. So, instead of a rush of beef exports to Thailand at the start of each year to try and take advantage of the small tariff-free safeguard volume, we are now seeing companies put regular export programmes in place. Beef exports to Thailand have been growing steadily throughout the year,” Karapeeva says.
“High quality Free Trade Agreements (FTAs) are critical to market diversification. This really demonstrates the importance of FTAs to facilitate open markets that help companies to invest in markets and develop strong commercial relationships.”
China remained the largest market, with total exports worth $330.2m, a 57 per cent increase on the same period last year.
The US was the second highest with $241.2m, a 32 per cent increase, followed by Japan, up 62 per cent at $42.6m, and Taiwan with $26.8m, representing an 18 per cent increase.
July also saw a continuing trend in recent months of strong sheep meat exports into the United States, which increased 109 per cent year-on-year to $42m, and beef exports into China, up 95 per cent to $156m. Beef exports to most major beef markets also increased.
While exports to main European destinations were down compared to July 2020, this was more than compensated for by the increased demand from other markets. The UK dropped 25 per cent to $19m, Germany by 28 per cent to $17m and the Netherlands by 11 per cent to $17m.
The 2025 game bird season is underway with Hawke’s Bay and Southland reporting the ideal weather conditions for hunters – rain and wind.
A group of meat processing companies, directors and managers have been fined a total of $1.6 million for deliberately and illegally altering exported tallow for profit.
New Zealand’s top cheeses for 2025 have been announced and family-owned, Oamaru-based Whitestone Cheese is the big winner.
Waikato farmer, and Owl Farm demonstration manager, Jo Sheridan is the 2025 Fonterra Dairy Woman of the Year.
New Zealand’s special agricultural trade envoy Hamish Marr believes the outlook for the dairy sector remains strong.
Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association Te Pae Kīrehe (NZVA) awards.
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