Continued weak prices and demand from China are partly to blame for a 5% drop in red meat exports for the first quarter of this year.
Data released by the Meat Industry Association shows exports for the quarter, compared to a year earlier, were $2.58 billion, the lowest value for that period since 2018.
Export data for March was just as telling.
Association chief executive Sirma Karapeeva said red meat exports for March were worth $949 million, down 9% and the lowest value for the month since 2018.
Exports to China for the month were $277m, down 35% compared to a year earlier.
There were better results from the United States, with exports steady at $233m; and increases to the United Kingdom, up 57% to $50m, Japan, 63% to $47m and Canada, 56% to $29m.
Sheepmeat export volumes in March dropped 3% compared to March last year, at 43,702 tonnes, with the value 9% lower at $395m. For beef the drop was 2% to 45,690t with a 4% decline in value to $386m.
China led the drop in March exports, with sheepmeat volumes 25% lower at 20,008t, having dropped in value by 42% to $106m. Beef sales to China fell 16% by volume to 17,169t and 24% by value to $124m.
Karapeeva said results for the first quarter of 2024 compared to the same period a year ago show the Chinese market has been flat for some time, with the value of sales 27% lower at $796m.
Exports for the quarter to the US were up 11% at $658m, the UK took 44% more at $126 million and Japan increased 26% to $117m. The Netherlands was steady at $114m.
Sales to Korea dropped 30% to $46m and Germany was down 18% to $62m.
Export volumes of sheepmeat for the quarter were up 3% to 119,244t but dropped by 5% in value to $1.04bn.
The volume of beef exported rose 2% to 129,375t and its value was unchanged at $1.08bn.
The volume and value of chilled exports of beef and sheepmeat for the quarter increased but is still below pre-covid levels.
Chilled sheepmeat exports increased 17% to 13,202t, lifting 11% in value to $204m. China led the way, with volumes increasing 40% to 107t, and 61% by value to $3.4m.
Total sales of chilled beef increased 26% by volume to 9112t and 28% by value to $141m
“The high-value chilled meat offering is largely as a result of innovation and research and development in processing and packaging, which is providing a longer product shelf life,” said Karapeeva.
“While this is still a small volume compared to frozen exports, it reflects the work NZ processors and exporters are doing to create value-add products and to meet changing market demands.”
Fifth quarter exports in March were down 18% to $168m with the value of almost all categories dropping compared to last March, except for edible offals which increased 12% to $38m.
