Burger-loving Americans push beef exports to record

US restaurant and bar spending has overtaken grocery store sales for the first time. Photo / Getty Images

America's appetite for hamburgers has helped to drive beef returns to record highs in the first six months of the export season, says Beef and Lamb New Zealand.

Beef and veal export returns reached a record high of $1.6 billion in the six months to March - up 43 per cent or $480 million on the corresponding period last season.

The average per tonne value of beef and veal exports rose by 28 per cent to $7540 a tonne in the six months, compared with $5890 a tonne in the corresponding period last season, the farmer-funded agency said.

ANZ rural economist Con Williams said the pace of America's economic recovery would be critically important to many New Zealand exporters and farmers.

"For some who have larger earning exposure to the US there is an added bonus of both a strong market and weaker currency if US economic growth continues to pick up," he said.

US retail data this week showed restaurant and bar spending overtaking grocery store sales for the first time.

"Beef farmers will be rubbing their hands together with millennials overtaking baby boomers in dining out and driving quick-service restaurant sales activity," Williams said. "This bodes well for beef burger consumption in New Zealand's largest market and when combined with a hopefully weaker NZD/USD should be good for returns."

New Zealand beef and veal exports reached 212,100 tonnes in the six months, up 12 per cent or 22,600 tonnes on the corresponding period last season. Beef and Lamb said the gain reflected a high and early cattle processing season and strong global demand for beef.

"This increase in shipments was mainly due to consistent high monthly volumes exported to the two main markets for New Zealand beef - the US and China - while volumes to other main markets decreased."

Beef exports to the US increased by 33 per cent to 122,200 tonnes, while exports to China increased by 21 per cent to 21,000 tonnes.

The increase in shipments came predominantly from processing beef, which is primarily used as an ingredient for ground beef products such as hamburgers, while exports of boneless cuts fell slightly.

Processing beef and boneless cuts accounted for 54 and 34 per cent, respectively, of total beef and veal export volumes in the first six months of the 2014-15 season. The average value of New Zealand beef and veal exports to the US and China increased by 40 and 21 per cent, respectively.

Beef and Lamb said lamb exports decreased by 2.9 per cent, by volume, in the first six months of the 2014-15 season, compared with the same period last season.

Lamb exports to the European Union, the biggest market region for New Zealand lamb, were up 3.9 per cent to 68,700 tonnes but exports to North Asia were down 8.5 per cent to 47,500 tonnes, mainly driven by lower exports of carcasses to China. Despite the lower export volumes, the total value of lamb exports rose 2.2 per cent in the six months to $1.36 billion.

Sizzling

• $1.6 billion beef and veal export returns in the six months to March.
• Result is a record high, up 43% or $480 million on the same period last season.
• Exports volumes reached 212,100 tonnes in the six months, up 12% on last season.