NZ red meat exports surge 28%, US leads with strong demand - Meat Industry Association

The Meat Industry Association says the US is becoming an important sheepmeat market for high-value premium cuts. Photo / Paul Taylor

New Zealand’s red meat sector saw a strong start to the year, with export values in January increasing 28% year-on-year to $927 million, according to the Meat Industry Association.

“The sector experienced solid demand across all major markets, contributing to a significant uplift in export value,” the association’s chief executive Sirma Karapeeva said.

“This reflects both the ongoing recovery in global demand and the ability of New Zealand’s red meat sector to adapt to shifting market dynamics.”

The US led the way, with exports increasing 64% year-on-year, followed by China (up 10%), the UK (up 58%), and Canada (up 89%).

The US was the largest market for the month, accounting for $277m in exports, just ahead of China at $276m.

The UK accounted for $60 million, Canada $41m, and the Netherlands saw a 9% increase to $33m.

“The US is a strategically important market for our beef exports and a growing high-value market for our lamb exports,” Karapeeva said.

“New Zealand is a complementary trading partner, being an important source of lean beef that is mixed with US domestic grain-fed beef to produce burger patties.

Karapeeva said the US was also becoming an important sheepmeat market for high-value premium cuts.

Sheepmeat

Sheepmeat export volumes remained steady at 35,220 tonnes compared to last January.

A decline in exports to the EU (down 20% to 4775 tonnes) and the US (down 24% to 1692 tonnes) was offset by increased shipments to China (up 7% to 19,436 tonnes), the UK (up 9% to 3769 tonnes), and Malaysia (up 107% to 1140 tonnes).

Despite stable volumes, the value of sheepmeat exports rose 22% to $359 million, largely driven by a 44% increase in exports to China ($134 million) and a 53% increase to the UK ($50m).

Canada and Malaysia also saw value growth.

This more than compensated for a slight decline in export value to the EU (down 1% to $80m) and the US (down 10% to $37m).

Beef

Beef exports rose by 6% in volume to 38,788 tonnes and 36% in value to $409 million.

While exports to China were down 14% by volume and 4% by value, strong growth in North America helped drive overall gains.

“In the US, beef production remains steady, but demand for imported lean beef has increased due to lower domestic cow production,” Karapeeva said.

Beef exports to the US rose 24% in volume to 16,743 tonnes, while value surged 73% to $194m.

Exports to Canada also increased significantly, up 56% in volume (2499 tonnes) and 121% in value ($28m).

Results in North Asian markets outside China were mixed.

Exports to Japan declined compared to last January, while Taiwan remained steady.

However, there was a strong recovery in exports to Korea, up 37% by volume and 66% by value.

Fifth quarter

Fifth-quarter exports increased 22% to $159 million, driven by a sharp rise in tallow exports to the US, which contributed to a 184% increase in overall fifth-quarter exports to the market ($47m).

Tallow was the most valuable fifth-quarter export in January at $34m, followed by casings and tripe ($30m) and edible offals ($26m).

The US was the largest market for tallow, while most casings and tripe were exported to China.

Edible offals were shipped to multiple markets, including the US, China, Japan, and the UK.