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Volatile global markets are eroding the value of red meat exports and sheepmeat is being hit hardest.
The Meat Industry Association (MIA) says there were $935 million of red meat exports in June, a fall of 12% compared with the same month last year.
Sheepmeat dropped in volume and value to most of the country’s major markets, but beef exports were relatively steady.
Overall, sheepmeat to China decreased 21% to $302m, Japan fell 41% to $41m and the United Kingdom dropped 23% to $34m.
However, exports increased to Taiwan, Canada and the United States.
US exports were driven by beef, up 60% by volume at nearly 21,700 tonnes and 43% by value at $200m, the highest monthly value since March 2015.
MIA chief executive Sirma Karapeeva said the drop in sheepmeat volumes reflected tough conditions in many markets.
Improved US results indicated its drought was resulting in reduced domestic beef production and a tightening supply, she said.
“We are also now seeing the benefits of New Zealand’s free-trade agreement [FTA] with the UK, which came into force on May 31. Overall, beef exports to the UK were worth $3.3m in June. Previously, beef exports would have likely been under one of the quotas with a tariff rate of 20%, so we have already seen tariff savings of around $650,000 in the first month of the FTA.”
Total beef exports were up 12% at nearly 52,800 tonnes, but the value was down 3% at $477m.
Beef exports to most of the major North Asian markets were down, with China back 26% at $158m, Japan down 48% at $23m and Korea down 70% at $8m. Taiwan saw a 35% increase to $21m and Canada a 247% increase to $18m from low export levels last June.
Sheepmeat exports were down 20% by volume at 25,369 tonnes and 28% by value at $281m.
Fifth-quarter exports amounted to $176m, down 2% compared with a year ago.
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