The United States surpassed China as the biggest destination for New Zealand red meat sales in April, according to the Meat Industry Association (MIA).
This comes as continuing languor in the Chinese economy pulled down the value of global beef and sheep meat sales overall.
Worldwide NZ exports for April slipped 4% year-on-year to $922 million.
The contraction in the value of Chinese purchases played a big part in this drop, with them falling 37% to $231 million.
But American purchases rose 19% to $261 million, making the US the most valuable market for the month.
“The growth in the US market is very positive,” says MIA chief executive, Sirma Karapeeva.
“This underlines the importance of the New Zealand red meat sector’s diverse export market strategy.”
The sale of beef to the US has sometimes been seen as a coals-to-Newcastle problem, given the iconic status of the Texas cattle ranch. But New Zealand trade experts say US farmers do not produce enough beef for the ubiquitous American hamburger, and this problem has been exacerbated by drought.
Other trends in the April figures include a 105% jump in sales to Canada to $32 million, due largely to drought in North America. Sales to the UK and Japan also rose, by 57% and 92% respectively. Sales to the Netherlands, Germany and Belgium fell.
Breaking down the figures further, global sheep meat sales fell 10%, mainly due to China, and beef remained steady, with overall exports up 2%.
15 Comments
This article doesn’t bother with the detail but assumedly the bulk of the export to the USA is manufacturing beef. Well, that being the case, then that is nothing new then is it. NZ has been consistently supplying lean frozen grinding beef to the USA, to blend with their domestic, for the gigantic burger trade for well over sixty years. In fact in 70/80s and on, the Nth American market was just about all there was. It is fortunate that the rapid increase in dairying, for which the slaughter of stock is a by product, in NZ has coincided with the emergence of China as a market for such as the standard cfhs & bull. Pure commodity but it’s hardly anything novel to the USA.
USA are also buying more sheep meat but only certain cuts as far as I am aware. Even though these are higher value cuts there is still a problem with the rest of the carcass and mutton. China raises the price over all by buying those other products so while the China market is weak so will meat prices remain low.
So this is about red meat. China eats (and produces) pork.
How long ago was it that they had to destroy much of their pig stock causing a global shortage?
I can imagine a scenario where they temporarily moved to red meat as an alternative. Maybe their pig farmers have now replenished their stock and consumers are back to pork?
As usual 100% right Hans. The Chinese have huge amounts of pork available again at very cheap prices and deflation occurring. They will eat Beef, lamb, Mutton but they are very price concious now - it was very hard in China through Covid.
Alongside this we have Australia prepared/able to supply large amounts of Mutton and Lamb. In the end the price they will pay reflects supply and demand and unfortunately the price is not high enough to make it profitable in NZ.
Its not that they don't like our meat they just don't need to, want to or able to pay as much as we need or want.
While pork is number one they do still eat a lot of lamb and beef. If we can convince the world that grass fed red meat is healthier than pork and chicken we can make good progress. Pork and chicken is kind of garbage in comparison due to the poor quality of the feed these animals are raised on.
There is a growing obesity problem in China (and America). They also like to focus on academic studies for their children. If we can convince a significant number of them of the health benefits of raising children on grass fed meat, especially for young people's body and brain development, we can significantly lift sales.
You want tall, healthy, smart children? Raise them on meat.
I know I go on a bit about this but this is a meat article. The meat industry should fund more studies.
I highly recommend young Kiwi YouTuber Max German:
https://www.youtube.com/@max.german/videos
Head on over there and like and subscribe right now! Support our young Kiwis!
You maybe right Zach but whos going to fund these studies? Farmers? They are under the pump big time and have companies like Alliance now getting them to take debt on the farm balance sheets for them as they cant raise it.
I don't think too many sheep farmers can afford to hand out more money at the moment. Its a big world out there with lots of choice and competition and we are very very small.
All I can say sammnz, is the market you are talking about is tiny. There is very little chance of growing that type of market for what we produce.
Off course some will prosper through their own efforts in nieche sales. But it takes very little to flood these markets, one only has to look at manuka honey. Didn't take long to flood that one!
What we need is stability in international markets. Can't see that happening any time soon with the currant actors on stage.
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