The red meat industry put on a burst of vigour at the end of last year in contrast with a long spell of overall gloom .
The value of exports for December rose 17% over a year earlier to reach $1.04 billion, according to the Meat Industry Association (MIA).
This number is being welcomed as a positive sign of resilience by MIA chief executive Sirma Karapeeva.
The biggest market remained China on $313 million for December, but this number remained static from the previous December.
Exports to the United States, by contrast, surged 38% and approached the Chinese number, at $310 million. Sales to the United Kingdom rose 53% to $64 million, and sales to Canada grew 116% to $46 million.
Price trends helped New Zealand exporters, because volumes of sheepmeat fell slightly, only to be eclipsed by a far greater rise in prices. There was a similar though less marked experience for beef.
These are promising signs, according to Karapeeva.
“The resilience of New Zealand’s red meat sector, along with strategic market diversification, has helped us navigate global challenges,” she says.
“The increase in chilled exports also highlights ongoing consumer demand for high-quality New Zealand meat.”
But Karapeeva concedes the news is not all positive and the recovery of late last year failed to overcome long-term problems that dog the industry.
She says challenging market conditions earlier in the year contributed to an overall three per cent decline in total exports on an annual basis, to $9.86 billion.
In a continuation of trends from earlier in the year, the US was the largest market for annual sales, with exports increasing 12 per cent to $2.77 billion. Commentators have said this trade is dominated by beef for the US hamburger market.
China remained the second-largest market on an annual basis, despite a 31% fall in purchases of New Zealand meat, which left the final figure for the year at $2.49 billion.
However, there was strong growth in the UK (up 46 per cent to $525 million), Japan (up 23 per cent to $475 million), and Canada (up 44 per cent to $424 million).
“The NZ-UK Free Trade Agreement continued to show its value,” Karapeeva says.
“Beef exports to the UK reaching 4,417 tonnes, worth $57 million, making it the ninth-largest market by volume and eighth-largest by value.”
Total sheepmeat exports declined in both volume and value, while beef exports declined in volume but held their value. Chilled exports of beef and lamb did well.
The problems of the meat industry have been highlighted by large financial losses at one of the two big companies, Alliance Group, whose grim balance sheet was made worse by huge restructuring and site restoration costs at its closed factory in Timaru.
Attempts to recapitalize the company with payments from its farmer-shareholders look unlikely to be successful, and a cornerstone shareholding that dilutes the company’s co-operative status is looking more likely.
Silver Fern Farms also made a loss in its last year, though both companies are forecasting better times when they reveal their next financial report.
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