TheMeatSite.com - TheMeatSite.com - news, features and articles for the meat processing industry

News

New Zealand Lamb Export Volumes Fall while Values Rise

24 April 2014

NEW ZEALAND - A smaller lamb crop in New Zealand has contributed to a decrease in total exports of lamb over the first half of 2013-14, compared with same period last season.

However, there has been an increase in average value, which has translated to total lamb exports rising in value by 11 per cent.

An early processing season pushed mutton exports up significantly.

However, this is expected to balance out in the second half of the season. Mutton exports averaged NZ$5,310 Free on Board (FOB) per tonne, up 14 per cent on the same period last season.

Meanwhile, beef and veal exports were stable in both volume and value.

October 2013 to March 2014 exports
Annual percentage change
  Tonnes NZ$ FOB NZ$ FOB per tonne
Lamb -2.5% +10.8% +13.6%
Mutton +25.9% +43.9% +14.3%
Beef and Veal -0.4% +0.4% +0.7%

 



 
  
   
  

Sheep Meat Exports

Lamb exports

Total exports of lamb decreased by 2.5 per cent over the first half of the 2013-14 season, compared with same period last season, reflecting a smaller lamb crop. The decrease in volume, to 158,200 tonnes shipped weight, was offset by a 14 per cent increase in average value. As a result, the total value of lamb exports rose by 11 per cent to NZ$1.33 billion FOB.

Lamb exports averaged NZ$8,430 FOB per tonne over the six months. The European Union remains the largest market region, accounting for 42 per cent of New Zealand’s lamb exports by volume and worth NZ$675 million FOB. North Asia is second, accounting for 33 per cent by volume and worth NZ$311 million FOB. However, the European Union’s market share is on a downward trend, while North Asia is trending upward. Total returns achieved from North Asia averaged NZ$6,000 FOB per tonne, compared with NZ$10,200 FOB per tonne from the European Union, reflecting the different product mixes exported to the two regions.

Mutton exports

New Zealand’s exports of mutton increased by 26 per cent over the first six months of the season, compared with the same period of the 2012-13 season, reaching a record high of 61,700 tonnes shipped weight. The rise in exports reflects an early processing season. It is anticipated mutton exports will drop in the second half of the season, resulting in a year-end total lower than last season.

As Chinese demand rises, New Zealand’s mutton exports are shipped to a smaller range of destinations. China accounted for 72 per cent of New Zealand’s mutton exports in the first half of 2013-14, compared with 52 per cent in the same period of 2012-13. Exports to the United Kingdom – the second-largest market – declined over the same period.

In the first half of 2013-14, the volume of boneless cuts exported almost halved, while the share of carcasses more than doubled, reaching 36 per cent of total volumes exported. These changes reflect a tremendous rise in demand for carcasses from China.

In the first six months of 2013-14, the total value of mutton exports increased by 44 per cent, to NZ$330 million FOB, as a result of increased volume and increased average value. The exports averaged NZ$5,310 FOB per tonne, up 14 per cent from the same period last season.

Beef and veal exports

Total exports of beef and veal were almost unchanged compared with the same period in 2013-13 – down only 0.4 per cent – at 189,600 tonnes shipped weight. There was a decline in exports to North America, North Asia and the European Union, partly offset by an increase in exports to South Asia and the Middle East. Exports to Indonesia increased fourfold in the first six months of the season and accounted for 4.7 per cent of New Zealand beef and veal exports.

The total value of beef and veal exports slightly increased to NZ$1.1 billion FOB. Receipts for beef and veal averaged NZ$5,880 FOB per tonne in the first half of 2013-14, up 0.7 per cent on the same period last season.

The average value received from North Asia was NZ$6,210 FOB per tonne, compared with NZ$5,240 FOB per tonne from North America. This reflects the product mix exported to the different regions. Exports to North America contain a higher proportion of ingredient beef that will be further processed before being consumed, while shipments to North Asia include a higher proportion of cuts that are case ready.

 

TheMeatSite News Desk

Top image via Shutterstock



Our Sponsors

Partners


Seasonal Picks

Meat Cuts and Muscle Foods - 2nd Edition