NZ Beef Exports Slow In June

NEW ZEALAND - NZ beef exports in June were back 13 per cent year-on-year, to 32,978 tonnes swt, with shipments to key markets including the US, South East Asia and Korea all declining.
calendar icon 21 July 2011
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Meat & Livestock Australia

According to Meat and Livestock Australia, total beef exports for the first half of 2011 were 212,867 tonnes, eight per cent lower than the same period in 2010.

Exports to the largest market for NZ beef, the US, fell 13 per cent year-on-year in June, to 15,358 tonnes swt, while a 36 per cent drop to South East Asia (3,303 tonnes), six per cent drop to Greater China (3,183 tonnes) and 11 per cent decline to Korea (3,074 tonnes) contributed to the overall tightening. The only major markets to record significant increases were Canada and the EU, with shipments up 25 per cent, to 2,567 tonnes and 47 per cent, to 1,638 tonnes, respectively.

The main driver of the smaller shipments in June appears to be relatively weak demand for NZ beef in key markets. US production in 2011 has been well up due to drought across much of the south of the country, which has seen domestic cow prices drop, feeding into lower imported beef prices. The higher US production and relatively weak US$ have also combined to make US beef exports more competitive in important markets such as Japan and Korea.

Indonesian import restrictions also had a significant effect, although licenses have been issued in recent weeks, boding well for the second half of 2011. This is expected to combine with lower slaughter through to the end of the season in September to relieve some price pressure on exporters.

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