Red meat exports reach record $10 billion in 2021

Friday, 4 February 2022

Export value of New Zealand meat hit a record amount last year.

New Zealand’s red meat sector exports reached $10 billion last year, a 9 per cent increase compared to 2020.

Meat Industry Association (MIA) figures show that for the month of December 2021, the value of red meat exports was up 22 per cent on December 2020, at just over $1 billion for the month.

The 2020 annual value of meat exports was $9.2b.

China is New Zealand’s largest beef export market. It took 46 per cent of exports for the final quarter, followed by the US and Japan.

* Meat exports up as supply and demand favours NZ farmers

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Meat Industry Association chief executive Sirma Karapeeva says the industry grew despite Covid-19 labour issues and export frustrations.

The Chinese Government wants to halve meat consumption in the country by 2030. (First published July 6, 2021)

Despite no change in the volume of beef exported to China for the 2021 final quarter compared to the 2020 quarter, the dollar value of those exports rose by a third.

Exports to the US dropped by 15 per cent by volume but increased by 16 per cent in value for that quarter. Exports to Japan remained the same at 7 per cent of volume but grew 39 per cent by value.

“Despite all the disruptions and labour shortages, we were able to make the most of the global demand for red meat and generate record export revenue,” MIA chief executive Sirma Karapeeva said.

“The sector is continuing to perform for New Zealand in the most difficult conditions.”

She expects supply chain challenges will significantly disrupt exports for some time to come.

The red meat industry is New Zealand’s second-largest goods exporter, generating 16 per cent of New Zealand’s export revenue in 2019/20. MIA says the industry employees 25,000 people.

“This illustrates very clearly how critical it is for the industry to have access to sufficient labour including overseas migrants to capture the greatest market value and support the jobs of thousands of hard-working Kiwis,” Karapeeva said.

Sheep meat and beef exports increased by 5 per cent and 9 per cent year-on-year respectively, with both worth more than $4b for the year.

Co-products exports also increased by 19 per cent, to almost $2b.

Karapeeva said exporters had responded to adapt to changing logistics by converting chilled product to frozen at times the supply chain was at risk

Chilled sheep meat exports to the UK dropped by 42 per cent in December, to the lowest volume in 25 years, but frozen sheep meat exports to the UK increased by 95 per cent.

Sheep meat export volumes to China dropped by 15 per cent in the fourth quarter. But the value of sheep meat exports to China increased by 3 per cent in the same period.