15 Nov 2013

Beef export figures show rising dominance of China

7:56 am on 15 November 2013

Newly released meat export figures for the past year confirm the rising dominance of China.

Beef + Lamb New Zealand statistics for the year ending September show meat exports to China have grown rapidly from less than 1% of the total volume to 10% in just three years.

In the past year China became New Zealand's single biggest sheepmeat market, importing 131,000 tonnes of lamb and mutton, displacing the UK, which took 74,000 tonnes.

China accounted for 28% of lamb and more than half the mutton.

But Beef + Lamb chief economist Andrew Burt says the average value of lamb exports to China still trails well behind returns from longer established markets.

He says the average value that New Zealand is receiving from China is a bit over half what it's getting for lamb exported to the European Union.

Mr Burt says China takes a lower-value product, while the EU takes higher value across a broad range.The United States and Switzerland take an even higher value product but a smaller product range.

He says the average value for the US was about $11,500 per tonne, received in New Zealand, compared with $4800 from China and $9000 per tonne from the EU.

Mr Burt says New Zealand beef shipments to China also surged from 4% to 11% of total exports in the past year, but are still well behind the biggest market, the United States. It took almost half of New Zealand's beef and veal exports last year. Prices however, are similar.