Saturday, April 27, 2024

Meat exports still face uncertainty

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The meat industry faces considerable uncertainty in export trade access and domestic politics, Meat Industry Association chairman John Loughlin and chief executive Tim Ritchie say.
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In the foreword to MIA’s 2017 annual report they said the withdrawal of the United States from the Trans Pacific Partnership had focused the hopes of exporters on the replacement TPP 11.

“Of particular importance to us is the creation of a level playing field in certain markets, such as Japan, where competing countries already have significant tariff advantage through bilateral trade agreements,” they said.

Brexit had also created trade uncertainty for $1.5 billion of annual trade in New Zealand lamb to the European Union 28.

That trade included the leading market for lamb legs, the United Kingdom, which could account for a third of the entire value of a lamb carcase.

The MIA and Beef + Lamb NZ had committed to putting a senior person in London for two years to ensure the voice of the NZ meat industry was heard at this critical time.

“It is heartening that the anti-globalisation rhetoric does not seem to have entirely taken hold around the world,” they said.

MIA members welcomed new trade talks with the EU, the Pacific Alliance of Chile, Colombia, Mexico and Peru and the TPP 11 negotiations.

The new access for chilled meat and blood products to China and the renewed access to Iran were welcome.

The MIA published a blueprint for partnership with the government and met MPs for more detailed discussions.

It also provided field trips for MPs and Ministries of Foreign Affairs and Trade and Primary Industries ministries.

Exports of sheep meat, beef and co-products in the year ended June 30 were $7 billion, some $600 million less than the previous year. Beef prices declined from their high levels and exchange rate movements also contributed.

Two major export markets were almost equal, the US with $1.59b and China with $1.44b. Exports went to 122 countries, 17 of them taking more than $100m each. Beef returned $2.7b of value from just under 400,000 tonnes of volume.

The sheep meat volume fell 9% to 373,312 tonnes but the drop in value was smaller, being 4% down to $2.86b.

Co-products returned $1.46b, the biggest category being hides and skins at $380m, down 16% in value from the year before.

Italy remained the biggest market for bovine hides, China for sheep pelts and Japan for edible offal.

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