Tuesday, March 19, 2024

MIA wary as second wave hits

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New Zealand’s red meat trade continues to generate crucial export revenue but with the full economic impact of covid-19 yet to hit, the industry cannot afford to be complacent.
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Meat Industry Association (MIA) chief executive Sirma Karapeeva says the red meat processing and exporting sector has been NZ’s success story during the covid-19 crisis but with further disruptions in the global markets expected, she urged caution. 

“The red meat processing and exporting sector has been a real success story during the covid-19 crisis and continues to generate crucial export revenue for the country when other sectors are facing significant headwinds,” she said.

“However, we cannot be complacent, we are yet to see the full economic and social impact of covid-19.

“With the UK, Europe and parts of the US going into a second lockdown, we can expect further disruptions in our global markets. 

“We are also concerned about potential disruptions to shipping lines from Europe, the impact of the last drought in NZ and the prospect of extreme dry conditions in the coming months.

“This means the uncertainty and volatility will continue for some time.”

Meanwhile, the NZ red meat sector continued to demonstrate its agility in the third quarter with exports to the US growing by 50% over the three months from July to September compared to a year earlier.

Total exports to the US reached $400 million for the quarter, closely followed by a 42% rise to the UK to $71m, and Germany a 25% increase to $70m.

The growth in the third quarter offset a 25% decline, $530m, to China despite the value of sheepmeat and beef exports to China remaining at an historically high level.

Overall, exports in the third quarter were $1.69 billion, unchanged from the same period in 2019.

For the year ending September 2020, exports were up 8% to $9.39bn compared to the previous year.

The value of exports to almost all of the top 10 markets, except the Netherlands, increased.

In the September month, overall red meat exports were worth $501m, down 6% from September 2019.

Both China and Japan were down, but there were increases to the US, Germany and UK.

Sheepmeat exports to the US, Germany and the UK rose, as did beef exports to the US and Canada.

Karapeeva says the trade data was positive, especially given the volatility because of covid-19.

There has been some shift from chilled to frozen product for sheepmeat as the industry pivoted away from the challenging food service sector into retail and e-commerce. 

There was also some rebalancing to other markets from the record levels that were going to China last year. 

“This demonstrates the industry’s ability to adjust product specifications and destinations to meet the demand from our global markets,” Karapeeva said.

“There are indications that demand in China will continue to increase and we anticipate strong buying patterns as China prepares for its Chinese New Year celebrations next year.”

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