Saturday, March 30, 2024

Lamb returns up 26%

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Average lamb values in the latest export year were 26% higher than the average for the last five years. For the first time average values remained above $10,000 a tonne every month, Beef+Lamb NZ said in its season review. 
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The last time prices were at those levels, in 2010-11 and 2011-12, the milestone figure was reached just occasionally.

The final average for the June 30 year was $10.46/kg and $10,460 a tonne. 

That was a 17% lift on the previous season, B+LNZ chief economist Andrew Burtt said.

Mutton volumes and values rose very strongly and beef exports maintained the high values of recent years.

Overall, red meat exports for 2017-18 exceeded $6.7 billion. That was a $1.2b or 21% gain on the year earlier.

The figures exclude veal and co-product exports.

Lamb  export receipts were more than $3.1b, up 25% on 2016-17 and 28% on the five-year average.

Mutton receipts were $618 million, up 46% year-on-year. The average value of $6580/tonne was 23% up year-on-year and 30% higher than the five-year average.

Beef export receipts were over $3b, up 14% year-on-year and 17% up on the five-year figure. The average value of exports was up 2% to $7320/tonne. 

Total beef receipts were helped by a 7% lift in volumes, including greater volumes to China with average values there being 7% higher at $6590/tonne, slightly higher than values of manufacturing beef sent to the United States.

In the latest year more manufacturing beef was sent to China, whereas in recent years secondary cuts such as shanks and knuckles made up most of the volumes.

China now accounts for a third of NZ’s red meat exports and is the largest export market by volume and value. 

The US remains the biggest beef market but its share of exports fell a couple of points to 47% as volumes to China increased.

Beef volumes increased because more dairy cows were culled in response to lower farmgate milk prices in 2014-15 and the following year. 

Confidence in the US manufacturing beef market mean more dairy sector bull calves are being raised in the beef sector.  

While the record lamb and mutton values provide the highlights beef has retained its highs since the marked increase in 2014-15, Burtt said.

The strong values applied across the species throughout the season, even during the fast start to processing caused by the very dry December conditions last year. 

Mutton exports benefited from limited international supply and strong demand.

Burtt said total export receipts include the price paid to farmers and the value added to products through processing.

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