Saturday, March 30, 2024

Record sheep meat exports

Avatar photo
Lamb and mutton exports in the October to December period were a record, with China again driving gains in volumes and returns.
Reading Time: 2 minutes

A lot of the gain also results from a faster early season for processing, for sheep meat as well as for the cattle sector, because of dry conditions, Beef + Lamb New Zealand chief economist Andrew Burtt said.

Farmgate prices for the quarter for lamb rose 30% year-on-year and mutton by 59% with beef up just 5%.

“Average values per tonne started at a high level after the strong growth in 2016-17 and have remained strong despite higher processing volumes so far,” Burtt said.

B+LNZ expects overall annual supply of lamb and beef to be similar to last year but for mutton to fall by 9%.

In the December quarter, the first of the trading year, mutton export volumes were up 46% on the same time a year earlier, to 21,800 tonnes, the highest level since sector subsidies were lifted in the mid-1980s, with China taking up most of the increase.

Burtt said mutton receipts were $146 million, nearly double the 2016 quarterly figure, and well above the previous record of $96m in 2015. The average value per tonne was also a record at $6680/t, a 32% gain over the same time a year earlier.

Receipts from China alone totalled $106m. That was a 276% increase year-on-year and made up 73% of total mutton receipts.

Lamb export volumes for the quarter rose 21% to 64,700 tonnes but the receipts jumped 47% to $677m, also a record. Demand from China was particularly strong, with receipts from there up 114% to $164m.

China volumes rose by 9300t to 23,800t and the gain was supported by a 31% increase in the (FOB) value per tonne. 

For the overall lamb market, the per tonne (FOB) value rose 22% to $10,460.

Beef and veal exports brought in $588m for the quarter, a 29% gain, and the second highest on record after the December period in 2015-16.

Volumes rose 21% to 78,900 tonnes, slightly lower than 2015-16.

Beef prices have been strong so the per tonne increase in value is much lower than for the recovering sheep meat products but still managed a 6.3% rise to $7450. This was the third highest on record, after 2014-15 and 2015-16.

As with lamb and mutton, the volumes were because of the early processing of bulls and cows because of dry conditions rather than an indication of increases over the entire season, Burtt said. 

During the quarter, the United States took 43% of NZ’s supply, with receipts being $231m. The average value to the US rose 11% to $6760/t. Just under 90% of the supply to the US for the period was for blending with US beef in the manufacturing market.

China, the second biggest market, with a 22% quarterly share, took 53% more in volume, up to 17,300t, worth $127m at an average per tonne of $7340. 

Total
0
Shares
People are also reading