New Zealand Exports Rise in Value18 July 2014
NEW ZEALAND - Despite the high New Zealand dollar, particularly during the main export months of January to June, there was an increase in the average value for lamb, mutton and beef/veal.
Beef + Lamb New Zealand said that a smaller national lamb crop flowed through to reduced lamb export volumes.
However, for only the fourth time in history, lamb exports exceeded NZ$2 billion Free On Board (FOB) in the first nine months of a season.
This 2013-14 season has seen high levels of mutton processing, but this is starting to drop off and is expected to continue easing until the end of the season.
The high mutton throughput reflects early processing and the impact of dairy conversions.
Meanwhile, beef and veal exports were up, with higher volumes exported since April.
|Annual change per cent|
|Tonnes||NZ$ FOB||NZ$ FOB per tonne|
|Lamb||-3.6 per cent||10.5 per cent||14.6 per cent|
|Mutton||17.1 per cent||32.1 per cent||12.9 per cent|
|Beef and Veal||4.4 per cent||5.8 per cent||1.3 per cent|
Total lamb exports decreased by 3.6 per cent to 247,700 tonnes shipped weight in the first nine months of the season, compared with the same period last season. June was particularly low – down 13 per cent, compared to June 2013 – accounting for 40 per cent of the decline in volumes in 2013-14. The decline in lamb exports is expected to persist until the end of the season. As supply tighten, the average value of lamb exports increased.
Over the first nine months of the season, the average value of lamb exports was NZ$8,320 FOB per tonne – up 15 per cent on the same period last season. The total value of lamb exports rose by 10 per cent, to NZ$2.06 billion FOB. It is the fourth time in history that lamb exports exceeded NZ$2.0 billion FOB in the first nine months of a season.
Lamb exports to the European Union decreased by 5.9 per cent, partly offset by a rise in exports to North Asia – up 2.4 per cent. This change in export destinations includes a change in the allocation between chilled and frozen lamb. Exports of chilled lamb decreased by 6.1 per cent, compared to a 2.8 per cent decline for frozen lamb.
New Zealand’s exports of mutton increased by 17 per cent over the first nine months of the season, compared with the same period last season, reaching a record high of 81,700 tonnes shipped weight.
Mutton exports were consistently above 2012-13 levels from October to March, but since April volumes started to decline and are expected to continue declining.
In June, mutton exports fell by 21 per cent, compared to June 2013. The high level of mutton processing to date this season is partly due to dairy conversions, but also due to greater numbers of ewes processed earlier.
In the first nine months of the season, the total value of mutton exports rose by 32 per cent, to NZ$429.2 million FOB. Mutton exports averaged NZ$5,250 FOB per tonne, a 13 per cent increase on 2012-13.
Driven by China, the trade of carcasses continued to strengthen at the expense of higher value cuts.
In addition to mutton carcasses having a lower average value than other cuts, their value increased less than the value of other cuts over the first nine months of 2013-14, compared with the same period last season.
Mutton carcass exports averaged NZ$4,650 per tonne in the first nine months of the 2013-14 season, up 7 per cent, while the average value of bone-in and boneless cuts increased by 23 and 25 per cent respectively to NZ$5,100 and NZ$7,330 per tonne.
Beef and veal
Over the first nine months of the meat export season, beef and veal exports increased by 4.4 per cent to 312,700 tonnes shipped weight – the second highest level ever recorded. After remaining stable in the first half of the season, compared to the same period last season, beef and veal export volumes rose strongly in May and June (up 17 per cent and 20 per cent, respectively).
The total value of beef and veal exports increased by 5.8 per cent – to NZ$1.85 billion FOB. Beef and veal exports averaged NZ$5,900 FOB per tonne over the first nine months of this season, up 1.3 per cent on the same period last season.
Average returns achieved from Asian markets increased over the first nine months of the season, compared with the same period of 2012-13, while the average value received from North America was down on last season. The average value of beef and veal exports was up 5.3 per cent for North Asia, up 3.9 per cent for South Asia and down 1.5 per cent for North America.
Beef and veal exports to North Asia averaged NZ$6,230 FOB per tonne in the first nine months of the 2013-14 season, while the average value was NZ$5,550 for South Asia and NZ$5,280 for North America. The differences reflect the product mix exported to each region.
With regard to processing beef exports, the average value of processing beef exported to North America was ahead of returns achieved from Asian markets. The average value received for processing beef from North America was NZ$5,060 FOB per tonne, compared with NZ$4,670 per tonne from North Asia and NZ$4,240 from South Asia.
TheCattleSite News Desk