A 9% drop in global red meat prices in December took the edge off NZ export receipts for 2022, but they were still 13% higher than the previous year at $11.4 billion.
An analysis by the Meat Industry Association (MIA) reveals December’s 9% drop in export receipts was driven by a 19% decline from sheepmeat, to $338 million, a 15% fall in beef, to $428m, and fifth-quarter products falling 9% to $200m.
The largest drop in dollar terms was from the Chinese market, with December 2022 exports down by 21% to $357.6m, while the United Kingdom dropped 53% to $25.8m.
MIA chief executive Sirma Karapeeva said global inflation eroded demand and prices as consumer purchasing power declined.
“Some consumers in our key markets are trading down to cheaper proteins and dining out less in restaurants,” she said.
“For beef, we are seeing record imports of beef into China from Brazil.
“The relaxation of China’s covid-19 policy has also created some uncertainty in the market.”
China remains New Zealand’s major market for red meat with sales of $4.3b in 2022, a 5% increase on 2021. Exports to the United States also increased, up by 7% to $2.3b.
Sales to Japan increased 20% to $561m and to the UK they grew 11% to $464m.
Sheepmeat export volumes fell 5% to 375,716t for the year but values increased 6% to $4.3b.
The average free on board (FoB) value of sheepmeat exports in 2022 was $11.56/kg compared to $10.37/kg in 2021.
The volume of beef exports also fell 5% to 482,875 tonnes, but values increased 20% to $4.9b. The average FoB value of beef exports in 2022 was $10.07/kg, up from $8.02/kg in 2021.
China was the largest market for beef during the year, taking 4% more to 219,340t and the value increasing 34% to $2.1b.
Exports to the US fell 22% by volume to 126,177t and 5% by value to $1.3b due to high domestic production caused by drought.
Sales of fifth-quarter products exports were worth $2.2b, up 13%, with the greatest demand for casings and tripe, up 29% to $440m. Sales of edible offals increased 3% to $357m and hides and skins rose 23% to $305m.
