The red meat sector earned $11 billion in export revenue in the year ended June 30, 37% of which, or $4b, came from China, the Meat Industry Association has reported.
In its annual report, the MIA said beef export revenue was $4.6b or 42% of the total, sheepmeat $4.3b and co-products $2.1b.
North America was the second-biggest destination, returning $2.6b, of which 56% was beef.
Total export revenue was up 20% on the previous financial year, 2020-21, MIA chair Nathan Guy and chief executive Sirma Karapeeva wrote.
However, challenges for the meat industry meant that the volume of exports was down on the previous year and processors were not always able to maximise the value of meat products.
“Strong global prices and a favourable New Zealand dollar have helped to mask the drop in volume and the impact of processing constraints and deliver the revenue values reported.”
Exports went to 108 different countries and while exporters remain very conscious of diversification they cannot ignore the revenue China is providing for their shareholders, the MIA said.
Consumers are demanding higher standards of environmental care, a growing demand for sustainable products and a notable shift in the way brands behave, produce, package and distribute products.
Guy and Karapeeva referenced the Pasture Raised Advantage Project, which compares the nutritional benefits of pasture-fed NZ red meats with grain-finished beef and plant-based alternatives.
“Results from the research to date have concluded that red meat is probably a better source of protein for the body than highly processed plant-based products that are promoted as meat alternatives.”
Revenue from North America increased 27% compared with the year before and China’s share fell from 40% to 37% while its spending increased 13%.
Because of labour constraints some products such as offals were sent to rendering instead of adding value and the companies estimated this may have been a loss as high as $200 per head of cattle at times.
The MIA estimates the loss overall for the industry as $600m.
The United Kingdom took products worth $500m but chilled exports were the lowest for 20 years because of logistics challenges.
China’s appetite for beef came in for special mention, the export revenue increasing by 46% to $1.9b.
NZ beef was fourth in volume for China, after Brazil, Argentina and Uruguay.
Since the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018, Japan’s purchasing of NZ beef has more than doubled in volume and was worth $324m last year, our third-largest market.
The volume of sheepmeat exports was down 10% and the lowest since 2011-12, however the value went up by 12% to $4.3b and the average FOB value for the year was $11.82/kg, up 24%.
In the US, our lamb was worth $18.52/kg FOB and that market overtook the UK as second-largest after China.
UK chilled lamb trade suffered a reduction of 52% and that was the lowest annual volume for 20 years.
The MIA adopted the term “fifth quarter” for what it previously called co-products — casings, tripe, offals, tallow, meat meals, skins and hides.
That $2b collection included tripe at $180m, casings at $194m and edible offals at $369m, up 23% on the year before.
Hides and skins earned $267m, tallow $269m, meat and bone meal $194m and prepared and preserved meats $255m.
