Meat exports from New Zealand reported a drop in 2017
MPI forecasted a steadily expanding export revenue as production volumes will stabilize in the financial year 2017-2018. New Zealand's primary industry exports will rise 9.3% over the next year on the back of strong dairy prices and a return to normal productivity levels.
Furthermore, analysts from MPI say that beef export prices will remain relatively strong despite rising production globally.
Meanwhile, lamb prices increased, partially due to decreased Australian production because flocks there have been rebuilding following drought.
After the decline of 9.2% in the year ended June 2017, meat and wool export revenue is estimated to grow by 1.7% in 2018.
Beef and veal
MPI’s report says that beef production volumes returned to normal levels in the year ended June 2017 following two years of elevated production driven primarily by high dairy cow cull rates. Whereas, global beef prices were relatively strong in 2017 considering that production expanded in the US and Brazilian beef has gained market access to China and the US.
“New Zealand’s average export prices of beef and veal are expected to be slightly lower in 2018 due to a plentiful supply of global exportable supplies. Australian beef production is expected to increase following a rebuilding phase, and western hemisphere production is expected to continue growing. Rising global production will be offset by strong demand, including in China and of lean manufacturing beef in the United States,” the MPI report read.
Lamb and mutton
Lamb exports were $2.4 billion in the year ended June 2017, a decrease of $130 million from the previous year while production fell 6.2 percent.
Analysts at MPI expect that the total sheep population as at 30 June 2017 will be slightly lower than the previous year at 27.6 million head.
“Overall, lamb and mutton slaughter numbers were low relative to the total population, suggesting that more ewes may be retained for breeding. This should help the national sheep flock stabilize for the next year or two,” the report shows.
Photo Source: QFSE Media / Wikimedia Commons
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