New Zealand red meat exports topped $750 million last month

Although volumes were lower year-over-year, red MEAT exports from New Zealand rose in value in February. Red meat exports last month totaled NZ$1.1bn ($762m ) with an increase in value across all major markets.

According to figures released by the Meat Industry Association (MIA), mutton exports are down 11% and beef are down 7%, but high international valuations have helped the industry hedge against losses in overseas shipments. However, the industry should expect tough times ahead as the region is short on labor and supply chain disruptions have become more frequent.

“With meat processing staff forced to self-isolate during the covid-19 pandemic, there is increasing pressure on our industry, which is already facing significant labor shortages and global logistics challenges,” said MIA Executive DIRECTOR Sirma Karapeyeva. 

She added that the first signs of a shortage of labor in processing enterprises come to light by restricting the EXPORT of certain goods. “For example, although offal prices are still high, the volume of offal exports in February has decreased by about 35% compared to February exports in the previous six years, indicating that there are not enough personnel to process every part of the carcass and companies are unable to maximize the value of each processed carcass,” said Ms. Karapeeva, according to the NZ Herald newspaper.

Meanwhile, supply chain disruptions impacted chilled lamb exports, which fell 18%. The largest drop was recorded in shipments to the UK (-52%).

In February, the total value of exports to CHINA increased by 4%, to the US by 34% and to the UK by 28%, but most of the products supplied to the British market consisted of frozen meat.