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photo: 123 RF
A craze for beef burgers and a renewed love for lamb are keeping New Zealand’s red meat industry buoyant, while demand from China remains weak.
New Zealand’s red meat exports to the United States and Canada have increased this year.
Data from the meat industry association shows that North America is the country’s largest red meat export market – surpassing China to take the top spot for the first time in April.
The latest data shows that India’s exports to the United States increased by 28% in May compared with the same period last year, bringing $358 million in revenue to the Indian economy in that month alone.
James McWilliam, global sales director of the Red Meat Cooperative Alliance Group, has just concluded a week-long trip to the North American market.
He said beef sales there were good.
“Obviously, the North American beef market has been pretty strong this season, and that’s certainly helped to offset some of the really lackluster demand that we’ve seen in other parts of the world.”
McWilliam said co-ops can fill a demand gap left by the declining U.S. dairy cow population, which is now at its lowest level since the late 1970s.
“We took full advantage of this, especially by mobilising a large number of production lines to produce delicious burgers.
“No country in the world loves burgers as much as North Americans do. So, relatively speaking, the returns on our meat products sold in North America are very good.”
He said the forecast for the beef market over the next month remains quite strong.
New Zealand meat industry faces ‘extremely difficult’ situation
But McWilliam said slowing demand in China had led to a very difficult year for the industry.
“The global outlook remains very uncertain and this is an extremely difficult season for growers, producers and of course processors and marketers,” he said.
“The China pillar has really been a drag on us over the last year or so.”
But he said people were optimistic that the situation would improve.
“We are always looking at China. China remains an important market, both in terms of volume and value.”
The possible impact of the US presidential election on foreign imports
McWilliam said the alliance would be in a “very strong position” to respond if there were any changes to US market access requirements after the November election.
US presidential candidate Donald Trump has promised voters that he will impose higher tariffs and tighten quotas on all products imported into the United States.
Alliance is one of a handful of Australian meat companies, along with ANZCO and Silver Fern Farms, that own stakes in a cooperative supply business, The Lamb Company, which has a network of retail packing, processing and offices across North America.
McWilliam said the coalition would closely monitor any market access changes that might emerge after the November election, and said Lamb Company gave it a “significant competitive advantage.”
“We are very well positioned because of our majority ownership of Lamb Company’s North American operations, and North American import tariffs are typically backed by quotas,” McWilliam said.
“As a significant shareholder in this entity, we will receive the largest share, so to speak, which will allow us to continue to bring our products to this market.
“We will continue to monitor and observe future developments and adjust accordingly.”
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