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AIMAN AMERUL MUNER/Stuff
The cost of living is having an effect on the red meat sector at home, and volatile overseas markets have led to a drop in sheep meat exports. (File photo)
The cost of living is having an effect on the red meat sector at home, and volatile overseas markets have led to a drop in sheep meat exports.
The Meat Industry Association said red meat exports reached $935 million in June, with sheep meat exports down 20% by volume to 25,369 tonnes and 28 per cent by value to $281m.
Sheep meat exports to China dropped by 21% in value (to $89.4m) compared to June last year.
Southland Federated Farmers president Chris Dillon said the schedule [the price meat processors pay farmers for their meat] had dropped.
”It’s causing a fair bit of concern amongst the sheep and beef guys. There’s not a lot of positive feeling out there at the moment, especially with all the additional rules and regulations that are being thrown at us as well,’’ he said.
Federated Farmers was planning meetings to help farmers come up with strategies to deal with the situation, he said.
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Alliance Group general manager livestock and shareholder services Murray Behrent said, ““Our livestock pricing reflects what prices we can capture for our farmers’ products in our global markets.”
Alliance Group general manager livestock and shareholder services Murray Behrent said the co-operative’s own inventory was on a par with levels in previous years.
“Our livestock pricing reflects what prices we can capture for our farmers’ products in our global markets. Like all red meat exporters, Alliance Group is facing challenging global market conditions with demand and pricing weaker.
“This is being driven by persistently high inflation levels reducing consumers’ discretionary spend. This has led to a decline in people eating out in restaurants and some shoppers trading down from higher priced red meat proteins such as lamb in their weekly grocery shops.”
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Meat Industry Association chief executive Sirma Karapeeva said the drop in sheep meat volumes reflected tough conditions in many markets.
He said there was consistently high levels of inventory across all proteins in various markets, which was driving down demand for fresh product.
“The Chinese economy is recovering slower than anticipated following COVID-19 and consumers there are more cautious with their spending. Recent information out of China suggests the current slowdown in demand will continue through the short to medium term, which has led to us diversifying into other markets for some products. The situation is also compounded by Australia producing increased volumes of sheep meat and beef.
Meat Industry Association chief executive Sirma Karapeeva said the drop in sheep meat volumes reflected tough conditions in many markets.
1 NEWS
While consumers face higher prices for meat and dairy, the silver lining is record export earnings for our food sector. (Video first published June 11, 2022)
Sheep meat exports to Taiwan, where consumer confidence was reported to be at its highest level since May 2022, rose 51 per cent by volume to 857 tonnes and 46 per cent by value to $10m.
Beef exports were up 12% on June 2022 to 52,773 tonnes, but the value was down three percent to $477m.
She said China was down 26% to $158m, Japan down 48% to $23m and Korea down 70% to $8m.
“This compares to historically very high exports to Japan and Korea in June 2022, but the value of exports is still below most recent June months. Taiwan saw a 35% increase to $21m and Canada a 247% increase to $18m from a very low level of exports last June.’’
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