Free trade agreements deliver NZ beef, lamb savings

The savings would continue to grow as tariffs continued to reduce and export volumes rose, the industry body claimed.

The beef and sheep sector’s export returns for the period total $7.7 billion, with the amount in tariffs paid falling from $331m in 2013 to $326m in 2014.

B+LNZ chief executive Dr Scott Champion said the increased tariff savings had been hugely helpful, giving exporters the flexibility to viably sell products into more markets.

China and Taiwan​

He said the decrease in tariffs paid was largely a result of New Zealand’s FTAs – particularly with China and Taiwan.

“As market access for our red meat products continues to improve as more FTAs come into force, and tariffs are further phased out within existing FTAs, those savings can only grow,”​ he said.

Export statistics compiled for the first nine months of the 2014-15 meat export season (1 October 2014 – 30 June 2015) show beef and veal returns and volumes have been higher than lamb and mutton.

This was largely to do with changes in Chinese demand – specifically, the country imported less lamb and mutton and more beef – and this impacted across all categories of New Zealand meat exports.

Export values​

Meanwhile, the New Zealand dollar fell 10% against the US dollar compared to the same period last year; this weakness contributed to this season’s higher average export values across all products.

Despite more lambs being processed, New Zealand lamb exports declined 4% to 237,780 tonnes (t) shipped weight in the nine months to June 2015, compared with the same period in the previous season. This was led by a fall in demand from China.

After increasing year-on-year since 2009-10, lamb exports to China fell 12% in the first nine months of the season compared with the previous season. New Zealand lamb cut exports to China held over the period, but lower-value exports, like carcases, dropped.

Lamb exports to the EU were up 4.7%. This reflected higher export tonnages to Germany, the Netherlands and Belgium, offset by lower exports to Great Britain, the largest market for New Zealand lamb.

Due to dry conditions early in the summer, New Zealand lambs were finished and exported to Great Britain a little earlier than normally.

Strong demand for beef​

Strong demand for beef, a weaker New Zealand dollar against the US dollar and high New Zealand beef production resulted in a 37% rise in beef and veal export revenue over the first nine months of the season, compared with the previous season.

Dry conditions early in the summer and low milk prices led to an earlier and extended dairy cow cull than previous years.

From October 2014 to June 2015, New Zealand beef and veal exports reached 340,430t shipped weight – up 8.8% on the corresponding period last season.

Export tonnages to the US and China increased by 23% and 38% respectively. For the first time, beef and veal exports to China overtook mutton exports in terms of volume.