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Prices for beef and sheep meat rising fast in China, as are our exports

Posted in Rural News
Prices for beef are up 34% in a year in China; sheep meat prices are up 13%

In February, Chinese food prices went up by 6.0% year-on-year, representing a 2 percentage points increase in the overall price rise of 3.2% in their CPI.

And most of that increase was for beef and lamb.

For New Zealand exporters this represents a significant opportunity.

Beef prices have risen 34% in a year; prices for sheepmeats are up 13% according to February price data published by the Chinese statistics authority yesterday.

At the same time, the NZ dollar has actually depreciated by 0.5% against the Chinese yuan, although it appreciated by 0.5% against the US dollar, according to RBNZ average monthly exchange rate data. These are tiny movements on a year-on-year basis (Feb-on-Feb) although the intervening period has seen greater variability.

New Zealand's meat trade with China has started to grow very strongly in recent years, although off a fairly modest base. It is not so modest anymore.

Beef products accounted for NZ$62.1 million in exports in the year to January 2013, up NZ$50 million or almost 400% on the previous year. Sheep meat products are worth considerably more, achieving $364 million in the year to January 2013, and these grew $161 million or 78%, in that annual period.

Both beef and sheep meat exports have been growing strongly for a number of years and the rate of increase is rising.

The growth in the China market more than offset falling lamb demand in the traditional UK markets where we exported $30 million less in the year to January 2013. The fall was even greater in the US where the decline exceeded NZ$60 million.

Sheep meat exports to UK USA China
year to $ mil $ mil $ mil
January 2011 593.3 267.8 124.1
January 2012 571.3 301.7 204.0
January 2013 542.6 240.0 364.2

 

Beef exports to UK USA China
year to $ mil $ mil $ mil
January 2011 28.6 768.3 8.7
January 2012 38.0 781.3 12.8
January 2013 29.5 944.1 62.1

 

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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1 Comments

errrr...... Auckland's

errrr...... Auckland's property price may have something to do with it as well.
 
One side of coin?