Tag Archives: export

Frozen beef leads rise in export value for meat

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Frozen New Zealand beef led an increase in export value for meat and edible offal in July 2012, compared with July 2011, according to Statistics New Zealand (SNZ).

The latest figures show export value for meat and edible offal grew by $25 million (6.9 percent) during the period led by frozen beef, which increased by $22 million. Exports of beef to the US increased by $19 million, leading a $35 million (11 percent) growth in overall exports to that market. This corresponded to a $19 million fall in the value of beef exports to Indonesia.

Meat and edible offal is still trending upwards in value since its recent low point of February 2012, but is still 11 percent lower than its record high point in July 2011, according to SNZ.

Overall, the value of exported goods rose $296 million (eight percent) in July 2012 to $4 billion, compared with July 2011. This was led by a rise in the value of milk powder exports, says SNZ.

Imports rose $383 Million (11 percent) to $4 billion, with all three broad economic categories – capital, intermediate and consumption goods – rising in value.

The trade balance for July 2012 was a small surplus of $15 million (0.4 percent of exports). This compares with a surplus of $103 million (2.8 percent) of exports in July 2011.

Seasonally adjusted exports fell 0.4 percent and imports fell 1.5 percent compared with June 2012. Most major export commodities fell, offset by milk powder, butter and cheese, which rose 20 percent, reports SNZ.

In the news this week …

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We’re starting a new weekly round-up of the week’s top meaty news items. Changes to shipping arrangements have been front page news here in New Zealand and will probably be on the minds of delegates for next Monday’s Red Meat Sector Conference in Queenstown. But there’s also been a ‘world first’ for venison scanning, among other items.

Starting from next month, ports in Wellington and Nelson will be added to Maersk’s Southern Star run, which links New Zealand directly to the Malaysian hub port Tanjung Pelepas, according to the Dominion Post. The more reliable service with the dedicated hub will attract chilled meat exporters, Centreport’s operations general manager Steve Harris is quoted as saying, ” … because the time that the product is on the shelf in Europe … is critical.”

This followed the news, earlier in the week when shippers Maersk and Hamburg-Sud announced that they are withdrawing container pickups from the Port of Timaru, slicing $6 million off that Port’s annual revenue and resulting in the loss of about 50 port jobs. The service will be streamlined and will now operate from Napier to Otago. The new arrangements will come into place in mid-September, just prior to the start of the new meat export season.

Also in Timaru, in what’s said to be a “world first for venison scanning”, meat scanning technology already used for lamb and cattle is to be introduced for deer at Alliance Group’s new venison processing chain at Timaru’s Smithfield site later in the season.

Meanwhile, deer farmers are eyeing Europe, as exporters organise their chilled venison contracts for the European game season, according to a Fairfax news report. Venison prices are said to have “so far maintained a level of stability reflected in the meat schedule prices deer producers were being paid.”

New Zealand beef was amongst a ‘greymarket’ consignment of smuggled goods on a container ship seized by Chinese authorities after attempts were made to smuggle it into China. The frozen meat cargo worth US$10 million also contained other beef, chicken wings and pork from the US, Brazil and Australia. One Australian industry commentator has estimated the smuggled meat trade from Hong Kong, Schenzen and Vietnam accounts for 500,000 tonnes each year. Lower tariff rates for New Zealand meat, as a result of the free trade deal with China will make this trade less profitable for smugglers. However, concerns are for food safety of the smuggled perishable products as the cold chain may not be managed efficiently.

Click on any of the links to read more about each item.

Second Red Meat Sector Conference

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Closing speaker for conference: clinical psychologist Nigel Latta.

High quality speakers and ample opportunities to network are on offer to delegates from the meat industry, farming and their service sectors at this year’s Red Meat Sector Conference.

We’ve been given a sneak preview of the content of the meat industry’s second annual conference, which will take place at the Rydges Lakeland Resort in Queenstown. The event is co-hosted once again by the Meat Industry Association (MIA) and Beef + Lamb New Zealand Ltd (B+LNZ).

Keynote speakers include clinical psychologist, author and self-confessed ‘wearer of socks’ Nigel Latta and Swazi Apparel’s Davey Hughes. They are joined by a dozen or so other presenters to focus once more on the core themes identified in the Red Meat Sector Strategy launched in May 2011.

After scene-setting presentations from Colin James of the Hugo Group and Richard Brown of European market research group GIRA, three sessions will cover the themes of the Sector Strategy.

In session one: meeting the needs of consumers will be the focus of Arron Hoyle of McDonald’s and Murray Johnston of Progressive Enterprises, while John Carroll of AVANZA avocado growers will look at managing market supply.

Australian and US perspectives regarding procurement will be explored in the second session, while best practices will be explored by B+LNZ Economic Service’s Rob Davison, Mark Paine of Dairy NZ and farming leader Doug Avery.

The conference will close with a session on behavioural change from Nigel Latta.

Two major social events are planned during the conference; a Welcome Cocktail Function, supported by Hamburg Sud, to be held on the evening of Sunday 15 July; and a Gala Dinner, sponsored by Maersk Line, to be held on the evening of Monday 16 July at which Davey Hughes of Swazi Apparel will speak.

For the first time, ANZ bank has taken the premier sponsorship role.

Don’t miss out: register online and find more information at www.mia.co.nz.

RED MEAT SECTOR CONFERENCE: THANKS TO SPONSORS

Premier: ANZ

Gala Dinner: Maersk Line

Welcome Cocktail Function: Hamburg Sud NZ Ltd.

Pre-networking drinks: Milmeq

Morning and afternoon teas: Triton Commercial Systems

Gold: AgResearch, Bell Gully, Ecolab, Milmeq and System Controls Ltd.

Silver: Industrial Research Ltd, NAIT Ltd, Port of Tauranga, SATO NZ Ltd and Sealed Air NZ.

Delegate bags: Bemis Flexible Packaging Australasia Ltd.

Other: Marfret Compagnie Maritime.

Published in Food NZ magazine (June/July 2012).

 

Export meat price fall confirmed, but temporary

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A fall in merchandise export prices for meat products has been confirmed by Statistics New Zealand in its latest figures comparing the March 2012 quarter against December 2011. However, this is expected by some to be temporary and export prices should improve later this year.

Overall, merchandise export prices fell by 3.8 percent in the same quarter, reflecting a 5.5 percent appreciation of the New Zealand dollar (according to the Reserve Bank’s trade weighted average). Amongst the falls for major commodity groups, prices for meat products (especially lamb), which accounted for 12 percent of exports, were down by 3.6 percent in the quarter, while other price falls were recorded for dairy (-5.6 percent) and forestry (-4.2 percent) products.

New Zealand’s merchandise terms of trade (the ratio of export prices to import prices) fell by 2.3 percent in the March 2012 quarter when compared with December 2011 – the third consecutive quarterly decrease since the terms of trade peaked in the June 2011 quarter, Statistics NZ says.

Looking at the wider market implications, Westpac’s senior economist Anne Boniface says the  data broadly confirms Westpac’s understanding of the NZ economy and on its own won’t change the outlook for the Reserve Bank. “Nonetheless, export prospects are certainly dimming this year. But while acknowledging the near–term weakness in commodity prices and its impact on the NZ economy, we must keep the recent moves in perspective – the terms of trade remains 10 percent above its average levels of the last decade,” she says, adding that current weakness is expected to be cyclical rather than structural. “By the final quarter of this year, stimulatory policies by authorities in China should be starting to gain traction, boosting growth and demand for commodities. Consequently, we expect to see commodity prices stabilise and start to improve.”

Boniface remains firmly optimistic about prospects for New Zealand export prices over a longer horizon, she says.

Great pastoral conditions along with continuing good prices

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Photo: Courtesy B+LNZ

Beef + Lamb NZ’s mid-season update for the sheep and beef sector reports that export receipts estimated at $6.6 billion hold at last year’s level. Last year, export receipts for the sector were up 15 percent.

Expectations are for a small lift in export volumes and continued good prices relative to recent years. This will be moderated by the strength of the New Zealand dollar, particularly against the Euro and British pound.

The report contained few surprises for B+LNZ Economic Service director Rob Davison, who says it’s rare for such good pastoral conditions and international prices  to align. Lamb prices are expected to average at $115 a head, slightly down on 2010-2011’s high. Offshore prices are expected to remain at good levels, though the stronger NZ dollar against the pound softens the price received here. The recent strengthening of the NZ dollar against its US counterpart is also a concern, Davison says.

Global mutton supplies remain tight, while beef exports are expected to lift in the 2011-2012 season which ends in June.