Meat export revenue down in June quarter, says MPI

Lamb leads a drop in export meat revenue for the June 2012 quarter, according to the latest figures from the Ministry for Primary Industries (MPI).

The Ministry’s Primary Industries: Production and Trade report for the June 2012 quarter, says that this is mostly because of lower export prices from weaker international demand and a build up in meat stocks in New Zealand, particularly for lamb, which fell by 25.6 percent against the same period a year earlier. Venison also  recorded a fall of 15.1 percent for the quarter and beef and veal -2.9 percent. In total,  meat export revenue for the quarter, was down 14.4 percent to $1.6 billion. Lamb production, however, was up 5.9 percent in the year ended June 2012, with slaughter numbers up 2.4 percent and carcase weights up 2.5 percent on the previous year, says MPI.

“This reflects increased numbers of lambs born in late winter and early spring 2011 and a record average carcase weight of 18.48kg.”

Beef production fell by 1.8 percent in the quarter due to lower slaughter numbers, particularly for cows and heifers, reflecting lower beef cattle inventories at the end of the 2011 season and retentions for an expanding national dairy milking herd.

Offals seem to have had a healthy year with quarterly revenue increasing for ‘other meat’ of 8.5 percent and a year-on-year increase of 10.7 percent, to end June 2012.

Another significant highlight is that China became the number one market for frozen bone-in lamb cuts in the six months to end June, with the European Union now taking second spot, according to MPI. “However, average export prices of lamb sold to China re about half that received in the EU,” the report concedes.

All but one industry grouping experienced a decline in export revenues, the report says. Overall, primary sector revenue for the June quarter was down 5.8 percent, compared with the final quarter in 2011, to $8.8 million. However,  during the year ending June 2012 there was a production-driven revenue increase of 1.3 percent to just over $32 billion, due to favourable climatic conditions, MPI says.

Climate conditions for pasture growth for the year ended June 2012 were the best since 2002, MPI notes, with 51.4 days of soil moisture deficit compared to the 20-year average of 61.6  – resulting in record carcase weights for lambs, heifers and cows and record milk solids per cow.

The full report Primary Industries: Production and Trade is available for download at the MPI website (search under Publications).

 

 

 

 

Venison industry planning productivity improvement

Moves are afoot to improve the productivity of New Zealand’s venison herd, which could result in an average carcase weight of 64 kg in ten years time, a better quality and improved supply of venison for exporters, along with improved earnings for producers.

A group of 40 participants have had input to the Productivity Improvement Programme report which was endorsed by the Deer Industry New Zealand (DINZ) board in mid-July, after having received support at the 2012 Deer Industry and CERVETEC conferences and endorsed by the New Zealand Deer Farmers’ Association.

Concluding that the venison industry’s productivity mantra ‘More deer, heavier, earlier and betterremains valid, the Productivity Leadership Group, lead by Wanaka veterinarian and farmer Dr Mandy Bell, realised that productivity improvements to date had taken place in the market. They determined that money will be better spent now achieving practice change in the deer industry, rather than generating new knowledge. The report has emphasised the importance of implementing new knowledge and best practice on farm and says that the goal of productivity improvement is to produce more profitably, rather than simply increase volume.

Critical areas of the programme of work are: to better manage deer to maintain and achieve optimal health; to look at improvements in feeding; and in the areas of genetics and physiology.

The PLG has calculated achievable targets and an understanding of ‘The Prize’, based on the successful implementation and reasonable levels and rates of adoption of the programme of work among deer industry participants. Targets include an additional nine kg to bring the average carcase weight to 64kg in 10 years time, an increase of 2.8 percent per year for kg output per hind and an additional $1.48 per kg output (earnings before interest and taxes) by 2022.

The draft programme of work is to be discussed with participants in the Productivity Improvement Programme. DINZ is currently planning the implementation of the work and how best to fund it.

You can read more about it in Deer Industry News (issue 55, pages four to five). Click on the photograph above for a pdf of the magazine.