Opinion

New Zealand Beef Exports in H1 2022 Climb 27% YoY Driven by Demand in East Asia

Fresh Whole Beef
Frozen Bone-In Beef
Frozen Boneless Beef
New Zealand
Published Jul 25, 2022
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New Zealand exports of beef (fresh, chilled, and frozen) totaled NZD 2.66 billion in H1 2022, up by 27% YoY, driven by considerable increases in China, South Korea, and Japan.

New Zealand exports of beef (fresh, chilled, and frozen) totaled NZD 2.66 billion in H1 2022, up by 27% YoY, driven by considerable increases in China, South Korea, and Japan.

Exports to China totaled NZD 1.08 billion, up by 40% YoY. Exports to China now represent 41% of the total, compared to 37% in the same period in 2021. Meanwhile, exports to South Korea totaled NZD 133 million, up by 111% YoY. South Korea increased its share in New Zealand beef exports from 3% in H1 2021 to 5% in H1 2022. Exports to Japan totaled NZD 203 million, up by 35% YoY. Japan's share increased from 7% to 8%. Exports to the US totaled NZD 806 million, up by 8% YoY. Despite the increase, the US share in New Zealand beef exports dropped from 36% in H1 2021 to 30% in H1 2022.


Source: Tridge and New Zealand Statistics

It's worth noting that a softer New Zealand dollar has helped to increase exports. The NZD/USD exchange rate averaged $0.663 in H1 2022, compared to $0.717 in H1 2021, reflecting a decline of 7.5% YoY. The rate in July is averaging $0.618, 11% down YoY, which is bullish for exports ahead.

Exports have risen above previous expectations. Earlier predictions suggested a growth of 12% YoY in export value for the period of October 2021 to September 2022. However, the growth rate in January-June 2022 has more than doubled.

Behind the export value increase are strong demand from the aforementioned countries in Asia and the US, much higher prices compared to the previous year, as well as a tighter beef supply, globally.

Locally, beef prices have been stable in the recent weeks. According to Tridge representative in New Zealand, Breda van Niekerk, steer prices during the week starting July 18th were quoted at NZD 6.10/kg. Exporters are expecting prices to remain high until spring/early summer, which would correspond to end-year 2022.

Barring further Covid-related lockdowns down the road, New Zealand beef exports are expected to remain high as the year advances.

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