NZ beef production and exports decline in 2015-16

At the conclusion of the 2015-16 season (October to September), New Zealand (NZ) beef production finished 4% lower year-on-year – at just over 633,000 tonnes cwt (Statistics NZ). This was underpinned by a 2% year-on-year decline in NZ adult cattle slaughter, with close to 2.62 million head processed for the October to September period.

For the 2015-16 season, total NZ beef exports decreased 2% on the same period the previous year, at just shy of 423,800 tonnes swt – largely attributed to increasing US beef production resulting in fewer shipments year-on-year.

To NZ’s major export destinations, compared to the previous year, volumes to:

• the US declined 12%, to 202,074 tonnes swt
• China increased 24%, to 76,644 tonnes swt
• South East Asia increased 5%, to 25,799 tonnes swt
• Taiwan increased 21%, to 26,426 tonnes swt
• Canada increased 12%, to 21,207 tonnes swt

As highlighted in the recently released New Season Outlook by Beef + Lamb NZ, further growth in China and other Northern Asian regions is anticipated in the 2016-17 season. Competition for market share is forecast to remain strong in the new season, as global beef supplies are expected to increase modestly, due to an expanding US cattle herd and improving market access for Brazil.