Increasing milk and red meat export returns are helping New Zealand's economic fortunes
It looks as though New Zealand could once-again be living off the sheep’s (and cattle beasts’) back – and not just relying in the dairy sector – to help get our economy back in the black
While most reports on the agri-sector concentrate on the high-performing dairy industry; latest figures show the country’s red meat producers are also doing their bit. According to the latest export figures; earnings for New Zealand sheep and beef totalled $5.8 billion last year – an increase of 9 per cent.
This increase in red meat export earnings occurred despite Beef + Lamb New Zealand’s annual stock survey showing sheep numbers down 2.1 per cent to 31.9 million. Meanwhile, the beef herd has stayed almost static at 3.9 million in the year to June 30.
Economist Rob Davison says the decrease in sheep numbers flows on from a tough spring in 2010 that resulted in a low supply of lambs this year. “This in turn has cut back the supply of lambs that can be held over as future breeding flock replacements.”
Davison says tight global supplies of lamb and sheep meat has seen world market prices lift significantly.
World market lamb prices were also up significantly on the previous year but the lamb supply from New Zealand remained constrained from the previous spring’s poor lamb crop.
In the year ended June 30, lamb generated $2.7 billion, which is 3.4 per cent ahead of last year but from reduced export volumes.
“The decline in the ewe flock has ensured mutton exports receipts were the standout story – up 35 per cent to $580m with the volume shipped up 15 per cent, Davison says.
Beef export receipts at $2.5b were up 14 per cent despite the volume shipped decreasing three per cent.
Meantime, early expectations are for this spring’s lamb crop to be up 1.4m on last year’s poor result to 26.2m lambs – yielding 20.1m lambs for export.
This is more proof that the red meat and white gold of New Zealand’s agricultural sector is providing the much-needed black ink for the country’s economy and the folly of claims made by politicians and others a few years back that our agri-sector was a sunset industry.