New Zealand-Lamb markets changing.

NEW ZEALAND-

Redistribution in NZ lamb exports

New Zealand lamb exports totalled 36,187 tonnes swt during February, similar to last February (Meat & Wool New Zealand). Despite this, volumes to various markets changed drastically in response to both tighter supplies and tapering demand as a result of the continued global economic downturn.

Lamb production in January declined 16% year-on-year, while slaughter fell 19% to 2.89 million head (average carcase weights rose 4% over the same period).

With supplies lower, exporters targeted what are traditionally higher value markets for NZ lamb – shipments to the EU rose 10% year-on-year to 21,790 tonnes swt, with strong demand for chilled legs (Country-Wide Publications). Demand was also very strong in both China and Japan, where NZ exports of lamb rose 32% and 144% year-on-year to 3,269 tonnes and 914 tonnes swt, respectively.

Volumes declined to Mexico during February (as a labelling issue made it difficult to place shoulder cuts), falling 89% year-on-year to 119 tonnes swt, while shipments to the US fell 12% to 1,735 tonnes – a victim of greatly reduced restaurant patronage.

In the Middle East, demand slumped in tandem with oil prices (Agrifax New Zealand). Volumes declined in February by 23% year-on-year to 3,370 tonnes and 19% for the fiscal year so far (October 2008 to February 2009); however, demand is expected to improve over the coming months.