Higher NZ sheepmeat exports

Marts: New Zealand exported 4% more sheepmeat to the EU during the first 10 months of 2006 compared to the same period in 2005 increasing sales to 172,000 tonnes.

The emphasis was on fresh and chilled sheepmeat which increased sharply, more than offsetting the decline in demand for frozen product during the year.

Sales of fresh/chilled product increased to 37,500 tonnes which was up 27%.

Exports of frozen produce declined by 1% with sales falling to 134,300 tonnes.

Bord Bia reports that more than 40% of the exports for the period were to the British market, the largest EU importer of New Zealand sheepmeat. Britain imported 74,000 tonnes. The second largest importer was Germany taking 30,000 tonnes.

The quote for exports into the EU by New Zealand stood at 227,854 tonnes for 2006, which it is expected it has filled and the indications are that it will also fill the quota in 2007.

The poor grass-growing season in New Zealand was reflected in a decrease in the average carcass weight and contributed to a decline of 1% in production in New Zealand for the year.

Partly due to a weaker exchange rate, producer received about 10% less for lambs during 2006 at an average equivalent to € 1.64/kg. Production is expected to recover in 2007.

Meantime the IFA is predicting that slaughter at the Irish plants will be down 250,000 head this year — equivalent to a drop of 8% — which should leave supplies for the year tight and underpin prices to producers.

Henry Burns, chairman IFA Sheep Committee said that with the EU at 80% self sufficiency and French lamb prices forecast to increase by 3%, there is a real opportunity for the Irish factories to close the major price gap with France.

Total slaughter at the factories was down 4% for 2006, while the average price was 2% higher for the year at 345c/kg.