Sharechat Logo

NZ lamb exports to UK drop to record low in August

Monday 18th September 2017

Text too small?

New Zealand lamb exporters are eschewing the weak UK market in favour of other more lucrative trading destinations, pushing the volume of meat sent to what was once the nation's biggest export market to a record low last month, AgriHQ says.

"The UK lamb market is slowly becoming less pivotal to NZ exporters," AgriHQ analyst Reece Brick said in his monthly Sheep & Beef report. "A steady decline in lamb consumption combined with a loss of economic confidence following Brexit has resulted in a challenging market environment. Exporters have largely chosen to divert their product to higher-paying markets, and this will be a strategy that increases over time."

Just 1,274 tonnes of frozen lamb made its way to the UK from New Zealand in August, the lowest monthly volume since AgriHQ records began in December 2006. Across the months of July and August NZ frozen lamb exports to the UK were down 32 percent on a year ago and were 38 percent behind the five-year average, AgriHQ said.

Similarly, NZ lamb exports to continental Europe fell 11 percent to 2,946 tonnes in August, the lowest level for the month since AgriHQ records began in 2006, and 22 percent behind the five-year average.

New Zealand exporters have focused on the chilled trade to the UK, which is still achieving very solid prices, Brick said. Prices for chilled lamb for the Christmas trade is expected to be ahead of last year as customers seek to secure product following scarcity of supply last year, he said.

Brick said prices in the UK and continental Europe are likely to adjust as supply from New Zealand increases and production reverts to frozen, but will still remain at historically high levels. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Asians, men more confident in financial markets than Pacific Islanders, women and poor people
June trade surplus $365M, higher than expected
Govt opts for sweeping review of 'underperforming' RMA
AFT gains Australian registration for intravenous Maxigesic
24th July 2019 Morning Report
Should Fletcher Building persist with Australia?
NZD weaker as greenback gains on news US-China trade talks to recommence
MARKET CLOSE: NZ shares extend gain as Mainfreight, A2 hit new highs
StretchSense directors appoint administrators
NZ dollar falls on news RBNZ is looking at "unconventional" policy

IRG See IRG research reports