According to a report released by Beef + Lamb New Zealand, the outlook for red meat exports from New Zealand remains positive and is based on a strong demand and restricted supply, with expectations of higher prices in export markets.
For Andrew Burtt, chief economist at B + LNZ, China remains a red meat export driver in performance for 2021–22. “Demand from China and the US supported solid export returns in the latter part of the 2020–21 season, as economic recovery in both countries has been quick and has fueled consumer confidence. China’s demand for meat protein continues to be fueled by pork shortages and growing consumer incomes and urbanization.”
Overall, the global economic and food sector recovery, with a tighter global beef supply, support the positive outlook for the New Zealand market.
Nevertheless, the industry’s challenge still remains the disruptions to supply chains, increased freight costs that are related to the global COVID-19 pandemic, the spread of the Delta variant and the impact on the global economy recovery.