Meat exporters say 2024 has been a tough year for the industry — but positive signs are emerging.
A joint report from Beef & Lamb and the Meat Industry Association says global markets remain challenging, but there are green shoots which may result in prices firming in 2025.
“Recent reductions in interest rates have also provided some relief for farmers,” the Red Meat Report said.
It said export prices had been weak, though improvements were expected.
“Despite the weaker prices for our sheep meat particularly, caused by China’s economic headwinds and our products experiencing increased competition, we could see prices firm this coming year due to our significantly reduced supply,” the report said.
“The North American market has been strong and this has helped support ongoing strong cattle prices.”
The UK free-trade agreement had also provided opportunities for meat exporters, as well as recent trade agreements with the UAE and the Gulf Co-operation Council.
The sector was also monitoring developments in the United States following Donald Trump’s campaign comments about increasing trade tariffs.
“We support the New Zealand government’s ‘wait and see’ approach.”
The report said the industry had been working constructively with the government on a number of policy issues, including freshwater rules, biodiversity and resource management.
“We also welcome the government’s recent announcement of measures to address the amount of productive sheep and beef farmland being lost to carbon farming.”
The government announced rules to limit whole-farm-to-forestry conversions entering the Emissions Trading Scheme, including a moratorium on exotic forestry registrations for land-use classification (LUC) 1-5 actively farmed land and an annual registration cap of 15,000 hectares for exotic forestry registrations on LUC 6 farmland.
B+LNZ had been calling for action on this issue since 2019.
Since 2017, 261,733 hectares of sheep and beef farmland have been sold for afforestation, with over 51,000 hectares identified for planting since the start of 2023. That figure surpassed the Climate Change Commission’s recommended annual cap of 25,000 hectares of exotic afforestation to meet emissions reduction targets.
B+LNZ recently commissioned research undertaken by Orme & Associates to assess the ongoing scale of land-use change. They found that since the last report sales for a further 51,291 hectares of sheep and beef farms going into forestry had been finalised. — RNZ/APL
