3 key points for New Zealand production and exports

Historically, New Zealand has been an important trading partner in beef, sheep, pork, dairy products, wheat, and barley. In all these sectors, production significantly exceeds domestic consumption and is mainly exported to all parts of the world.

About 95% of its production finds export outlets. And nearly a third (32%) of these exports go to China, As per a point made by AHDB (Agriculture and Horticulture Development Council). Other major trading partners also include Australia and several Asian markets including Malaysia, Indonesia and Japan.

they Whole Milk Powders That holds the top of the basket in value. They represent more than half (about 54%) of the total value of New Zealand’s dairy exports. After China, the United Arab Emirates and other Asian markets remain the main customers. Exports of butter and cheese are also important, totaling £1.7 billion and £1.0 billion respectively annually (2018-2020 average).

New Zealand One of the top 10 exporters in the world. In recent decades, the share of its exports has increased to reach More than 90% of the beef produced. There are two reasons for this: New Zealand’s export-oriented red meat sector is driven by consumer demand, and the steady increase in beef production due to the expansion of the dairy herd. About 70% of beef production in New Zealand now comes from the dairy herd.

If the United States has historically been the main destination for New Zealand beef, China has become crucial for the country. In 2019, New Zealand’s exports of fresh/frozen beef to China exceeded those to the United States for the first time, but declined in 2020. New Zealand sells the largest proportion of its products to these two markets, which account for about 72% of total exports in 2020.

The situation is different because production has been declining since the 1980s, notes AHDB. Production at that time was more than 600,000 tons, while it is currently around 450,000 tons (2018-2020 average). Consumption in New Zealand has also fallen sharply. According to OECD data, sheep meat consumption in New Zealand has fallen from around 30kg per capita in 1990 to just over 3kg per capita in 2020.

Three possible reasons for this disintegration :