New Zealand Red Meat Exports Surge $1.2 Billion Amid Livestock Supply Challenges

New Zealand’s red meat exports have surged by $1.2 billion this year, driven by strong livestock prices and tighter supplies, despite growing concerns over the sustainability of the country’s livestock numbers.

Over 300 red meat producers, processors, and marketers convened in Ōtautahi-Christchurch at the Red Meat Sector Conference on Tuesday, where industry leaders expressed deep concern about the long-term viability of the sector. While global demand for New Zealand meat remains strong, the sector is grappling with a growing mismatch between processing capacity and available livestock.

Industry group Beef + Lamb New Zealand chairwoman Kate Acland highlighted the issue, stating, We have more plants and more processing lines than we have livestock to sustain them efficiently, and it risks getting worse. Acland pointed to carbon farming initiatives under the Emissions Trading Scheme as a major factor behind the decline in livestock numbers, particularly in sheep and deer populations.

According to the latest data from Stats NZ, sheep numbers dropped by 3% in 2024 to 23.6 million, while deer numbers fell by 4% between 2023 and 2024 to 709,000. Despite these declines, beef numbers have held relatively stable, rising 1% in the last year to 3.7 million cattle.

Acland stressed the need for greater collaboration among industry players to optimize capacity and secure the sector’s future. If we want a future-fit industry, we need to be bold about optimising capacity and about how we collaborate, she said.

The conference also coincided with ongoing challenges in the sector, including the impending closure of Alliance Group’s Smithfield meat plant in Timaru, which will result in the loss of 600 jobs. This decision was made amid declining livestock numbers, particularly breeding ewes.

Agriculture Minister Todd McClay addressed the conference, emphasizing the government’s commitment to reducing on-farm regulations and costs to support the primary sector. I reckon it’s a great time to be a farmer in New Zealand at the moment, McClay said, highlighting the country’s ability to provide high-quality, safe food with a strong environmental story.

The government has also launched the $8 million Taste Pure Nature campaign to strengthen New Zealand’s position in key markets like China and ensure better returns for farmers and processors.

While the sector faces significant challenges, the strong export performance highlights the value of New Zealand’s red meat products on the global stage. However, industry leaders warn that without addressing the livestock supply issue, the country risks missing out on potential billions in export revenue.