New Zealand beef exports to Canada hit the comeback trail
Exports of New Zealand beef to Canada are expected to go on increasing in line with reducing stocks from South America, due to that continent’s problems with foot and mouth disease.
New Zealand customs figures show that during 2000, the country shipped 8,664 tonnes out of an allowable quota of 29,600 tonnes to Canada. So far this year it has sent 15,977 tonnes, largely on the back of South America’s ongoing problems with foot and mouth disease and the current low value of the New Zealand dollar.
Between January 1 and May 11, a further 7,231 tonnes of New Zealand beef entered Canada under a complementary permit scheme, bringing a return of the halcyon days of the late 1990s, before the South Americans arrived in force.
As well as being a positive trend in its own right, the rise in Canadian imports has also boosted the price of New Zealand beef on world markets, relieving the pressure to sell into the US. US customs figures show that by June 11, New Zealand had shipped 104,310 tonnes to the US, representing 48.9 per cent of the allowable quota. In the same period last year it had shipped 115,762 tonnes, or 54.2 per cent. Nevertheless, it is understood that New Zealand will seek to take advantage of its total quota of 213,400 tonnes by the year’s end.
How long New Zealand is able to keep up this level of business is obviously largely dependent on events in South America, and the effectiveness of individual countries in their efforts to tackle foot and mouth disease. At present, North America still allows imports from areas unaffected by the disease. It also allows areas that have been affected by the disease to be brought back on line relatively quickly, once outbreaks have been eradicated.
In the meantime, the situation is ensuring high returns for New Zealand's farmers and exporters, and leading to record auction prices for stock.
