The Country 08/07/25: Sirma Karapeeva talks to Jamie Mackay

The chief executive of the Meat Industry Association looks back on another strong month for NZ red meat exports, where prices are up, volumes are down, the farmers are making money, but the meat processors aren't.

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Episode Transcript

Speaker 1 (00:00):
Here is a good news story and it continues to
be a good news story, not only for farmers but
also for the New Zealand economy. May was another strong
month for the New Zealand red meat industry, particularly exports.
Even though volumes are down, prices were up and this
is a pattern that's repeating itself over the past few months.
To tell us more, chief executive of the Meat Industry

(00:21):
Association Sirmacarapeaver, and the farmers are making good money at
the moment, in some cases record money. The meat processes
aren't perhaps faring as well.

Speaker 2 (00:33):
Yeah, no, that is indeed the case, and we are
hearing from red meat processes that margins remain tight. You know,
there are certainly issues in that part of the sector.
But you know, on the flip side, farmers are receiving
the line's share of returns, which is great news for
them and obviously also great news for oral communities because

(00:57):
the money flows through and then it goes into the
wider New Zealand economy as well.

Speaker 1 (01:03):
So overall expert sports exports for the month of May
one point one point five billion, a six point a
six percent increase year on year. US no surprise is
now our largest red meat market. But I think the
good news story buried in hair surma is that exports

(01:23):
to China continue to recover.

Speaker 2 (01:25):
Yeah. Absolutely, We're starting to see the China economy starting
to rebound and recover, which is great. You know, it
has been struggling in the last wee while and we're
seeing now that it's up six percent to two hundred
and forty million. And you know, we were up in China,

(01:47):
we're the Prime Minister. Not too long ago. There was
a lot of excitement about the fact that we were
in the market, that we were relaunching our country Origin
brand and we were looking to offer Chinese consumers a
unique red meat compared to you know, the imports that

(02:07):
are coming from other sources in the world. So I
think there is a good news story there and I'm
very positive that it will continue.

Speaker 1 (02:16):
And another good news story is the fact, and this
obviously has a bit to do with the free trade
agreements as well and what's happening with Trump and the
tariffs and what come back to that one, but the
UK rose forty four percent in terms of the exports
we're sending there red meat exports, and I know we're
doing better or well in the EU at the moment.
So Europe's becoming a more important market for us, just

(02:39):
like the good old days when they used to take everything.

Speaker 2 (02:42):
Well, yes, I suppose so, although you know, they are
still looking for those high value products, which we are
very fortunate that we can provide for them. They're looking
for products with credentials and attributes. Again we are well
placed to provide that. But it is a good news story.
And I think you now that the actas certainly seem

(03:05):
to be helping unlock those markets a little bit more
for us. So long long may that continue because we
do need that diversification and the optionality more so to
be able to place product on high value markets so
we can extract that economic benefit for New Zealand.

Speaker 1 (03:26):
Let's just finish with Trump and his tariffs. So no
one seems to know where is going on these at
the moment. It must be a nightmare for you guys
in the industry. But as it stands at the moment,
I certainly my understanding is the Americans are seemingly happily
paying the ten percent tariffs themselves just to get the beef. Yeah.

Speaker 2 (03:45):
Look, I mean I think in the red meat industry.
There's probably a mix of approaches that companies have taken.
Some are looking to pass that on through to their
customers and the UIs and their customers are then passing
it onto the construy humors. Others are looking at other
other options, potentially absorbing some of it themselves. So it

(04:07):
is a mixed bag. But the fact is the US
remains our strongest red meat market at the moment, and
demand does look to be solid, partly because they are
going through their own heard rebuilding phase and so supplies
as tight in that market and they're looking to backfill
that with more imports. But yes, who knows, who knows

(04:31):
what happens. I think tomorrow when we hear from President
Trump what he has decided to do with his initial
set of tariffs, whether they continue, whether there's some negotiation,
or what may the future look like. Anyway, we are
prepared and we will just roll with the punches as

(04:51):
it comes our way.

Speaker 1 (04:52):
We will wait with baited breath to see what the
Trumpster does. Isa Macara Feaver from the Meat Industry Association
always good to catch up on the entree.

Speaker 2 (05:01):
Absolutely, thanks very much, Jamie