New Zealand: Meat exporters face tough times

In its latest newsletter to supplier/shareholders, chief executive Willie Wiese says, like all red meat exporters, Alliance’s livestock pricing reflects what prices it can capture in global markets.

“Weaker market conditions are being driven by persistently high inflation levels reducing consumers’ discretionary spending,” he told suppliers. “This has led to a decline in people eating out in restaurants and some shoppers trading down from higher priced red meat proteins – such as lamb – in their weekly grocery shops.”

Wiese added there were also consistently high levels of inventory across all proteins in various markets, which is driving down demand and the price for fresh product. However, he says Alliance’s inventory is on a par with levels in previous years.

“The Chinese economy is recovering slower than anticipated following Covid-19 and consumers there are more cautious with their spending,” Wiese explains. “Recent information out of China suggests the current slowdown in demand will continue through the short to medium term, which has led to us diversifying some products into other markets.”