43% of all dairy and meat is exported to one single nation - China.
Is New Zealand meat on par with local expectations? China thinks so, it’s also driving up the costs for local families.
New Zealand, known for its abundant agriculture, has been greatly affected by COVID-19. The outbreak has put a significant impact on the country's food export industry, particularly in the meat and dairy sector.
New Zealand is a leading exporter of dairy and meat products worldwide and holds a critical position in several global food markets. China is a significant export market for New Zealand's dairy and meat industry, as it is the second-largest dairy importer and the largest importer of beef and lamb from the country. However, in recent years, the rising demand for New Zealand's premium food products has led to high food costs, making it challenging for Chinese consumers to afford them. This blog post explores the challenges faced by New Zealand's dairy and meat exporters in China and the impact of high food costs on Chinese consumers.
Chinese has to import 40% of their food, dropping their food self sufficiency ratio from the year 2000 it was 93.6% to 65.8% in 2020. Their economy is still collapsing in 2023, they are the largest importer of food in the world.
New Zealand is a domestic farming nation, they are distributing their food to the highest payer, which is China, in 2023/24.
The high cost of food in New Zealand has impacts on different demographics, including high and low-income families, farmers, and the hospitality industry. Most families in New Zealand (wider New Zealand - Aotearoa) often struggle to afford healthy food options, which can lead to health issues down the line. Farmers also face challenges as they bear the brunt of rising production costs, including higher fuel, feed, and equipment costs. In contrast, the hospitality industry is also affected by the high food costs as they have to increase their menu prices to cover the rising restaurant costs, which can lead to a decrease in customer traffic.
In summary, COVID-19 has caused significant damage to New Zealand's dairy and meat exports to China and the overall food industry. The pandemic has limited the production of meat and dairy products, disrupted the supply chain, and affected the demand and pricing of raw materials. As the country navigates to overcome these hurdles, it is essential to strategize and embrace innovation to recover and rebuild the industry.
Overall, it is important for New Zealand to strike a balance between its reliance on export markets like China and its commitment to ensuring domestic food security. By promoting a diversified, sustainable, and innovative approach to agriculture, New Zealand can meet the challenges of rising food costs while also protecting the long-term health of its economy and its people.
