End Market Analysis of Ethiopian Livestock and ... - USAID Microlinks

5. NEW ZEALAND
The Middle East is a relatively small market for New Zealand, accounting for 1 percent of its global beef exports and
9 percent of its global sheep meat exports.
BEEF
New Zealand exported only 4,205 MT of beef to the Middle East in 2008, 82 percent of which was chilled boneless
beef. Exports of chilled boneless beef to the Middle East grew by 59 percent over the 2004-2008 period. The UAE is
the largest market for New Zealand beef, with 1,601 MT of chilled beef in 2008, followed by Qatar and Kuwait.
Together with Australian beef, New Zealand beef serves the very high end of the Middle East market. In 2008, the
average price of chilled beef for the Middle East market was $6,328, while the average price of frozen beef was $5,658.
SHEEP MEAT
New Zealand is the world’s leading exporter of mutton and lamb meat, ahead of Australia in second place and far
ahead of China and India in third and fourth places respectively. 96
In 2008, New Zealand exported 38,163 MT of frozen sheep meat and 1,278 MT of chilled sheep meat to the Middle
East. Saudi Arabia was the major customer, accounting for two-thirds of this volume. Frozen sheep meat from New
Zealand is price competitive in Middle East markets, with bone-in cuts (which account for the majority of exports)
selling for $2,512/MT and boneless cuts selling for $4,083/MT. Chilled boneless sheep meat sells for very high prices
($11,632/MT), but accounts for a only a minute fraction of exports to the Middle East (43 MT).
6. ETHIOPIA
Ethiopia has the comparative advantage of geographical proximity, but the country’s high air cargo costs and the high
rate of carcass rejection upon arrival in the Gulf States decreases its cost competitiveness, while the low quality of
meat (dark cutting due to poor animal handling, etc.) lowers Ethiopia’s quality competitiveness as well.
According to UNCOMTRADE, Ethiopia’s goat meat exports were just under 5,000 MT in 2009, having fluctuated
between 3,000 MT and 6,000 MT in recent years.
The current Ethiopian birr exchange rate 13.235 birr = $197 (March 10, 2010) is favorable to exports.
BEEF
Ethiopia’s beef exports are small—just 291 MT exported in 2009—but this is an increase over previous years.
SHEEP AND GOAT MEAT
Goat meat accounts for the majority of meat exported from Ethiopia. The main markets are Dubai (nearly 4,000 MT
in 2008 and 2009) and Saudi Arabia (nearly 2,000 MT in 2008 and 1,000 MT in 2009). Ethiopian meat is mostly sold
at the low end of the market, aimed at low-income expatriates (household workers). However, importers complain of
poor quality, unreliable supply and inability to supply significant quantities. 98 Very small volumes of goat meat were
also exported to Congo (2.5 MT in 2008) and Yemen (35 MT in 2007, none in 2008).
In 2008, Ethiopia also exported small volumes of chilled lamb carcasses: 1,356 MT to Saudi Arabia and 605 MT to the
UAE.
96 FAO 2004
97 March 10, 2010 (http://www.oanda.com/currency/converter/)
98 Belachew Hurissa SPS-LMM report 2006
END MARKET ANALYSIS OF ETHIOPIAN LIVESTOCK AND MEAT 37