From Tokyo, Japan and New Plymouth, New Zealand – this is Down to Business English. With your hosts Skip Montreux and Samantha Vega. I cannot believe it's only been a couple of weeks since we last spoke, Samantha. So much has happened in the business world since then. Tell me about it, Skip. A full blown trade war has erupted between the US and … well the world. I know it has been crazy, hasn’t it. You and I last spoke at the end of March.
Then on April 2nd, Donald Trump held what he called Liberation Day and slapped trade tariffs on nearly every major US trading partner. Which led to stock market meltdowns everywhere. How much value was wiped out? I think I read $8 trillion. Yeah, I don’t know. That might have just been the US. Anyway, it was a massive loss. But now Trump has put a 90-day pause on most of the tariffs, so markets are starting to claw their way back. A 90-day pause for everyone except China that is.
He has what, a 145% tariff on Chinese imports into the US and China has retaliated with a 125% tariff of their own on US imports? Well, something like that. The global economy is not out of the woods yet. Far from it. We are certainly living in interesting times though, to say the least. This is such a vivid reminder of just how interconnected everything is. How a business or industry in one country can be so dependent on manufacturing in another country.
I was just reading in the Nikkei Asia newspaper how Best Buy — one of the largest electronics retailers in the United States — imports about 60% of their products from China. They are already warning customers to expect price hikes. Can you imagine the price of your next smartphone all of a sudden doubling? That’s crazy. Well, regardless of what your job is, there is no escaping international trade.
Even here in New Zealand we import a lot, and exporting our products to the world is vital for the economy. Is New Zealand is a big exporter? Of what? Dairy products. And meat — beef and sheep, primarily. I was not aware of that. Oh, it’s a huge part of the economy here. And the meat industry is facing some interesting challenges. Don’t tell me. Trade tariffs? Trade tariffs are a part of it. But there are other, even larger issues as well. And is this what you are reporting on today?
Yes. I thought that today on Down to Business English, we could look at the changes and challenges facing New Zealand’s red meat industry. Well then, let’s dig into the meat of the matter. Great. Let’s do it. Let’s get D2B … Down to Business with Meat the Future: New Zealand’s Red Meat Industry in Transition. I have to admit, Samantha, my image of New Zealand — and I know this is a stereotype — is that there are a lot of sheep. What’s the saying? New Zealand has more sheep than people?
That is the stereotype, yes. And I’m not a big fan of it, to be honest. But, it’s not really something we Kiwis particularly like to hear. Fair enough. But... it is true, right? Hmm. Yes, it’s true. Although the ratio is falling, it's still something like five sheep per person. Wow. That’s a lot of woolly neighbors. I assume sheep are mostly raised for their wool. Actually, that’s a common misconception. Sheep are mainly raised for their meat.
Wool is a valuable byproduct — but meat is the main purpose. Hm. Interesting. I didn’t realize New Zealand had such a substantial red meat industry. Oh, we do. New Zealand’s red meat industry — which includes both beef and sheep farming — has played a major role in the country’s economy for more than a century. In fact, a hundred years ago, back in the 1920s, red meat exports helped make New Zealand the wealthiest country in the world per capita. Is that right!?
New Zealand used to be the richest country in the world? That’s a fun piece of trivia. It is. I had no idea that meat exports played such a big role in New Zealand’s history. They really did. Not only did the industry help build rural communities, it was, up until the 1990s, New Zealand’s strongest export. Don’t tell me … New Zealand wine took its place. No, not wine. Although that is in the top 10 list of New Zealand exports, it’s near the bottom. So, what is the top export category?
Do you know? As a matter of fact, dairy, eggs, and honey are at the top of the list, exporting $12.4 billion in 2024, followed by meat exports at $5.2 billion. So the real king of exports in New Zealand is not steak — it’s cheese and honey? That’s not what I would have guessed. Well, the industry is facing serious challenges — both at home and in overseas markets. Let me guess — part of that is due to changing diets? Yes, that is an issue.
In many wealthy countries like the US, UK, and Europe, meat consumption has been falling since the 1980s. And what would cause that? Studies show that apparently, when a country reaches about $40,000 GDP per capita, people actually start eating less meat. And that’s not the only shift. People are cooking at home less, and buying more ready-made meals, which usually include smaller amounts of meat Ah, so convenience is killing the cow.
But I imagine health and the environment are also part of the picture? Definitely. People are more aware now of red meat’s links to health risks and its impact on the environment — especially methane emissions from livestock. Climate agreements are putting extra pressure on farmers globally, to change how they operate. And New Zealand’s meat producers are feeling that pressure? They are. And at the same time, there’s another risk — China. China? Why would China be a risk?
China is New Zealand’s largest export market for red meat. But in recent years, they have started more and more of their own domestic meat production which is leading to less imports from other countries. So if demand from China keeps dropping, that’s a big problem for New Zealand exporters. Exactly. Trade politics, shifting consumer tastes, and local production in China are all putting pressure on New Zealand’s meat industry.
And I have heard something about lab-grown meat is advancing quickly too. Is that a threat? It could be. New technologies like cultured meat and precision fermentation — which produces animal proteins without animals — are developing quickly. These could seriously disrupt traditional meat markets in the next 10 to 15 years. Hmm. So where does all of this leave New Zealand’s red meat industry? Well, it’s not all bad news. There are signs of adaptation and resilience.
For example, even though New Zealand’s sheep population has dropped from 70 million in the 1980s to under 26 million today, the country still produces the same amount of lamb. Really? Fewer sheep, same output? Yes. Thanks to better genetics, nutrition, and pasture management, the industry has become much more efficient. That is a good sign. Is anything being done in the industry to increase the value of what they produce? Yes, there is. One growth area is co-products. Co-products?
What … what do you mean by co-products? Things like pharmaceuticals, cosmetics, and pet food that come from non-meat parts of the animal. They are becoming more valuable and helping shift the focus from volume to value-added production. So, instead of just selling meat by the kilogram, premium products are being created. Exactly. Many industry leaders say that's where the future lies — especially when it’s combined with ethical branding and sustainability storytelling.
Ah, so they’re not just selling meat they’re selling an image. Yes. There’s a big push to go beyond ‘clean and green’ and promote things like flavor, animal welfare, and regenerative farming. It's about showing the world that New Zealand meat is better for the planet — and better for you. Huh. Well, that fits global trends. People these days are caring more and more about where their food comes from — and how it was produced.
That’s why leaders in the industry believe that the sector can not only survive but flourish, if the right changes are made. And what about exports today? With all these challenges, are overseas sales still strong? Believe it or not, yes, they are still quite strong. In the past year, New Zealand’s red meat exports jumped by 28%. Huh. After all your doom and gloom talk, I’m surprised. What’s behind that surge? Strong demand from the United States and some parts of Asia, mostly.
But experts say the industry shouldn’t get too comfortable. That’s even more true now that the US has placed a 10% tariff on all New Zealand exports into their country. So last year’s export numbers might just have been a temporary bump. We’ll have to wait and see. Between climate goals, health trends, and economic uncertainty, it sounds like New Zealand’s red meat industry is standing at a crossroads. That’s a good way to describe it.
The future of this industry will depend on innovation, sustainability, and staying in tune with what global buyers are looking for. Well, I’ll definitely think twice the next time I see a 'Made in New Zealand' label on a meat package. As you should. There’s a lot more behind those labels than most people realize. Very true. And on that note, I think it is time for us to get D2V … Down to Vocabulary. Our first expression for D2V today is the idiom ‘the meat of the matter’.
The meat of the matter is the main, or most important part of a discussion. This idiom comes from the idea that meat, m - e - a - t, is the most important part of a meal. I used it right before we started today’s report. I said, “Let’s dig into the meat of the matter,” meaning, let’s stop the small talk and focus on the real topic — the challenges facing New Zealand’s red meat industry. And since today’s report is on the topic of red meat, it was the perfect time to use this idiom.
Can you give us another business-related example using ‘the meat of the matter’, Samantha? If you're in a meeting and want to focus everyone’s attention, this is a really useful expression. You can say something like, “Okay everyone, let’s get to the meat of the matter, why are our sales down this quarter?” Falling sales. A very important topic to discuss. What’s our next word? Our next word is the noun ‘a misconception’.
A misconception is an idea that many people believe is true — but it’s not. The idea is actually wrong. In the report, when Skip said he assumed that sheep in New Zealand are mostly raised for their wool, I told him that was a common misconception. Many people believe that, but it’s not true. So Samantha, what is the difference between the word ‘misconception’ and the word ‘misunderstanding’? Ah, great question. A misconception is a wrong idea that people believe over a long period of time.
It’s usually about facts or general knowledge. Okay. On the other hand, a misunderstanding is a one time event when someone doesn’t hear or understand something correctly. Ah, so if I think our meeting is at 2:00 pm but it’s actually at 3:00 — that’s a misunderstanding. That's right. But if I believe that sheep are raised mainly for wool, when they’re actually raised for meat — that is a misconception. You got it.
A misunderstanding is like a small mistake in conversation, but a misconception is a bigger idea that people believe, even if it’s not true. There is a common misconception that Tesla is just a car company. In reality, Tesla is also a major tech and energy company. They develop batteries, solar panels, and self-driving software. Hm. Nice example. Our final item for D2V today is the verb ‘flourish’.
When something flourishes, it grows in a strong and healthy way, or becomes very successful — especially in a positive or supportive environment. This word comes from the Latin word ‘florere’ which means to grow or bloom — just like a flower. In the report, Samantha told us that leaders in New Zealand’s red meat industry believed it could flourish if the right changes were made. In other words, they think the industry can grow and do very well in the future.
Samantha, can you give us another business-related example using flourish? Sure. The South Korean entertainment industry has flourished in recent years. Oh yes, it has. K-pop and Korean dramas have become super popular all over the world thanks to streaming platforms and social media. Which reminds me, I need to finish watching the second season of Squid Games. Would you like to help Down to Business English reach more people wanting to improve their Business English skills?
Follow Down to Business English on Apple Podcasts, YouTube Music, Spotify, or any place podcasts are found. Leave a rating and a review and tell everyone how much you enjoy the show. Thanks for that report on New Zealand’s Red Meat industry, Samantha. I’m no longer under the misconception that sheep are raised mainly for their wool. I’m glad I could clear that up for you. It’s nice to see how New Zealand farmers are working hard to innovate.
I just hope that they can keep moving in the right direction. D2B Members and Apple Podcast Subscribers — the bonus Down to Vocabulary episode for today’s report will be dropping in the next couple of days. In the bonus D2V, we’ll highlight five more words and expressions from today’s report. Those words and phrases will be: to claw back, a shift, a threat, the question pattern ‘Where does this leave things?’, And to stand at a crossroads.
D2B Members, be sure you have copied the URL for your member-only RSS feed from your account page on the D2B website and have pasted it into your podcast app. That way you will not miss that bonus Down to Vocabulary episode. Apple Podcast Subscribers — you don’t need to do anything. The bonus D2V episode will magically appear in your Apple Podcast app as soon as it’s released.
And if you are not yet a D2B Member or an Apple Podcast Subscriber, but find Down to Business English helpful for your English studies, do consider supporting the show by becoming a member or subscribing through Apple Podcasts. To become a D2B member directly through our website visit d2benglish.com/membership, and sign up today. And to become an Apple Podcast subscriber, just visit the Down to Business English show page in the Apple podcast app, and click ‘Subscribe’.
Thanks for listening, everyone. See you next time. Take care. Have a comment or question about today’s show? Don’t be shy… visit the D2B website or Facebook page, and post any comments or questions there. Skip, Dez, or Samantha will be sure to leave a reply. Down to Business English ... Business News, to improve your Business English.