Mixed start to 2012 for Aussie beef exports

03 February 2012

It has been a very mixed start to 2012 for Australian beef and veal exports, with January volumes up 13% on the corresponding period last year, but steady with the five-year average, totalling 47,163 tonnes swt (Department of Agriculture, Forestry and Fisheries – DAFF). However, it should be noted that January can be a very volatile month for beef exports, largely dependent on available beef supplies, with processors traditionally undertaking annual closures throughout the month.

However, the 13% increase in shipments compared with the same period last year must be viewed in the context of the huge disruption to logistics caused by the devastating flooding across southern Queensland in early 2011. Anecdotal reports throughout January indicated that export beef demand was very slow to start 2012, with the rising A$ and step back in buying activity influencing export returns to most markets. Also possibly influencing export demand during January was the very large shipments reported during the final two months of 2011, which saw a three-year high in November (89,747 tonnes swt) and all time high December (82,054 tonnes swt).

While exports to Japan for January 2012 were almost identical to January 2011 volumes, compared with the five-year average (19,340 tonnes swt) they declined 13%, to 16,799 tonnes swt. A small increase in frozen beef shipments (up 2% year-on-year to 9,648 tonnes swt) was offset by a decline in chilled volumes (down 2% to 7,151 tonnes swt), indicating that trading conditions to Australia’s largest export market remain difficult.

Reflecting the very small shipments to the US in January 2011, Australian beef and veal exports to the US for the first month of 2012 were up 97% year-on-year, totalling 11,774 tonnes swt. Helping boost shipments during the month was historically high import prices in the US for Australian manufacturing beef.

Shipments to Korea during January declined 13% year-on-year, and were 15% below the five-year average, totalling 6,772 tonnes swt − reflecting reportedly high beef inventories in the market and increased competition from US beef.

January shipments to both Taiwan (1,440 tonnes swt) and the EU (520 tonnes swt) increased 58% and 64%, respectively, year-on-year while shipments to the Middle East contracted 21%, totalling 1,527 tonnes swt.

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