Beef exports decline due to A$ and supplies
4/07/2008
Beef and veal exports fell 4.5% in 2007-08 from the record in 2006-07, to 930,319 tonnes, reflecting a fall in beef supplies and the higher A$ against almost all other key currencies.
Beef exports to the US in 2007-08 fell 21%, to only 240,000 tonnes, the lowest for 10 years. This reflected the low US$, sluggish consumer demand and better prices in other markets. Similarly, the ongoing threat of a US return, a higher A$ and fall in grainfed product availability saw a 9% fall in shipments to Japan (365,310 tonnes) and 7% decline to Korea (146,000 tonnes).
In contrast, demand was buoyant across a range of secondary markets, led by Russia. Exports to the CIS (almost all to Russia) hit a record of 45,584 tonnes, up from only 8,000 tonnes the previous year. This was due to growing local demand, falling Russian and EU supplies and a sharp easing in competition from Brazil and Argentina.
These factors also explain an 80% jump in exports to our main South East Asian destinations of Indonesia, Singapore and the Philippines (47,517 tonnes), a 63% rise to China and Hong Kong (5,136 tonnes) and 28% rise to the EU (9,265 tonnes).
In the month of June, beef and veal exports fell 13% from the record quantity sent in May, due principally to lower beef supplies. At 81,861 tonnes, exports were still 8% higher than June 2007 and 1% above the five-year average.
While the fall in June exports was shared across all significant markets, those to the US were particularly low (16,166 tonnes), due to the weak US$ and stronger prices elsewhere. Exports to Japan and Korea also declined on May, due to seasonal factors and the imminent return of US beef to Korea.
Although lower than May, exports to Russia remained very high, at 10,623 tonnes – making it Australia’s third largest market above Korea. Similarly, exports to Australia’s main South East Asian markets and to the EU were double those a year earlier.
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