Australian beef exports to Japan drops in 2009

Exports of Australian beef and veal to Japan in 2009 totalled 356,567 tonnes swt, 2% below the previous year, amid the strengthening Australian dollar, Japan's economic turmoil and deepening deflation concerns in the market.

Australia shipped 28,829 tonnes swt of beef to Japan during December, back 9% year-on-year.

A significant improvement in 2009 was recorded for Australian chilled grainfed beef exports, which increased 10% from the previous year, to 113,711 tonnes swt. However, this was still 10% below the average for the previous five-years, which was boosted by a surge in shipments in 2005 and 2006. The fall in feed grain costs and firm sales at the Japanese retail sector were major contributors to the increase in Australian grainfed beef shipments.

In contrast, frozen grassfed shipments declined 7% for the past calendar year, to 146,162 tonnes swt, but were 2% above the five-year average. Increased stocks in the market, following higher late 2008 shipments resulted in slower export demand during the first half of 2009, in addition to the subdued performance of the foodservice and processing sectors throughout 2009.

For the 2009 calendar year, grassfed beef made up 56% of total Australian beef exports, at 201,379 tonne swt, with grainfed shipments totalling 155,187 tonnes swt.