January 7, 2013

Australia beef exports to Japan drop 10% in 2012

Australia's beef exports to Japan have reached a yearly total of 308,537 tonnes, a 10% drop from 2011 and the lowest volumes since 2003.

While Japan remained as Australia's top export destination, its share of Australia's global beef trade declined from 36% in 2011 to 32% in 2012.

The tough economy, increased supplies of US beef and demand for Australian frozen beef from existing market segments underpinned the trade during the year, despite Japanese importers being forced to compete at higher prices for frozen product against South East Asian, Chinese and US buyers.

Chilled beef shipments to Japan eased 7% on-year, to 129,229 tonnes, the lowest yearly volume since 1990. Australian chilled grainfed exports eased by 8% to 85,720 tonnes, impacted by competition from US beef and higher Japanese production.

While the potential timing of the US beef import protocol change continues to attract attention from the Japanese beef trade, buyers are also concerned with higher offer prices from the US, increased buying of Australian beef by China, and their new Prime Minister's economic policies that has seen the depreciation of the Japanese yen against the AUD and the USD.