January 7, 2014

Australia's beef exports set new record for 2013 

Australia's beef and veal exports totalled 1.1 million tonnes for 2013, thus setting a new record for the country.

It has exported 96,349 tonnes of beef in December, the highest volume on record for the month, which pushed total shipments for 2013 to 14%, or 136,000 tonnes.

Meat and Livestock Australia (MLA) says that the country's widespread drought pushed up slaughter levels, while almost all additional production was shipped to international markets.

As the increased supply of cattle resulted in processors working near full capacity, farmgate prices were lower on previous years, with very little competition from restockers, added MLA.

The December volume to Japan stood at 22,882 tonnes, down 1% on-year; while the aggregate volume was 288,795 tonnes, down 6% compared to 2012.

Australia faced strong competition from US after the age relaxation in February 2013, while demand for brisket from China surged, influencing lower volumes. Simultaneously, the Australian dollar moved higher to US$19.78 in 2013, compared to an average of US$17.32 in 2012, thus affecting the country's competitive edge.

With 154,833 tonnes shipped to China in 2013, China was Australia's third largest market.

Exports to the US, Australia's second largest market, fell by 5% on-year to 212,702 tonnes. MLA says that lacklustre demand in the US weakened the import demand. However, the easing of the Australian dollar, which averaged US$0.97 in 2013, provides an advantage for Australia's beef exporters.