Australia beef exports lower in 2009

Australian beef and veal exports for the 2009 calendar year totalled 927,277 tonnes swt - 3% below the previous year and 1% back on the average for the past five-years.

Contributing to the decline was a contraction in beef production throughout the second half of the year, along with the high Australian dollar and recession conditions in key exports markets.

The main influencing factor for Australian beef exports in 2009 was the rapid rise of the Australian dollar throughout the year, with the currency appreciating 42% against the US dollar since the beginning of March and 34% against the Japanese yen. The higher Australian dollar combined with the impact of recession, and the fallout from the global financial crisis, constrained returns to Australian exporters from Japan and the US during 2009. However, on a positive note, Southeast Asia continued to develop as a significant market for Australian beef, underpinned by a record volume of beef to Indonesia.

Japan maintained its position as Australia's largest beef export destination in 2009, with shipments for the year back 2% on 2008, at 356,567 tonnes swt. The high Australian dollar created very difficult trading conditions for exporters during the second half of 2009, which was further complicated by recession and deflationary conditions in Japan. However, with total shipments to all markets also declining in 2009, Japan's share of Australia's exports increased from 38% in 2008, to 38.5% in 2009 - but still below the recorded 44.5% set in 2005.

Despite Australian shipments to the US increasing 7% in 2009, to 251,479 tonnes swt, exports remained 16% below the average for the past five years, at 299,125 tonnes swt. Again, the high Australian dollar impacted shipments to the US in 2009, with some products diverted to more lucrative markets, while sluggish US consumer demand and a surge in dairy cow slaughter also impacted demand for Australian beef. Exports to Canada increased 44% for 2009, to 12,319 tonnes swt.

Indonesia established itself as Australia's fourth largest beef export destination in 2009, receiving a record 51,816 tonnes swt - up 57% on the previous calendar year high of 33,016 tonnes swt. Robust economic conditions and strong consumer demand underpinned the record shipments for the year, with over 6,000 tonnes swt shipped in both October and December.

Like Indonesia, a record volume of beef was also sent to a number of south Asian markets in 2009, including Malaysia with an increase of 30% to 8,026 tonnes swt; China up 97% to 5,286 tonnes swt; Hong Kong up 132% to 7,492 tonne swt; Thailand up 12% to 1,595 tonnes swt; and Vietnam up 31% to 1,002 tonnes swt.

A 15% increase for the year was also record to Taiwan, at 31,288 tonnes swt, while exports to the Philippines jumped 20%, to 16,958 tonnes swt. Exports to Singapore slipped 7% on the 2008 record volume, to 7,471 tonnes swt.

Exports to the EU at 9,193 tonnes swt and the Commonwealth of Independent States at 14,733 tonnes swt (mostly Russia), declined in 2009 from high 2008 levels, while shipments to the Middle East totalled a record 15,752 tonnes swt, an increase of 21% on the previous year.