January 9, 2008

Australian beef exports to Japan falls 7 percent in 2007

Australian beef exports to Japan fell to 377,684 tonnes in 2007, 7 percent below the record set in 2006.

The fall was largely due to the high Australian dollar, competition from US and buyers' unwilling to cover the rising cost of producing grainfed beef, Meat and Livestock Australia said. 

Chilled beef shipments to Japan declined significantly, going back below 200,000 tonnes for the first time in four years.

Grainfed volumes fell 10 percent from 2006, to 171,451 tonnes accounting for 45 percent of total exports.

Frozen grassfed saw a slight growth, owing to lively sales in the Japanese fast food sector and a shift in buying towards lower price cuts.

The Australian dollar appreciated 13 percent against the Japanese yen in 2006.

Also, grain prices, which rose close to 50 percent last year, increased production costs of grainfed operations. However, Japanese consumers have chosen to switch to cheaper meats like pork and chicken rather than pay high prices.

US beef, which was allowed into Japan last year, also put a dent on sales of Australian beef, despite age restrictions still in place.