Australia ships more beef into Japan and South Korea

Japanese inquiries for Australian beef increased this week, largely driven by declining market inventory, while beef is in hot demand in South Korea as the country prepares for the Lunar New Year.

Japan's interest in frozen briskets and trimmings was strong, but overall supply was limited.

In the Japanese wholesale market, reduced availability lifted the price of US chilled chuck eye roll (choice grade) this week to around JPY820 (US$9.1) per kg, up JPY20 (US$0.22) from last week and the highest since April 2009.

Australian chilled chuck roll prices were also firm, averaging JPY725 (US$8) per kg for shortfed, and JPY1,000 (US$11.1) per kg for middlefed, up JPY10 (US$0.11) per kg.

Japanese trust in US beef had increased by 2% from a year ago to 28%, while distrust dropped 1% to 34%, according to a recent consumer survey by the US Meat Export Federation (USMEF).

South Korea will celebrate on February 14 the Lunar New Year - a peak period for Australian beef demand. Along with rising consumer demand to secure beef gift sets, prices for most imported beef cuts in the Korean wholesale market have strengthened in the last few weeks.

Australia exported a record 12,324 tonnes swt to South Korea during December to stock product in anticipation of strong consumer demand. From January 1-27, beef exports from Australia to South Korea totalled 4,961 tonnes swt, accounting for 13% of total Australian exports in January. Chilled items to South Korea during January accounted for 31% of shipments – up 3% year-on-year, attributed to low stocks at retail as demand soars.

Tight cattle supplies in Queensland, plentiful rain throughout December and January and increased competition from re-stockers and feeders all contributed to the lower exports to South Korea in January.