February 9, 2012

Australia's 2011 beef exports hit US$5 billion

High global beef prices and surging export returns from smaller markets have driven Australia's beef and veal exports to a 7% increase of AUD4.7 billion (US$5 billion) for 2011, according to the Australian Bureau of Statistics.

Last year's record was the largest calendar year value for the past three years, and the fourth highest on record. The calendar year record for Australian beef and veal export receipts and volume was set in 2008, at AUD4.99 billion (US$5.4 billion) and 957,000 tonnes respectively - a year in which the Australian dollar averaged US$0.85. In 2011, the AUD averaged US$0.10, up 14% on-year, with its impact on price competitiveness more obvious on Australia's major markets of North Asia, especially for chilled product exports to Japan.

Continuing to demonstrate the diversification of Australia's beef export markets in 2011, the two dominant destinations of Japan and the US only contributed to 51% of total beef and veal exports earnings in 2011, at AUD2.4 billion (US$2.6 billion). This is the lowest combined total to the two markets since 1999, at 35% down of AUD1.29 billion (US$1.4 billion), on the record value registered in 2004, when the two markets made up 79% of all export returns.

Individually, export returns from Japan in 2011 declined 4% on-year, to AUD1.66 billion (US$1.8 billion) - in line with the fall in volumes, as the lower returns achieved for chilled beef was partially offset by higher prices for frozen beef. Australian beef and veal export values to the US in 2011 totalled AUD744 million (US$804 million), only down 4% on the previous year despite a 9% contraction in total shipments.

Helping to offset the reduced returns from Japan and the US was a rise to almost all other markets, led by Korea, with total export returns jumping 22% year-on-year, or AUD411 million (US$444 million), to fall just shy of AUD2.3 billion (US$2.5 billion). Since 2000, export returns to the Australian Industry from markets, other than Japan and the US, have increased 168%, or AUD1.44 billion (US$1.6 billion). Korea, Australia's third largest export market in volume for 2011 surpassed the US to become the second largest export market in value, increasing 22% year-on-year, to AUD775 million (US$838 million).

Other markets to register growth in value for 2011 included Taiwan, up 37%, to AUD196 million (US$212 million), the Middle East, up 31%, to AUD167 million (US$180 million), China and Hong Kong, up 35%, to AUD131 million (US$142 million) and the EU, up 29%, to AUD129 million (US$139 million). However, while there was slight declines recorded to both Russia, down 5%, to AUD234 million (US$253 million) and Indonesia, down 5%, to AUD171 million (US$185 million) in 2011, total values remained well above historical levels.