February 11, 2008

Australian beef exports at a slow start in 2008

Australia's beef exports moved slowly at the start of 2008, with shipments for January back 20 percent on-year, to 43,854 tonnes swt, the lowest monthly total since January 2006.

The Department of Agriculture, Forestry and Fisheries said that while beef exports traditionally drop to an annual low during January, unfavorable trading conditions such as shortage in grainfed cattle and heavy rain throughout Queensland during December and January were key factors for the decline.

Australian shipments to Japan for January declined 28 percent on-year, to 16,840 tonnes swt, the lowest monthly volume since March 2002.

Korea-bound exports also slumped after a fast finish to 2008, dropping 36 percent for January, to 8,525 tonnes swt.

Low domestic cow supplies, high Australia dollar and a sluggish import demand contributed to low beef exports to the US which declined 15 percent during January, to 11,140 tonnes swt, the lowest monthly volume since January 1997.

However, with the significant decline of shipments to Australia's three main beef export markets, the US, Korea and Japan, volume increases were seen in Indonesia and Singapore.

In 2007, Australian beef exports were valued at AUD4.5 billion (US$4.05), a fall of 8 percent from 2006.