February 22, 2013

Australia expects increase in beef exports during 2013

Australia's beef export has increased above 2012's record due to improving beef and lamb output and rising shipments to China.

With beef demand for the start of 2013 challenging in Japan and Korea, the rising influence of China for Australian beef has been welcome, adding another large buyer to the market.

A review of beef exports for the first three weeks of February shows China flexing its buying muscle, with beef exports estimated to go close to cracking the 10,000 tonnes. This would be the highest Australian monthly beef volume on record to China, placing exports for the first two months of 2013 over 14,000 tonnes - and on track to easily exceed the 2013 MLA forecast of 35,000 tonnes. Putting the recent surge in context, prior to 2012 (32,900 tonnes), the largest calendar year total to China was only 7,200 tonnes.

While taking a larger proportion of exports compared to beef, China continues to take increasing volumes of Australian lamb, with shipments for February estimated to be up 15% on-year, approaching 3,600 tonnes. For 2012, exports increased 39% for the year, to 29,521 tonnes.

Cattle prices this week were largely steady, as some good falls greeted producers across Queensland - with the forecast for more rain in the coming week.

Lamb prices caught up again across the heavier categories.