March 5, 2012

As shipments to the US surged, Australia's February beef exports rose higher from a year ago, offsetting significant declines in shipments to Japan and South Korea, official figures showed.

February exports rose 2% to 78,704 boneless tonnes, taking shipments in the first two months to 125,872 tonnes, up 6.1%, the Department of Agriculture said in a monthly report issued late Thursday (Mar 1).

Australia exports beef valued around AUD4.5 billion (US$4.8 billion) a year and is one of the top three suppliers to the global trade, along with the US and Brazil.

Exports to the US in February jumped 71% to 23,339 tonnes.

Marketing concern Meat and Livestock Australia Ltd. said Friday (Mar 2) that strong US demand, particularly for grinding product or beef suitable for use in manufacturing, is expected to continue.

US cow slaughter is expected to tighten in coming months and demand from retail and food service continues to shift towards less expensive items, MLA said.

Exports to Japan fell 22% to 23,456 tonnes.

"Trading conditions remained difficult during the month, with increasing shipments from the US into Japan and the robust Australian dollar making Japanese buyers extremely cautious with their commitment to Australian beef," MLA said in a statement.

February exports to South Korea fell 38% to 9,556 tonnes.