March 7, 2013

Australia sees record levels for beef exports in Feb 2013

Australia's beef and veal exports have reached record highs in February 2013, due to rising demand from China and the Middle East.

According to data from Australia's Department of Agriculture, Forestry and Fisheries, Australian beef and veal exports reached 80,534 tonnes in February 2013, up 2% on-year. Exports for the first two months of the year totalled 135,681 tonnes, an 8% increase on the same period in 2012.

Analysts at Meat and Livestock Australia said this was driven by record monthly volumes to the Middle East, which were up 146% on-year in February to 5,463 tonnes. "This has largely been a continuation of the steady growth in Australian protein exports to the region over the past few years, with Australian beef exports in 2012 totalling 31,351 tonnes," they explained.

Monthly exports to China also reached a record volume of 11,866 tonnes, while exports to the Philippines, Taiwan and Thailand saw increases of 8%, 11% and 19% respectively.

However, the analysts pointed out that these gains were "in contrast to the ongoing tough conditions for higher-priced chilled beef into Japan and South Korea".

Australian beef exports to Korea were 2% down on-year, reaching 9,367 tonnes, while exports to Japan were down 10% on-year to 21,120 tonnes, the lowest February total for 10 years.

"While the change in access conditions for US beef slowed Japanese buying activity, the unfavourable movement in the Japanese currency and increased competition from China also impacted Australian volumes for the month," said the analysts.

Further losses were experienced in the US market, with exports down 23% on-year to 17,067 tonnes, which was "well below initial expectations at the start of the year", the analysts said. They added that the decline was most likely due to competition from China for manufacturing beef.

February also saw exports to Russia fall 54%, due to competition from Brazil, while exports to Indonesia fell 23% as a result of limited import permit allocations.

However, changes to EU import quotas on Australian grain-fed beef helped boost exports to the EU, which increased 18% on-year in February, and 33% in the first two months of 2013.