March 10, 2008

Australian beef exports shrink 16 percent in February

Australia's beef exports are showing subdued trends as they drop 16 percent in February at 66,570 tonnes swt, against the same period last year, due to limited supply.

Shipments to Japan and the US have been declining for the past six months.

The limited supply in Australia, partly caused by heavy rains in Queensland, resulted to a 10-percent drop in shipments headed to Japan.

Industry players said that the reduced beef supplies would continue as production is constrained and demand from Japan remains weak.

Beef shipments to Korea plummeted by 30 percent on-year due to market apprehensions on the re-entry of the US.

US deliveries also continued to fall in February as US cow slaughter increases and Australian cow supplies tighten.

Meanwhile, demand from Russia was considered positive, with exports increasing significantly to 1,613 tonnes swt last month.

Australian exports to the EU also jumped two-fold, as the EU placed restrictions on Brazilian beef.