March 12, 2010

Australia's beef exports to Korea remains constrained

Australia's beef exporters reported steady demand from Korea this week, but limited cattle supply continues to constrain some suppliers from satisfying all customers.

While year-to-date volumes are up 7% on-year, a shortage remains in the Korean market - stock levels were higher and beef demand lower in the same period last year. While beef exports have lifted on last year, both short rib and chuck volumes year-to-date have decreased 17% and 2%, respectively.

Wholesale prices for Australian beef this week increased across the board as stronger demand at retail and foodservice, combined with low availability pushed up values.

Beef export volumes from Australia to Korea strengthened this month, with exports from March 1–9 totalling 3,187 tonnes, with chilled beef making up almost 33%.