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April 15, 2014

 

Australia's Q1 beef exports to South Asia up 44%

 
 
Australia's March quarter shipments to South Asia (excluding China and Indonesia) reached 13% of the country's total exports, at 57,879 tonnes ship weight (swt).
 
This was driven by the increased availability of Australian red meat and the positive fundamentals.

 

According to the Department of Agriculture, Australian beef and veal exports during the first quarter lifted 4% on the five-year average, at 25,860 tonnes swt. The high shipments were assisted by a record March quarter volume to Taiwan (at 8,821 tonnes swt), Malaysia (at 3,980 tonnes swt), the Philippines (at 7,524 tonnes swt) and Thailand (at 1,406 tonnes swt).

 

Despite lower US beef production and apparent greater focus on other markets, Australian chilled beef (particularly grain-fed beef) exports to Taiwan continued to be impacted by US presence. Australian chilled grain-fed beef exports were 55% less than the March quarter last year, at 275 tonnes swt, while chilled grass-fed beef rose 40%, to 646 tonnes swt.

 

In contrast, chilled beef exports to Malaysia during the first quarter rose 35% on-year, at 473 tonnes swt, with chilled striploin up 45% on-year, at 113 tonnes swt. Over the past four years, Australian loin (cube roll, striploin and tenderloin) exports to Malaysia have improved steadily, with shipments for the first quarter 2014 at 437 tonnes swt (up 23% on-year).

 

The increase to the Philippines was underpinned by manufacturing beef - up 58% on-year, at 6,791 tonnes swt. While demand for shin/shank reportedly was higher in recent months, the volume to the Philippines during the first quarter was down 22% on-year, at 225 tonnes swt, influenced by China's strong demand.

 

During the first quarter, Australian sheep meat exports to South Asia consisted of 6,119 tonnes swt of lamb and 9,803 tonnes swt of mutton - both record volumes. This was assisted by the greatest quantities of sheep meat exported to Hong Kong and Malaysia.

 

In terms of Hong Kong, the top four cuts accounted for 92% of total sheep meat exports. The cuts included breast and flap (at 1,695 tonnes swt, the majority of which was lamb breast and flap), carcase (961 tonnes swt, with 881 tonnes of mutton carcase), manufacturing (660 tonnes swt – all lamb) and neck (at 473 tonnes swt, with 388 tonnes swt of lamb neck).

 

In the case of Malaysia, carcase and shoulder represented 81% of total sheep meat exports, at 2,835 tonnes swt (with 2,723 tonnes swt of mutton carcase) and 1,807 tonnes swt (1,245 of lamb shoulder), respectively.

 

Australian goat meat exports to South Asia during the March quarter totalled 1,680 tonnes swt (up 38% on-year), the majority of which was destined for Taiwan (at 1,447 tonnes swt).

 

Australian offal shipments to the region increased 25% on-year, at 14,416 tonnes swt. While Malaysia (1,798 tonnes swt), the Philippines (1,352 tonnes swt) and Thailand (1,581 tonnes swt) took the highest Australian offal volumes on record, the largest destination within the region remained Hong Kong, at 8,153 tonnes swt (92% or 7,534 tonnes swt was tripe).

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