April 21, 2011
 

Australian beef and veal shipment values increase in February

The value of Australian beef and veal exports increased significantly during February, rising 49% on year to reach US$400 million Freight On Board (FOB).

The lift in export values for February was assisted by a 24% rise in overall shipments, which was underpinned by a surge in production, as cattle turnoff increased in Queensland because producers took advantage of the drier weather.

Export prices for many of the cheaper cuts of beef also remained strong during the month, with the US imported 90CL beef indicator averaging AUD3.94/kg (US$4.24), 14% higher than a year earlier. The higher prices for manufacturing beef from the US, and other markets, helped to offset some of the impact of the stronger Australian dollar, which averaged 13% higher on the same period in 2010, at US$1.01.

Export values rose 35% on year to Japan at US$161 million and 129% on year to Korea at US$85 million, with volumes shipped to both markets increasing. Export values also jumped 14% to the US at US$55 million, despite a 6% decline in shipments. 

Values were very strong during February to Australia's rising markets, with beef and veal shipments to Russia amounting to AUD14 million (US$15 million) and the Middle East totalling at AUD9 million (US$9.68 million), both increase 160% and 20% respectively, from the same period in 2010. Southeast Asia continued to be an increasingly valuable destination for Australian beef, with exports for the month valued at US$33 million, up 48% on year.