April 24, 2006

Australian beef in sizzling demand as Japan enters Golden Week
 

Australian beef prices in Japan are rising this week as demand strengthened before the onset of the Golden Week holidays, Meat & Livestock Australia said.

With the industry believing sales during the Golden Week holidays in early May will go well, importers now are looking beyond that period to ensure sufficient supplies, it said.

Retailers are expecting solid sales as consumers stock up for Golden Week festivities.

With low production from the Japanese industry and no competition from the US, Australian beef is gaining popularity in Japan, MLA said.

Prices in Japan for Australian chilled grass-fed fullsets rose 5 cents to US$1.98 a pound estimated carcass weight. A fullest consists of a dozen different cuts of beef.

The estimated free-on-board price for this product in Australia rose 7 cents to A$5.46/kg (US$4.04/kg), up from A$5.36/kg (US$3.99) a year earlier.

Beef cattle prices in Australian saleyards jumped this week. As two-thirds of Australian beef production is exported, export demand exerts a great influence over Australian saleyard prices.

Trade steer prices rose, assisted by strong lotfeeder and restocker demand, while lower offerings of grown steers also helped boost prices.

Cow prices rose as demand from export processors strengthened, due to a 36 percent drop in the supply of grown steers this year.

This reflects the record number of trade steers in feedlots with fewer grassfed cattle being grown fully before sale, MLA said.