April 26, 2004

Australia Beef Exports To Asia Up 14% In First Quarter
 

The BSE-induced ban on US beef imports in most markets since late 2003 has seen a significant shift in the destinations for Australian beef during the first quarter of 2004. Exports to Japan, Korea and Taiwan now comprise 60% of total beef exports, up from 46% in the same period last year.

Following the absence of US beef to these markets, the countries had sought supply from other nations, including Australia.  In addition, the increased importance of these North Asian markets reflects the higher returns on offer with regards to other markets. 

Australian beef export values to Japan averaged A$5,444/ton in January, an increase of 15% on last year. In the month of February, exports were 8% higher, at A$5,103/ton. Likewise for Japan, export values to Korea have also increased, with average tonnage values for January (A$4,030/ton) and February (A$4,025/ton) jumping 8% and 9% respectively on last year.  

With Australian exporters placing a higher emphasis on North Asian markets, the proportion of exports sent to other markets has diminished.  Exports to the US during the March quarter accounted for 33% of total exports, compared to 37% a year earlier.  Despite strong imported lean manufacturing beef prices in this market, Australian exports of frozen cuts fell by 11% over the first quarter compared to levels a year ago.  The chilled beef segment has suffered the greatest blow, with exports falling 38% over the March quarter. This is probably because the product has been diverted to the more lucrative North Asian markets.  The average tonnage value of beef exports to the US in January fell 11% on last year to average A$3,263/tons, while exports in February were 13% lower at A$3,176/ton.