May 2, 2012

Australian beef and veal exports declined by 3% on-year during April, to 71,937 tonnes, as global markets experienced a sluggish demand period, according to reports.

Continuing the trend of previous months, the US remained the bright spot for beef exports, while both Japan and Korea reported another on-year decline in monthly shipments.

Despite a 6% on-year decline in exports to Japan for the month, at 24,692 tonnes, Japan recaptured the mantle of Australia's largest beef export market in April, after being surpassed by the US in March. Trading conditions for Australian exporters remained very tough in April, with the combination of sluggish consumer demand in Japan and increased US competition in the market continuing to be reflected in reduced shipments.

Exports to the US in April jumped 45% on-year, to 19,154 tonnes, as historically high manufacturing beef returns continued to see Australian exporters looking to the US. During April, the indicative imported 90CL price for Australian beef to the US averaged 3% above the corresponding month in 2011, and 18% above the five-year average, at April. Indeed, for the first four months of 2012, the indicative 90CL price was up 17% on the five-year average, while beef exports increased 67.5% on 2011 levels.

High Korean beef production, combined with increased competition from the US, continued to negatively influence demand for Australian product during April. Exports for the month totalled 7,542 tonnes - down 31% on-year and the lowest April total since 2007.

Along with the US, the only other major markets to register a on-year increase during April were the EU (up 9%, to 1,431 tonnes), the Middle East (up 4%, to 2,260 tonnes) and Taiwan (up 38%, to 3,468 tonnes). Additionally, exports to Indonesia for April increased 80% on-year, to 1,391 tonnes - although this is second lowest monthly total for the past year.

Australian beef exports also totalled 4,470 tonnes to the Commonwealth of Independent States (mostly Russia) and, while this was 36% below April 2011, it was the highest monthly volume in seven months.

After a relatively fast start to the year, Australian beef shipments for the first four months of 2012 have slowed to be only 0.5% above the corresponding period in 2011, at 281,182 tonnes.