May 2, 2012

 

Australia's April beef exports down 14% on month

 

 

As global markets saw sluggish demand and Australian beef production was constrained by a series of public holiday-shortened weeks, Australia's April beef exports fell 14% on month and eased 2.5% on year, marketing concern Meat and Livestock Australia Ltd. said Tuesday (May 1).

 

The country exported 71,937 boneless tonnes of beef in April, it said. Exports in the first four months of 2012 rose 0.5% from the same period last year to 281,182 tonnes, according to monthly export figures issued Tuesday by the Department of Agriculture.

 

"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," MLA reported in a statement.

 

Shipments to the US in April of 19,154 tonnes fell 28% on month but jumped 45% on year and took exports to the US in the first four months of 2012 to 81,045 tonnes, up 67% on year.

 

MLA said the 45% on-year jump occurred as historically high manufacturing beef returns continued to see Australian exporters looking to sell into that export market, Australia's second biggest.

 

During April, the indicative imported price for 90 chemical-lean grade Australian beef to the US averaged 3% above April last year and 18% above the five-year average at an April record high of AUD4.088 (US$4.22) a kilogramme, free alongside in Australia, MLA said.

 

For the first four months of 2012, the indicative 90CL price averaged AUD4.06 (US$4.19) a kilogramme, up 17% on the five-year average for the period, MLA said.

 

As for other major export markets, shipments to Japan of 24,692 tonnes in April fell 1.3% on month and lost 6.4% on year. Exports to Japan in the first four months of this year of 89,975 tonnes fell 14% on the year-earlier period.

 

Trading conditions for Australian exporters in Japan remained tough in April, with the combination of sluggish consumer demand and increased US competition assisted by a weaker US currency continuing to be reflected in reduced shipments, MLA said.

 

April exports to South Korea of 7,542 tonnes fell 4.8% on month and slumped 31% on year and were the lowest April total since 2007.

 

High beef production in South Korea combined with increased competition from the US continued to negatively influence demand for Australian product in April, MLA said.