Australia's April beef exports to Japan remain firm

Australian beef exports to Japan in April were only 353 tonnes swt short of volumes sent the same time last year, with shipments sustained by ongoing demand for frozen beef, up 4% from last April to 16,787 tonnes.

Buying from Japan was mainly focused on replenishing reduced frozen stocks in the market (particularly trimmings), despite the high Australian dollar and subsequent lift in export prices.

In contrast, chilled beef exports eased by 7% on-year to 13,038 tonnes, largely due to a decline in chilled grain-fed shipments which was down 13% to 8,448 tonnes. Limited availability and firm prices from Australia possibly impacted chilled demand from Japan, with shortfed fullset prices in US dollar terms around 25% higher compared with a year ago, according to MLA's survey.

Nevertheless, exporter returns in Australian dollar terms remained subdued during April, as the increase in US dollar prices did not offset the appreciation in the Australian dollar.