May 8, 2009
Global credit and economic woes hit Australian beef exports
Though higher beef supplies in March and early April and a much lower A$ (versus a year ago) did not stop Australian beef exports from declining during April, volumes dropped by 8.6 percent on April 2008 to 80,692 tonnes slaughterweight (swt) - the first year-on-year fall this year - due to the economic downturn.
Meat and Livestock Australia also said the continuation of tight credit and sufficient stocks of beef in some markets have also slumped Australia's beef exports. A sharp cutback in beef production in mid April for Easter likewise dampened product availability over the latter part of the month.
Shipments fell to Japan, Korea, Indonesia, the Philippines and Russia.
However, healthy demand from the US fast food sector and unusually low shipments due to the diversion of beef to Russia has increased Australia's beef exports to the US by 33 percent from last April to 26,009 tonnes swt. Strong results were also posted for Canada (up 250 percent to 1,460 tonnes), Hong Kong (up 113 percent to 685 tonnes), China (140 percent higher to 534 tonnes), the Middle East (up 61 percent to 1,150 tonnes) and Singapore (13 percent higher to 762 tonnes).
Exports to Japan in April were similar to March levels, at 30,178 tonnes, though 9 percent lower than April 2008. Remarkably, grainfed beef volumes increased by 17 percent to 9,721 tonnes, supported by firm retail demand and low import prices. Conversely, frozen product subsided by 13 percent to 16,090 tonnes, presumably because stock levels were adequate and demand was strong in other markets, particularly the US.
April exports to Korea were 8,543 tonnes, 37 percent lower year-on-year due to Korea's continued struggle with credit and stock issues as well as low prices (driven by US product discounts) and low beef demand especially from the foodservice sector.
Shipments to Indonesia fell 36 percent to 2,403 tonnes as importers had ample beef inventories carried over from the high Australian shipments sent in February and March. Exports to the CIS are slowly gaining strength and reached 1,703 tonnes in April, up from 1,037 tonnes in March but still 79 percent lower than April 2008.
