May 19, 2008

 

US beef exports expands 34 percent in Q1 2008

 

 

US beef exports increased 34 percent during the first quarter of 2008 compared to the same time last year., to 163,361 tonnes cwt, assisted by weak dollar, market re-openings and strong demand in Mexico, Canada and the China region, Meat & Livestock Australia (MLA) reported.

 

The recent announcement of US re-entry into the Korean market and an expected announcement of an easing of restrictions in Japan later this year should see US exports increase further, the agency said.

 

Mexico and Canada continue to be the top two markets for US beef exports, with shipments increasing 15 percent (69,831 tonnes cwt) and 67 percent (36,483 tonnes cwt), respectively.

 

After a huge jump in US beef imports, Vietnam has emerged as the fourth largest market for US beef for the first quarter of 2008. The country's US beef imports soared from 1,080 tonnes cwt in Q1 2007 to 13,044 tonnes cwt Q1 2008, reflecting  the tighter beef supplies in the Greater China region.

 

US beef shipments to Japan during the first quarter of 2008 have jumped 25 percent  (16,128 tonnes cwt) on 2007. Availability of US cattle under 21 months is starting to rise, which should see a stronger US presence in Japan, the agency said.

 

Meanwhile, in South Korea, uncertainties over US beef clouded the wholesale market this week, resulting in reduced demand for all beef, including domestic Hanwoo products. Still, wholesale prices for Australian cuts remained firm, possibly suggesting low stock levels in the market. Consumers' protests against US beef gave momentum to pork sales, reportedly increasing its volume by 20 percent.

 

Export activities were still generally slow this week, though some companies reported increased inquiries. With the Korean governments' decision to delay US beef imports, interest from Korean buyers could strengthen in the coming week.

 

In Japan, beef purchases were up during the country's Golden Week holidays.

 

Retail sales of Australian beef during the first half of Golden Week (Japan's spring holiday season) were positive, as purchases improved 7 percent from previous week to 10.1kg/1,000 customers, according to Japan's Agriculture and Livestock Corporations of Japan.

 

Overall, beef purchases also increased 7 percent or 1kg, to 15.2kg/1000 customers.

 

In contrast, chicken sales fell 1 percent to 18.5kg during the same period, suggesting consumers' preference to enjoy beef during the celebratory week. Beef demand for the rest of May and June is traditionally low, until it picks up again after the summer rains (July onwards).

 

Export trade with Japan was modest this week, with reasonable interest from buyers, although bidding prices were still soft. Chilled loin cut prices dropped due to weak demand, while most frozen prices remain unchanged.