Australian grainfed beef exports show modest rise

Australia exported 68,018 tonnes of grainfed beef during the first four months of 2010, up 7% on-year, as feedlot turnoff increased throughout the first quarter.

Over the same four-month period, Australian grassfed beef exports declined 17% on-year, to 195,104 tonnes swt, as heavy rain brought flooding and transport disruptions to large regions of Queensland and northern NSW. With the reduced grassfed cattle turnoff, total adult cattle slaughter for March quarter declined 6% nationally, which contributed to a 12% decline in exports for the same period, totalling 263,122 tonnes swt.

Shipments to Australia's largest grainfed market, Japan, declined 4% on-year, to 47,222 tonnes swt. Grainfed beef prices to Japan came under increasing pressure throughout the period, with the premium between grainfed beef, and cheaper grassfed beef, narrowing to their smallest margin in many years. With the reduced returns, Australian exporters looked towards other markets, with shipments to Korea lifting 48% on-year, to 10,837 tonnes swt, along with an 8% rise to the US, to 4,520 tonnes swt.

Grainfed exports also continue to expand to developing markets, where consumers preference for, and ability to pay for the premium product, continues to increase. Shipments grew 106% on-year to China, 60% to South-east Asia and 215% to the Middle East, although total volumes still remain comparatively low.

Grainfed beef shipments accounted for 26% of all beef exports between January and April, up from 21% a year earlier.