Australian beef exports down in Q1

The value of Australian beef and veal exports for the first quarter of 2010 declined 25% on-year, at AUD825 million (US$677 million), reported Meat and Livestock Australia (MLA).

The drop is thought to reflect the combined impact of lower Australian beef exports and the sharp jump in the value of the Australian dollar.

MLA reports that a significant decline in export values from the US and Japan during the first quarter made up most of the AUD269 million (US$221 million) decline in total export returns, along with a reduction to Indonesia, the EU, Taiwan and Canada.

Returns in the March quarter of 2009 were boosted by a much lower Australian dollar, averaging US66.4¢, compared to US90.5¢ for the first three months of 2010 — a year-on-year increase of 36%.

Added to the constraining influence of the higher Australian dollar on export returns, total shipments for the quarter declined 14% on-year, to 188,368 tonnes shipped, largely due to a 46% decline to the US.

Export returns from the US fell 52% on-year for the March quarter, to only AUD144 million (US$118 million) FOB, the lowest start to a year since 1998.

With US beef prices increasingly steady throughout April and early May, export returns and volumes are expected to improve during the second quarter.

Total beef and veal exports to Japan, Australia's most lucrative beef export market, declined 22% on-year, to AUD375 million (US$307 million) FOB, making up 45% of total returns for the quarter.

For Japan, while the total volume of beef sent for the quarter increased 2% and some increase in export prices was recorded, the influence of a 31% appreciation in the Australian dollar against the Japanese yen reduced returns to Australian exporters.