June 4, 2007

Japan buys less beef from Australia

Japan's purchase of Australian beef were quiet last week as Japanese importers continue to pressure Australia's beef producers for lower prices.

Grassfed fullsets were traded at around 212 US cents per pound, similar price from last week while shortfed fullsets dropped by 4 cents to 236 US cents per pound. Australian beef exporters are finding difficulties to match the buyers' expectations amid low cattle prices this week as the Australian dollar continues to be strong and supply of export quality stock is expected to further tighten.

In the local Japanese market, prices for dairy cattle (B2 grade) went up 118 yen (US$0.96) to 748 yen (US$6.13) per kilogramme, possibly due to less cattle of this category being offered in the market this week. Analysts foresee a gradual decline of Japan's dairy cattle heads as milk production becomes more tightly controlled.