Australian beef exports continued their steady recovery during May, hitting a 14-month high, with increased shipments to the US, Russia, Korea and Taiwan.

Exports for the month, at 85,762 tonnes swt, were up 4% on-year, assisted by higher cattle slaughter since late April and a drop in the Australian dollar throughout the month.

There was an increase in exports to the US, at 23,871 tonnes swt – the highest monthly volume since May last year and 45% above average shipments in March and April. However, while shipments for the month were assisted by more lucrative returns from the US, with import prices averaging 12-30% higher on-year for manufacturing beef products, shipments for the month were still comparatively low historically, down 15% on the average for the past five years.

Reflective of a very slow production start to 2010, Australian beef shipments to the US were still 35% below year ago volumes for the first five months of 2010.

Exports to Japan for May declined 10% on-year, to 30,754 tonnes swt. Trade conditions to the US remain tough, as the economy and consumer demand continues to struggle. However, a reduced supply of grain-fed cattle impacted shipments for the month, with total grain-fed beef shipments falling 12% on-year, with chilled shipments back 18%.

Korea continues to be a robust market for Australian beef in 2010, even with increased competition from US beef. Exports for May reached 10,831 tonnes swt, an increase of 36% on-year, with exports for January to May up 18% on the same period last year.

Despite some reports of sluggish buying early in the month, Australian beef exports to Russia reached 4,988 tonnes swt during May, as supplies from traditional South American suppliers continue to remain tight, namely Argentina.

Taiwan and the Philippines were another two markets to record an increase in Australian shipments during May, up 18% and 29% on-year, respectively. Shipments to Indonesia have cooled off in recent months, with exports for May back 18% on-year, to 2,490 tonnes swt.

For the first five months of 2010, Australian beef and veal exports were back 9% on-year, at 348,883 tonnes swt.