June 4, 2012

Australian beef exports rises by 3% in May

Increased shipments during the last week of May have boost Australian beef and veal exports by 3% beyond the corresponding month in 2011, totalling 86,886 tonnes, according to Australia's Department of Agriculture, Forestry and Fisheries.

The best performing markets for May included the US, Taiwan, Russia and Singapore. Underpinned by steady demand for manufacturing beef, Australian shipments to the US for May jumped 30% on-year, to 19,742 tonnes. For the first five months of 2012, Australian shipments to the US have increased 59% on-year, exceeding 100,000 tonnes.

Beef exports to Japan reached almost identical volumes to last year at 30,578 tonnes - halting a three month run of falling on-year shipments. While chilled shipments declined 11% on-year, at 11,603 tonnes - it was the highest monthly volume since November last year. Illustrating a tougher period for Australian exporters in recent months, Australian shipments to Japan for the first five months of 2012 are down 11% on-year, at 120,553 tonnes.

On-year, exports to Taiwan jumped 15% during May, to 3,744 tonnes, as robust demand for imported beef continued. For January to May, Australian exports to Taiwan were up 9%, at 14,378 tonnes - placing it as Australia's fifth largest beef export market behind Russia and ahead of Indonesia. Exports to Singapore for May jumped 99%, to a monthly record 1,606 tonnes.

Shipments to Russia were strong again in May, to 5,422 tonnes, but remained 11% below the corresponding month in 2011. Interestingly, exports to Russia have increased for every month so far in 2012 (coming out of the northern winter), with total shipments for the five months at 17,250 tonnes.

After a very slow start to the month, Australian beef exports to Korea finished May at 9,130 tonnes - down 20% on-year, but at a much higher level than what looked likely half way through the month. Competition from both US and domestically produced beef continues to constrain demand for Australian product, with exports so far in 2012 back 34%, at 40,870 tonnes.

Overall, May's result illustrates the very mixed trading conditions facing Australian exports so far in 2012, with some markets experiencing rapid growth, while others have been struggling. For the first five months, total exports increased 1% on-year, to 368,068 tonnes.