June 20, 2012

Australia's beef exports to smaller markets likely up

Australia will maintain overall beef shipments to the main markets of Japan, the US and South Korea while expecting to direct slightly larger volumes to smaller markets including Taiwan, a government commodities agency reported Tuesday (June 19).

Exports to smaller markets will rise 4% next fiscal to 313,000 boneless tonnes, after rising an estimated 5% this year ending June 30, the Australian Bureau of Agricultural and Resource Economics and Sciences, or Abares, said in its quarterly outlook statement.

Annual exports from Australia, one of the top suppliers to the global trade along with Brazil and the US, will likely reach AUD4.47 billion (US$4.52 billion) next year, little changed from this year.

The continued absence of US beef in Taiwan is expected to result in increased demand for Australian product, which jumped an estimated 23% to around 38,000 tonnes this year.

Taiwan's Food and Drug Administration increased the number of tests on US beef for ractopamine, a banned substance, from March 20, which has resulted in a near-cessation in shipments from the US, where ractopamine is widely used.

Ractopamine is also authorised for use as a feed additive in Canada, Japan and Mexico to fatten pigs and cattle, according to the European Food Safety Authority.

The expected decline in US beef exports to most Southeast Asian markets next year, except Indonesia, may also lead to greater demand for Australian beef.

Australian shipments to the Middle East are forecast to rise next year on the back of greater demand for packaged beef--as opposed to freshly slaughtered meat from live imports--and Saudi Arabia's ban on imports of US beef from April 19, Abares said.

The agency forecast exports to the US next year will rise 7.3% to 220,000 tonnes but shipments to Japan will fall 3.1% to 315,000 tonnes, while exports to South Korea will ease 2.4% to 122,000 tonnes.

Total beef shipments will rise 1.6% to 970,000 tonnes, Abares said.