June 22, 2009

The value of Australian beef and veal exports during the first four months of 2009 increased 14 percent on-year, as the lower Australian dollar offset weaker export demand and beef prices resulting from the global economic slowdown.

Exports during the period were valued at A$1.47 billion, the second highest start to a year on record after 2007.

But the higher returns have not translated into higher saleyard prices, with hides and co-product prices remaining low. Overall export demand also remains sluggish, as recessions, tight credit, currency volatility and lower competition between key markets affected beef prices, particularly the more expensive cuts. 

Japan remains Australia's highest value beef export market, with returns increasing nine percent to A$635 million during the four-month period. Export volumes dropped one percent on-year, as the lower Australian dollar against the yen and improved supply and demand for chilled grainfed beef helped offset the demand impacts from the recession in Japan.

The value of Australian beef and veal exports to the US jumped 68 percent to A$400 million, the highest start to a year since 2003. Much of the increase was due to a 53-percent growth in volumes and the Australian dollar averaging 26-percent lower year-on-year. But the average tonnage value of chilled beef fell 11 percent on-year due to the recession pressurising demand and beef cuts.

The value of Australian beef and veal exports to South Korea fell during the period, due to increased US imports, sluggish consumer demand and large beef stocks at the start of the year. Value of exports in January to April fell 35 percent on-year to A$152 million, the lowest level since 2004.

Beef shipments to Indonesia surged 48 percent during the period, with export returns up 81 percent to a record A$51 million.

Other markets to record year-on-year increased returns so far this year include Canada, Taiwan, China, Hong Kong, Singapore and the Philippines.

US$1 = A$1.24913 (Jun 22)