June 22, 2011

EU beef imports down 13% on-year

EU beef imports during the nine months to March were down 13% on-year to 139,654 tonnes slaughter weight, with an average import price rise of 23% to US$9,265/tonne.

Despite a small recovery in shipments during the 2009-10 period (when Argentine exports temporarily increased), total volumes remained 51% lower than 2006-07 when Brazilian supplies dominated the market.

The decrease in imports was a result of lower shipments and increased prices from Brazil (down 4% to 32,660 tonnes swt) and the current restrictions on the number of Brazilian farms eligible to export to this market since early 2008.

Scarce Argentine supplies have also contributed to the trend, with shipments dropping 32% to 32,471 tonnes swt, while Uruguayan shipments fell 24% to 29,290 tonnes swt, as this country experiences record domestic consumption levels, scarce grown steer numbers and record export prices.

In contrast, beef imports from the US jumped 57% during the period to 10,433 tonnes as the US took advantage of the grain-fed beef quota regime. In a similar way, shipments from Australia rose 13% on-year to 7,891 tonnes swt.