June 24, 2009
Australia beef exports to suffer in 2009-10
Australian beef exports will decline both in terms of volume and value, in the next fiscal year beginning July, according to the Australian Bureau of Agricultural and Resource Economics (ABARE) forecast Tuesday (Jun 23).
Beef exports in 2009-10 are projected to reach 940,000 bone-free tonnes valued at A$4.52 billion compared with this year's 960,000 tonnes valued at A$4.85 billion, Abare said.
Beef shipments to the US are forecast to increase, but volumes to Japan and South Korea are expected to fall, Abare said.
A contributing factor to the decline in exports will be lower-than-expected shipments to emerging markets, particularly Russia.
Abare noted that export prices of Australian grass-fed and short-fed beef have declined sharply in Japan since mid-2008 as underlying demand weakened.
In Japan and South Korea, rising competition from US beef is seen to lower demand for Australian beef.
Australian exports to the US will increase in 2009-10 due to rising demand for cheaper cuts of meat amid the ongoing economic downturn.
Live cattle exports next fiscal year is forecast to drop to 780,000 head from 795,000 head this year, reflecting the impact of the weaker economic growth assumed in 2009 and 2010 for Indonesia, other Southeast Asian countries and the Middle East, Abare said.
