June 27, 2006

Australia aims to diversify export markets

Australia hopes to diversify its beef exports towards smaller importing nations and away from its three major markets of Japan, the US and South Korea, according to official forecasts issued Monday (Jun 26).

Australia has been paring down its reliance on its 3 major markets.

The 3 major markets' share of Australian beef exports is expected to fall from an estimated 90 percent this fiscal year to 82 percent next fiscal year starting Jul 1, according to Australian Bureau of Agricultural and Resource Economics (Abare), in its quarterly outlook.

The expected return of US beef to Japan and South Korea and the impending fall in volumes of Australian beef to those 2 countries would have the greatest impact on Australian beef this year, Abare said.

An expected production increase in the US would also likely result in weaker demand for imported beef and a fall in Australian exports, the report said.

However, the expected fall in exports to the big three importers would be more than offset by higher shipments to other markets such as Canada and Asia, Abare predicted. 

Australian beef still retains significant markets in Taiwan and Indonesia, the report noted. 

Australian beef exports next fiscal year starting Jul 1 are forecast at 915,000 tonnes valued at AUS$4.04 billion (US$2.9 billion) compared with exports in fiscal 2005-06 of an estimated 891,000 tonnes valued at AUS$4.41 billion (US$3.2 billion).