July 8, 2009

Australian beef and veal exports achieved the second highest volume on record in the past fiscal year, despite most export markets facing the most disruptive and turbulent economic and financial conditions in decades.

Shipments for 2008-09 reached 967,729 tonnes swt, up four percent on the previous year and only one-percent below the 973,880 tonnes swt record set in 2006-07, according to data from the Department of Agriculture, Fisheries and Forestry).

One of the main features of the export trading year was the fluctuating Australian dollar due to the economic and financial crisis, which created a disruptive environment for importers and traders of Australian beef.

Australian shipments to Japan for 2008-09 declined one percent on the previous year, to 362,629 tonnes swt, the lowest fiscal year since 2003-04. Exports to Japan for the past year were largely characterised by subdued consumer demand, as the Japanese economy plunged into deep recession.

Australian beef exports to the US for 2008-09 jumped 17 percent year-on-year, to 281,971 tonnes swt, which was largely a reflection of the very low shipments at 240,360 tonnes swt in the previous year due to Russian buying. Exports in 2008-09 remained 10-percent below the average for the past five years. US recession led to higher demand for manufacturing beef, as US consumers turned towards cheaper beef products; but any benefit had been offset by high US cow beef production.

The combination of increased US beef imports, high beef stocks over the New Year, lower prices and reduced buyer demand contributed to a 23-percent decline in Australian shipments to Korea for 2008-09, to 113,011 tonnes swt.

However, Australian beef exports to Southeast Asia in 2008-09 recorded a 28-percent year-on-year increase to a record 109,654 tonnes swt, with shipments up to all markets, except Singapore.

A record 38,089 tonnes swt of Australian beef was exported to Indonesia for the past twelve months, up 20 percent, followed by a 15-percent increase to Taiwan at 30,169 tonnes swt, and an 86 percent, 84 percent and 79-percent increases in shipments to the Philippines, China and Hong Kong, respectively.

The fallout from the global economic and financial crisis in 2008-09 saw Australian shipments to the Commonwealth of Independent States (CIS), namely Russia, decline quickly after October. While exports to the CIS for 2008-09 totalled 36,920 tonnes swt, down 17 percent year-on-year, nearly 30,000 tonnes was sent between July and October 2008.

Other regions to record increases for the past year included the Middle East, which reached 13,889 tonnes swt, up 80 percent. Export to the EU increased 17 percent to 10,802 tonnes swt, with a sharp jump in shipments to the UK and Denmark. Exports to Canada jumped six percent to 11,615 tonnes swt for 2008-09.