August 3, 2012

Australia's beef and veal exports increased in July, with a rise of 4% on-year, to 82,514 tonnes, despite challenging trading conditions.

The combination of the high AUD, increased competition in North Asia and sluggish consumer demand in many markets continues to impact returns for most Australian beef products.

Although compared to a very low total in July 2011 (23,275 tonnes), exports to Japan for July increased 33% on-year, to 31,028 tonnes - the second highest monthly total for the past 12 months. After a tough period during the first half of the year, the past months volume was in line with the five-year average for July, with the stronger demand for lower priced product continuing to assist frozen beef shipments - making up 60.5% of total exports for the month. For the first seven months of 2012, Australian beef exports to Japan reached 181,986 tonnes - 4.5% lower on-year.

Exports to the US for July totalled 17,036 tonnes, an increase of 8% on the corresponding period last year, but still 14% below the July average for the past five years. Illustrating the sustained recovery to the US, monthly Australian beef exports have been higher on-year for the past 10 consecutive months, with shipments for January to July 2012, up 40% on-year, at 135,156 tonnes.

Lower demand for imported beef in Korea continues to be reflected in Australian monthly shipments, with July volumes contracting 17% on-year, to 9,553 tonnes - the lowest July total since 2005.

One of the features for July was a monthly record volume to China, at 1,065 tonnes - 184% above the corresponding month in 2011 and surpassing the previous monthly record (1,056 tonnes) set in October 2011. On-year increases for July were also registered to Malaysia (up 9%), the Philippines (45%), Singapore (96%) and Taiwan (22%).

Exports to the fourth and fifth largest markets in 2011, Russia and Indonesia, continue to remain subdued in 2012. Exports to Russia in July totalled 2,422 tonnes, down 40% on-year, while shipments to Indonesia were back 49% over the same period, at 3,174 tonnes.

Exports to the EU continue to track just above 2011 levels, with exports for the seven months of 2012 up 7.5% on-year, at 7,897 tonnes.