August 3, 2012

 

 

Despite continued difficult trading conditions, Australia's beef exports edged higher in July with shipments increasing to both Japan and South Korea.

 

Australian beef exports rose 1.1% compared with June and 3.9% compared with last July, to 82,514 boneless tonnes, taking shipments in the first seven months of the year to 532,168 tonnes, up 0.4% from the same period last year, according to monthly data issued by the Department of Agriculture.

 

"The combination of the high Australian dollar, increased competition in North Asia and sluggish consumer demand in many markets continues to impact returns for most Australian beef products," marketing concern Meat & Livestock Australia Ltd.(MLA) said in a statement.

 

About two-thirds of domestic production is exported, with an annual value of around AUD4.5 billion (US$4.7 billion), with shipping volumes driven by output levels, usually making Australia one of the top three suppliers to the global trade.

 

MLA highlighted some of Australia's smaller markets, including exports to China of 1,065 tonnes, nearly triple on year; shipments to Singapore nearly doubled to 1,469 tonnes; and exports increased to Malaysia, the Philippines and Taiwan as well.

 

Exports to the country's fourth- and fifth-largest beef markets in 2011--Russia and Indonesia--were subdued with Russia taking 2,422 tonnes, down 40% on year, while July shipments to Indonesia halved on year to 3,174 tonnes, MLA said.

 

Exports to Japan of 31,028 tonnes rose 2.4% compared with June and 33% compared with last July, taking exports in the first seven months of 2012 to 181,896 tonnes, down 4.5% on year.

 

MLA said exports to Japan in July notched the second-highest monthly total over the past 12 months, with demand there continuing for lower-priced products.

 

Exports to South Korea of 9,553 tonnes rose 7.5% on month but were down 17% on year, with shipments in the first seven months of 2012 at 59,311 tonnes--down by 30% on year.

 

Growth in shipments to the US appears to have firmed, with exports of 17,105 tonnes easing 1.4% on month but rising 8.7% on year. January-July exports to the US of 135,224 tonnes rose 40% on year.

 

Illustrating the sustained recovery of US demand, monthly Australian beef exports have been higher on-year for the past 10 consecutive months, MLA said.