August 7, 2014

Australia's beef exports hit record high in July

For the first seven months of 2014, Australia exported 706,225 tonnes swt of beef and veal products, with July's record volume at 121,525 tonnes swt - up 14% on-year.

The United States remains the dominant market all year, with the record 90CL prices combined with lower production in the United States. During July, 36,799 tonnes swt was exported to the United States, more than double year-on-year and the highest monthly volume in almost a decade. Similarly, due to the intrinsic nature of the North American beef industry, exports to Canada were also double year-on-year, at 3471 tonnes swt.

While shipments to Japan were higher than the previous month, and indicative meat prices were relatively high, the July volume was somewhat subdued at 26,284 tonnes swt, back 17% from the corresponding month last year.

Korea continued to display strong interest for Australian beef, with the 13,157 tonnes swt up 3% on-year and taking the volume for the year-to-date to 85,946 tonnes swt, up 16% on the same period last year.

July export volume to China was relatively high, at 10,949 tonnes swt, which contributed to the volume for the first seven months being 2% higher, at 78,978 tonnes swt.

Indonesia continued its strong buying activity, with 5,920 tonnes swt purchased in July, up 75% on-year, as did the Middle East, where shipments reached 6,503 tonnes swt for the month. Volumes to Australia's highest per unit value region, the EU, were 30% higher at 2,650 tonnes swt, taking the year-to-date to 14,723 tonnes swt.

MLA says cattle slaughter and exports are likely to remain high for the coming two months, before tapering off in the final quarter – provided there is some seasonal relief in the north.