August 10, 2009

Beef and veal shipments from Australia in July remained constant, recording just over 82,000 tonnes slaughterweight (swt) for the third consecutive month, with the highlight a record 4,600 tonnes swt to Indonesia. While exports for July were back 11 percent year-on-year, due to the Russia induced record July 2008 volume (92,585 tonnes swt), exports were 3 percent above the July average for the past five years.

This year has seen Indonesia firmly establish itself as Australia's fourth largest beef export market. The record 4,648 tonnes swt sent to the Southeast Asian nation in July was 72 percent above the same period last year, and exceeded the previous record set in February. Robust demand for Australian beef has underpinned a 38 percent increase in shipments for the first seven months of 2009, to 25,663 tonnes swt, which comes after a 23 percent increase for 2008.

Exports to Australia's largest beef market, Japan, meanwhile fell 10 percent in July, to 32,831 tonnes swt - 6 percent below the five-year average. Overall demand from Japan continues to be slow, given the fallout from the economic and financial crisis, with grainfed beef prices continuing to average 6 percent below last year. For the first seven months of 2009, Australian exports to Japan were back 2 percent, at 211,542 tonnes swt.

July exports to the US was up 16 percent on-year at 20,260 tonnes swt but was still 18 percent below the five-year average. After a rapid start to 2009, Australian volumes to the US have slowed in recent months, as US demand waned and domestic production increased on the back of higher cow slaughter. Given the very low shipments during 2008, Australian exports were up 43 percent for the first seven months of 2009, at 166,892 tonnes swt, but were still the second lowest for the past 10 years.

For the second consecutive month, Australian beef exports to Korea were up year-on-year, following 11-months of lower shipments. Exports for the month totalled 10,530 tonnes swt - 15 percent above the five-year average.

Other markets to register increased shipments for the month included Canada, Mexico, Hong Kong, China and Taiwan, while volumes declined to Singapore, the Philippines, the EU and Russia.