August 16, 2010

Canada's Q2 imported beef stock hits decade low

Canada's imported boneless beef inventories hit the lowest levels in over a decade at 3,055 tonnes during the second quarter of 2010, down 24% on-year, largely due to reduced volumes of beef from Australia and New Zealand.

There has also been a decline in Uruguayan shipments, with much of their import quota for 2010 already filled. It is expected that Uruguay will now largely remain absent from the Canadian market until quota allocations resume in 2011.

Prior to the BSE outbreak in Canada in 2003, imported beef inventories in Canadian cold storages were reported at well over 13,000 tonnes.

Given the tighter imported beef supplies, imported 90CL beef prices in Canada for the June quarter averaged 27% higher on-year, and 8% higher than the March quarter, at 172US¢/lb.

July saw prices for imported 90CL beef ease slightly from the second quarter, to average 162US¢/lb, but still 16% above year ago levels.