September 4, 2008

Australia's beef exports in August slumped 12 percent on-year partly due to a transport strike in key exporting state Queensland.
 

Australia exported 69,526 tonnes of boneless beef in August, down 25 percent on-month. Total exports in the first eight months of 2008 reached 616,271 tonnes, down 0.8 percent on-year.

Japan imported 29,228 tonnes of Australia beef, down 3.6 percent on-year. Beef shipments to Japan in the first eight months of 2008 reached 245,121 tonnes, down 3.8 percent on-year, according to official figures.

Beef exports to the US declined 45 percent on-year to 13,432 tonnes in August, with total shipments from January to August reaching 130,334 tonnes, down 36 percent.

The transport strike in Queensland, which accounts for about half of Australia's beef output, has likely restricted movement of cattle from farms to slaughterhouses and to shipping ports.

The strike saw the number of cattle offered in Queensland sale yards plunge 47 percent on-week in the first week of August before falling by another 14 percent in the following week, according to Meat & Livestock Australia economist Tim McRae, who believed that the export slump was caused by the strike.

Bill Bray, president of Cattle Council of Australia, said the fall in exports could also reflect the seasonal closure of some southern slaughterhouses for maintenance in August.

However, there are positive influences on trade, including widespread weekend rainfall in eastern Australia and a weakening Australian dollar, the latter of which will increase returns for exports and competitiveness of Australian beef in overseas markets. The rain will rejuvenate pastures, which boosts demand from producers for cattle to fatten while encouraging producers to retain existing stock, restricting supply.

Meat & Livestock Australia forecast that Australian beef exports would increase 1 percent to 950,000 tonnes in August.