September 10, 2004

 

 

Australian Livestock Exports Fall In 2003/04

 

Australian live exports of cattle and sheep weakened in 2003/04, despite a steady increase in June cattle sales, industry marketing body Livecorp said.

 

Live cattle exports for the 2003/04 period fell by 33 per cent to 682,798 head, compared to the record 1.02 million head shipped in 2002/03, the marketer said.

 

Exports to the major South East Asian markets of Indonesia, Malaysia and the Philippines were all around 30 per cent lower than the previous year.

 

The suspension of trade with Saudi Arabia and the troubled Egyptian economy also impacted on the year, with no exports to Saudi Arabia (compared with 52,661 head in 2003/04) and over 100,000 less cattle sent to Egypt.

 

Shipments to Mexico, Vietnam and Brunei also fell, down 54 per cent, 76 per cent and 35 per cent respectively. Exports to China and Jordan increased significantly by 184 per cent and 325 per cent respectively.

 

Export values for the year were also reduced to $A460 million ($NZ495 million), 24 per cent lower than the record $A607 million ($NZ654 million) in 2002/03, Livecorp said.

 

Some improvement was seen late in the year as live cattle exports rose 18 per cent to 76,854 head in June from a year earlier, buoyed by the increased availability of cattle in northern Australia and strong demand from Indonesia and the Philippines.

 

The June figures were the highest monthly total since January 2003 when 77,583 head were exported and the Australian dollar was significantly lower, valued at average US58c, compared with US69c in June this year, Livecorp said.

 

June exports were valued at A$53 million, with exports for the first six months of 2004 valued at A$221 million, 11 per cent lower than the same period last year.

 

Calendar year to June exports were 23 per cent below the same period last year, with 308,846 head shipped to date.

 

Indonesia was again the largest market for cattle in June with 45,206 head, although shipments are expected to drop from July onwards due to high cattle prices.

 

"Looking ahead, exports are expected to slow as cattle availability tightens," Livecorp said.

 

Live sheep exports for the 2003/04 year also fell sharply, with 3,846,450 head shipped valued at $A268 million, a 34 per cent decrease on sheep numbers in the 2002/03 year.

 

"A number of key issues impacted the lacklustre shipment levels of live sheep during 2003/04. They include the higher Australian dollar, tight supplies and high prices of Australian sheep, competition from North African countries as well as the continued suspension of the trade with Saudi Arabia and post-Cormo regulations," Livecorp said.

 

The appreciation of the Australian dollar during the past year placed pressure on exporters as the Australian currency averaged US71c for 2003/04, a 22 per cent increase on the 2002/03 average of US58c.

 

Another negative influence on the market has been the sharp decline of the Australian sheep flock to its lowest level since 1947, due to drought and falling wool prices. This has seen tight supply push sheep prices to record levels, discouraging buyers.

 

June live sheep exports saw continued weakness with 190,206 head shipped at a value of A$12.5 million, 26 per cent lower than June 2003 levels, Livecorp said.

 

Live sheep exports to Kuwait fell 14 per cent to 88,246 head in June compared to a year earlier, while exports to Bahrain were the only improvement as the country doubled its shipments to 40,000 head, compared to June 2003.