November 11, 2010

 

 

Russia has re-emerged as a big buyer of Australian beef as it battles drought.

 

But the high Australian dollar has battered beef exports to the US and to first-world economies worldwide. The Australian dollar hit parity again last week and early this week was trading at US$1.0152, putting pressure on exporters.

 

However, one analyst said there were positive signs in Russian, the Middle Eastern, South East Asian and Chinese markets at a time when mature markets were struggling.

 

"While our long-term customers in Japan and the US continue to face economic adversity and decreased consumer confidence, and competition increasing in Korea, emerging markets are experiencing growth,'' the analyst said.

 

Exports of Australian beef to the US are down by 25% so far this year and Japan has also contracted by 3%.

 

"Russia has imported more than 38,000 tonnes of Australian beef in the year to date - a significant proportion of the export volume normally sold to the US. This is not only due to currency but also reduced supplies from South America,'' the analyst said.

 

In the Middle East, Australian exports have grown from 4374 tonnes in 2007 to 15,753 tonnes last year.

 

The trend has continued, with exports so far this year to the Middle East increasing 59%, to more than 19,000 tonnes.

 

Within the region, the Gulf Co-operation Council - made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE - has undergone rapid economic growth due largely to high oil prices.

 

"In South East Asia and China, Australian beef exports to October 2010 are up by 4% on-year, following a 35% increase last year, with this export growth driven by demand in developing Asian markets such as Indonesia, China and the Philippines,'' the analyst added.