November 19, 2010

Australian beef and veal export values continue to lag

The value of Australian beef and veal exports in September attained AUD346 million (US$342 million) FOB, 4% more than last year, but less than the historical norm as it is 11% lower than the five-year average (ABS).

Export values have been lowered in 2010 due to less export volumes and higher Australian dollar, generally decreasing the prices received in Australian dollar terms for exported beef.

Beef and veal shipments as of now are worth AUD$3.36 billion (US$3.32 billion). This is 4% less than last year, with volumes rebounding to 3% over the same period of time.

The value of shipments has decreased significantly to the US this year. It is less than last year by 21%; reaching AUD$639 million (US$631.6) for January to September. This happens in spite of high in-market prices for grinding beef, with export volumes 24% lower over the same period to their lowest level since 1996.

Export values to Japan have also decreased by 10% in 2010, to AUD$1.27 billion (US$1.25 billion). This is because of weak consumer spending, more competition from US beef and lower Australian export volumes, with a 2% decrease in shipments for the year currently.

In contrast, the value of exports to Korea has progressed this year, increasing by 20% last year to AUD459 million (US$453.6 million). Year-to-date export values have also increased drastically to Russia (up 138% to US$128.4 million) and the Middle East (up 34% to US$91.9 million), as well as Indonesia (6% to US$129.4 million).