December 4, 2010

Australia's November beef exports hike 26%

Australian beef and veal exports surged in November, as a rise in beef output and strong year-end buying contributed to a 26% on-year shipment increase.

Fuelled by larger volumes to Japan, Korea, Russia and Indonesia, exports for the month reached 88,554 tonnes swt - the highest November total since 2006 (Department of Agriculture, Fisheries and Forestry).

Exports to Japan for November increased 30% on the same period last year, to 36,050 tonnes swt, taking total exports so far in 2010 to 327,000 tonnes swt - level with the same period in 2009. The surge in beef exports during November was reportedly largely due to Japanese buyers securing product in anticipation of reduced Australian supplies in December and January.

After lower shipments in September and October, Australian beef exports to Korea during November bounced back, reaching 12,080 tonnes swt - up 17% on the same period last year. Despite increased competition from the US in 2010, which was assisted by the very weak US dollar, Korea has been a very robust market for Australian beef during the past year. Australian exports for January to November were 9% above the same period last year, at 112,064 tonnes swt.

Russia again took a surprisingly large volume of Australian beef in November, given exports traditionally taper off late in the year as containers need to be customs cleared before 2011. Exports for the month reached 9,606 tonnes swt, taking volumes for 2010 to 48,032 tonnes swt - Australia's fourth largest beef export market. Shipments to the US were again very subdued, at only 9,265 tonnes swt, with the high Australian dollar, increased competition from other markets and high domestic cow beef supplies impacting imported beef demand. With exports so far in 2010 at only 176,192 tonnes swt, exports in 2010 are on track to be the lowest since 1996.

Demand from South East Asia and Taiwan for Australian beef was largely maintained throughout November, with exports to the Philippines and Malaysia up 12% and 21%, respectively, while exports to Taiwan jumped 25% on-year, to 3,130 tonnes swt. Shipments to Indonesia totalled 4,668 tonnes swt during November.

Exports for December are expected to be back considerably from November, as wet weather again disrupts cattle supplies and processors commence seasonal closures.