December 5, 2012

During November, Australia exported 27,834 tonnes of beef to Japan, down 17% on-year, as sluggish consumption and cautious buying by importers continued to be reflected in shipments.

The double-digit fall for the past three consecutive months reflects the tough market conditions, with the increased US supplies (on the back of the anticipation for the import protocol relaxation), economic uncertainties and plentiful stocks of the Japanese domestic products combining to constrain Australian exports.

Frozen beef shipments to Japan during the month declined 26% from last year to 15,234 tonnes swt, due to soft demand from Japanese end users, in addition to stronger competition for Australian products from other international markets, including China.

In contrast, chilled beef exports were only 2% lower than a year ago and the highest volume in 2012, at 12,601 tonnes swt. Traditionally higher meat demand in December, both in retail and food service, as well as firm prices for US beef are likely to have assisted the relatively steady intake of Australian chilled beef by Japanese buyers.