December 7, 2009

Australian beef exports drop 17 percent in November

The combination of a powerful Australian dollar and a sharp reduction in beef production since October has forced down Australia's beef exports by 17 percent year-on-year in November.

Total shipments for November totalled 70,360 tonnes swt, the lowest November total since 1997, according to the Department of Agriculture, Forestry and Fisheries.

Volumes to Japan during November increased three percent on-year to 27,720 tonnes swt, but were down 22 percent from the five-year average of 35,479 tonnes swt.

South Korea was a steady market for Australian beef in November, taking over 10,000 tonnes for the sixth consecutive months. However, November's volume was down 25 percent year-on-year.

Indonesia bought 5,117 tonnes during November, slightly lower than the record 5,347 tonnes in October, and 79-percent higher than November 2008.

Beef exports to the US for November fell by 55 percent on-year to 13,115 tonnes swt, the lowest level since January 2008. US demand for Australian manufacturing beef has been subdued in recent months, due to higher domestic supplies boosted by increased dairy cattle slaughter, and the stronger Australian dollar impacting importer demand.
 

Total shipments for the first 11 months of 2009 are down three percent on-year to 850,919 tonnes swt. Exports in December are expected to be well below last year's levels, as beef production is projected to tighten over the remaining weeks of 2009.