December 10, 2007

Australian beef exports drop in November

Australia's beef exports fell in November by 8 percent or 87,056 slaughterweight (swt), as demand from the US and Japan remained quiet and domestic beef production tightened figures from the Department of Agriculture, Fisheries and Forestry show.

Australian beef exports to Japan recorded their fourth consecutive monthly on-year decline, with November shipments back 12 percent on the same period last year, to 36,230 tonnes swt. The recent decline in exports has been blamed to reduced grainfed beef production over rising grain costs forcing a significant fall in the number of cattle on feed. Grainfed beef exports to Japan during November were back 17 percent on the same time last year, to 14,869 tonnes swt, while grassfed volumes dropped 9 percent, to 21,361 tonnes swt. Exports for the first eleven months of 2007 are back 5 percent year-on-year, to 350,722 tonnes swt.

The strong A$, restrained demand from buyers due to the E.coli outbreak and increased competition from Uruguay all contributed to lower beef shipments to the US during November. Australian exports during November fell 16 percent on-year, to 22,101 tonnes swt, with the months ahead expected to remain challenging, especially with the US border reopening to Canadian cattle over 30 months.

Beef exports to Korea increased slightly during November, edging 2 percent higher on the same period last year, to 16,792 tonnes swt. November also saw Indonesia receive increased volumes of Australian beef, with shipments jumping 78 percent, to 2,544 tonnes swt.

Australia's beef exports to Japan and South Korea in November

                                                           Tonnage (tonnes/ swt)                   Percent increase on-year

Exports to Japan (overall)                                36,230                                         -12 percent 
 
Exports to Japan (grainfed)                              14,869                                         -17 percent 
 
Exports to Japan (grassfed)                              21,361                                          -9 percent 
 
Exports to South Korea (overall)                       16,792                                           2 percent 
 
Exports Indonesia                                             2,544                                          78 percent 
 

Source: MLA