December 15, 2006

Australian beef fails to lure South-east Asian market
 

Average wholesale prices of Brazilian, Indian, Argentinean and Chinese frozen beef in South-east Asian markets have been well below the price of similar Australian beef over the calendar year 2006.

The price of frozen Brazilian beef in the Philippines remained 60-75 percent lower than the Australian beef throughout the year, including high value cuts such as striploin and rib eye. Brazil's competitive prices, combined with consistent supply, have resulted in higher exports to Philippine sector outpacing the demand for Australian or Indian beef.

Brazilian frozen beef striploin, rib eye and topside were 16-38 percent cheaper compared with their Australian equivalents in the Singapore wholesale market. However, frozen Indian beef, with prices, for striploin, rib eye and topside about 60-86 percent lower than Australian products dominated the Malaysian market.

Similarly, beef cuts from Argentina and China were sold at 13-44 percent and 20-50 percent cheaper than similar Australian cuts.

The increasing competitiveness from the above countries would continue to affect Australian beef exports to the region, next year, except in the high quality end of the market.