December 17, 2007

 

Australian beef shipments to Japan and South Korea to fall in 2007-08

 

 

Lower cattle production is expected to cause a drop in Australian beef exports, Meat and Livestock Australia (MLA) said.

 

Shipments to Japan and South Korea are forecast to be down 6 percent and 17 percent, respectively, while sluggish demand from the US will contribute to volumes dropping 4 percent.

 

Australian cattle slaughter for 2007-08 is forecast to be down 3 percent from the previous year, to 8.8 million head.

 

The decline in the number of heavy grainfed cattle entering the market is expected to ease beef production by 4-percent, with exports for the year falling 5 percent.

 

Domestic demand up, import down in Japanese market
 

The Japanese are eating less imported beef and more domestic ones.

 

Japan's consumption of import beef fell 6 percent to 38,796 tonnes while domestic beef consumption rose 8 percent to 31,805 tonnes

 

Imported beef account for 55 percent of overall consumption.

 

Overall beef consumption in October was stable compared with the same period last year, at 70,600 tonnes.

 

Beef stock was also up for imported beef.

 

Beef stocks as of the end of October were estimated at 67,271 tonnes of imports (up 16 percent from 2006), and 10,347 tonnes of domestic beef (up 3 percent).

 

 

Rising domestic beef consumption was attributed to a 7-percent rise in production which resulted in discounted prices for consumers.   

 

In November, retail sales of beef was up 1.4 percent from last year, according to Japan's Agriculture and Livestock Industries Corporation (ALIC).

 

Import volumes in November are expected to have declined on the previous year, but domestic supplies have remained firm. This suggests stocks as of the end of November have remained similar or slightly higher than October.

 

All quiet on the Korean front
 

All purchasing in South Korea has been completed for the remainder of 2007.

 

Following the high exports in October and November, export trading from Australia was quiet this week, and is likely to remain so until mid to late January.

 

Trading activities in the Korean wholesale market normally strengthen towards the end of the year, however, prices for Australian items were stable to lower this week.

 

The impending election has contributed to a period of weaker than usual consumer demand over the past few weeks, and many buyers are trying to decrease their purchases due to financial difficulties.

 

Australia : Cattle prices to rise 1 percent
 

Saleyard prices for cattle, lamb and mutton are forecast to average higher in 2007-08, as an expected improvement in seasonal conditions results in reduced turn-off.

 

The recent release of the Australian Bureau of Agriculture and Resources Economics' (ABARE) Australian commodities, forecast cattle prices edging 1 percent higher during 2007-08 while lamb prices go up 2 percent.