January 9, 2009

Australia exported a new record high of 957,479 tonnes swt of beef and veal in 2008, up 2 percent on-year, according to the Department of Agriculture, Fisheries and Forestry (DAFF).

The increase in exports began in April due to growing supplies and high demand from Russia. A 30-40 percent decline in the Australian dollar over the second half of 2008 also helped reduced Australian beef prices, which increased its attractiveness to importing markets.

Australia's beef exports to Japan fell 4 percent on-year to 364,302 tonnes swt, due to low grain fed beef supply, higher Australian dollar in the first half of 2008, as well as increased competition from US beef.

Grain fed beef shipments to Japan declined 13 percent on-year to 149,183 tonnes swt, representing 41 percent of total shipments, the lowest since 2003.

Beef exports to the US in 2008 reached a new low since 1997, totalling 234,779 tonnes swt, down 23 percent on-year. Shipments to the US fell 34 percent on-year in the first three quarters of 2008, influenced by a strong Australian dollar and increased exports to Russia. However, the last quarter of 2008 saw the fall in the Australian dollar, which boosted beef exports to the US by 23 percent.

Australia exported 127,207 tonnes swt of beef to South Korea, down 15 percent on-year, due to increased competition from US beef in the second half of 2008. Exports to Taiwan also retreated 7 percent on-year to 27,098 tonnes swt.

A record of 72,035 tonnes swt of beef was shipped to Russia, which became Australia's fourth largest beef market.

A sharp decline in competition from Brazil was largely behind the surge in demand from Russia, Southeast Asia and the EU in 2008.