January 25, 2010

Limited Australian beef supply lifts export prices to Japan

Australian beef exports to Japan continue to be challenged by subdued buyer interest, with export prices improving due to limited availability of product.

In the Japanese wholesale market, chilled grassfed prices have been strengthening since late last year, as the trade was aware of the supply situation in Australia. Grassfed fullsets averaged JPY745 (US$8.27) per kg this week, up JPY35 (US$0.39) per kg or 5% higher than the same time in 2009.

In comparison, chilled shortfed fullsets were relatively stable, trading at around JPY830 (US$9.2) per kg this week, JPY15 (US$0.166) per kg or 2% lower than last year.

A trade source also noted an improved interest in imported frozen beef this week.