February 8, 2010

Slow start to Australia's 2010 beef exports

Sluggish export demand and returns continue to restrain Australian beef and veal exports, with shipments in January declining by 11% on-year to 44,709 tonnes swt.

Exports to Australia's two largest markets, Japan and the US, experienced a sharp year-on-year decline.

January is traditionally the lowest month for Australia's beef and veal exports, given the disruption to processing and transport during the Christmas/New Year period. Adding to the 11% year-on-year decline for 2010 shipments was higher-than-average exports in 2009, assisted by an Australian dollar which averaged 68US¢, compared with 91US¢ in January 2010.

Exports to Japan for January declined 18% on-year to 17,896 tonnes swt, as economic conditions in the market remained weak, with deflation becoming an increasing concern. Similar to Japan, the high Australian dollar and weak consumer demand contributed to exports to the US in January declining 37% on-year to 9,950 tonnes swt, the lowest monthly total since January 1997.

Australian beef shipments to South Korea during January increased 38% on-year to 5,923 tonnes swt, while shipments to Indonesia exceeded 3,000 tonnes swt - more than double the January average for the past five years. 

Exports to Taiwan, China and the Philippines also increased year-on-year.

January was also a comparatively strong month for Australian beef exports to smaller markets, including to the Middle East at 1,130 tonnes swt, The Commonwealth of Independent States at 479 tonnes swt and Canada at 598 tonnes swt.