February 8, 2011

 

Australian beef exports to climb in 2011 

 

 

Australia, the second-largest global beef exporter, will expand its beef exports by 3.3% on-year to 953,000 boneless tonnes in 2011, according to a yearly forecast by local analysts on Monday (Feb 7).

 

Russia, Indonesia and the Middle East will maintain the trend of recent years of an increased proportion of total exports going to markets other than Japan, US and South Korea, it said.

 

This year, 29% of total exports will be sent to markets other than the "big three" compared with 28% in 2010 and 22% in 2009.

 

Traditionally, these three markets accounted for 90% of Australian beef exports. The US has also traditionally been a major global supplier.

 

Reduced beef supplies from South America should assist in growing demand for Australian beef in Russia, the Middle East, China, Hong Kong and parts of Southeast Asia, it said.

 

Australia is the second-biggest global exporter of beef after Brazil. About two-thirds of domestic production is destined for export, with Queensland state accounting for almost half of all shipments to external markets.

 

The value of beef exports in the last fiscal ended June 30 fell 19% on year to AUD4.11 billion (US$4.16), but it was still the ninth-most valuable export from Australia.

 

Exports to Japan are expected to remain steady this year at 355,000 tonnes, with exports to the US to rise by 8% to 200,000 tonnes, while shipments to South Korea are to fall 3% to 120,000 tonnes.

 

A number of likely negatives for the export trade, including a strong Australian currency and increased competition in key North Asian markets from US beef that will cut Australia's market share, while economic concerns still hamper demand in Japan, the US and the EU.

 

Despite these, the overall fundamentals of the global beef market points to a period of rejuvenated demand and higher prices, which will help offset the influence of the Australian currency.

 

Accentuating this will be tight global beef supplies, while the potential for significant trade deals with major trading partners - notably Japan and South Korea - could boost an already positive outlook for the industry.

 

The combination of stronger demand and most importantly, global beef prices, should more than offset the blow from the higher currency, it said.