February 13, 2024

 

Australian red meat exports surge on low prices, strong demand

Australia experienced a significant surge in red meat exports last year, driven by a sharp decline in livestock prices, making its products more competitive globally, particularly amid falling beef production in the US, Investing.com reported.

 

Trade data revealed a steady acceleration in shipments throughout the year, resulting in record-high exports of sheep meat and the highest beef exports since 2019.

 

As one of the leading red meat exporters globally, Australia is poised for even larger export volumes in 2024, fuelled by diminished US beef output and robust demand from China, according to Matt Dalgleish, an expert at agricultural consultancy Episode 3.

 

The plunge in Australian cattle and sheep prices to multi-year lows stemmed from dry weather conditions, prompting farmers to offload livestock amid concerns over insufficient grazing resources, leading to elevated slaughtering rates.

 

In contrast, the US experienced a contraction in its cattle herd due to drought, resulting in the smallest herd size since 1951 and a subsequent surge in beef prices.

 

Last year, Australia exported 607,878 tonnes of sheep and goat meat, marking a notable increase from 2022's figures, along with 1.18 million tonnes of fresh and frozen beef, a substantial rise from the previous year.

 

While sheep meat exports totalled US$3.1 billion, slightly lower than 2022's record-high of US$3.4 billion, beef exports surged to a record US$7.6 billion.

 

China emerged as a key destination for Australian sheep meat, importing a record 204,446 tonnes in 2023. Beef exports also saw growth in shipments to China, South Korea, and the US, three major export markets for Australian beef.

 

Although recent rainfall has revitalized pastures and contributed to a partial recovery in livestock prices, Australian red meat remains competitive in the global market.

 

Additionally, there was a modest increase in live sheep and cattle exports from Australia last year, albeit still below historical peaks.

 

-      Investing.com