February 21, 2006

Australian live cattle exports fall 10 percent

Australian live cattle exports during 2005 declined 10 percent, to 572,799 head, continuing the downward trend three years in a row. The strong Australian dollar, historically high cattle prices, high oil prices and strong competition from frozen beef were all factors contributing to the decline in exports for the year.

Indonesia was again the largest market for Australian cattle, receiving 347,967 head for the year--accounting for 61 percent of the total trade. Exports to Malaysia fell by a quarter due to competition from frozen beef and high shipping costs.  Markets that have halved their shipments included China, Philippines, Jordan and Brunei.

Shipments to some markets increased during 2005, including Mexico, which doubled its diary cattle imports. Exports to Japan jumped by 40 percent on the previous year, to 25,269 head, while exports to Israel jumped 53 percent, to 32,027 head.

The value of the trade for 2005 totalled A$407 million (US$300 million) FOB--a 15 percent decline over the previous year.