February 25, 2004

Australian Beef, Lamb Prices Sky High in Asia

The ban on US beef has led to a substantial increase in demand for Australian meat. Consequently, Australian beef and lamb prices have skyrocketed.

In Malaysia, sources indicate that Australian meat prices have increased by 40% in recent weeks.  Reportedly, importers are reluctant to purchase large volumes of Australian meat products for fear that their customers will not buy such quantities.

Rather, importers are apparently only buying products for regular customers that have placed firm orders.  An example of the high prices is Australian tenderloin selling up to RM80/kg compared to RM55/kg for comparable NZ product. 

Reports also indicate that retailers are beginning to gather contact details of chicken exporters from countries unaffected by the bird flu, including Australia.  Currently Malaysia is free from of the bird flu.  At present, retail and foodservice sales of chicken have not been affected. 

In Taiwan, Australian beef sales are generally steady and there have been some increases in supermarket sales, but despite this, lower overall volumes of beef are being sold.  According to importers, import volumes of both Australian and NZ beef have increased.

Following the outbreak of bird flu in Taiwan, chicken sales in supermarkets reportedly dropped 30% while pork increased 20-40%.

In Indonesia, sources indicate the market is very quiet across the retail and foodservice sectors.  The price of Australian meat has increased in this market by 20-30%, while the market is also struggling with the bird flu outbreak.