March 18, 2013

Russia's February chilled beef imports hit record high

In February, Russia's chilled beef imports reached their highest monthly total to 206 tonnes swt, well above the 2012 monthly average shipment of 92 tonnes swt.

The increase in chilled exports comes on the back of the Russian ban on US beef, which took effect on February 11. Australian chilled beef competes directly with US product in the market, with the gap left by the absence of US product providing increased opportunity for Australian chilled beef. However, following a slow second half of 2012 for beef shipments to Russia, overall Australian exports in February declined 53% on-year, to 1,363 tonnes swt.

Although chilled beef shipments increased significantly, February beef exports were mainly frozen grass fed product, dominated by shipments of manufacturing (40%) and chuck & blade (11%). While Australian exports to Russia have been sluggish throughout the first two months of the year, lower beef prices in Brazil and Argentinean helped their exports to Russia increase substantially over the same period.

In contrast, sheep meat exports in February rose 112% on-year, to 516 tonnes swt. Mutton exports accounted for 78% of total exports, comprising mainly frozen leg (54%), while lamb shipments were dominated by frozen shoulder (56%).