May 7, 2020

 

Australia's April beef exports slide

 

 

In the midst of COVID-19 economic disruptions, Australia's beef exports to all markets somewhat fell in April, although not as much as what some trade identities expected, reported Beef Central.

 

In fact much of the reduction in export tonnage can be explained by lower rates of slaughter brought on by herd rebuilding following summer rain across large parts of eastern Australia.

 

Total volume shipped during April, according to Department of Agriculture figures released yesterday, reached 92,476 tonnes, down about 2% on March figures, and back 6.3% on April last year.

 

Key features in April export trade included a sharp rise in exports to China, and a somewhat dramatic decline in exports to the US, which may include some COVID-19 impact.

 

In fact, reduced rates of processing during the month appears to largely account for the overall reduction in exports. The past four weeks of April has seen eastern states beef kills averaging 121,000 head - virtually the same as the four-week March period, but about 10,000 head per week below the same period last year, when cow slaughter was still happening at full throttle due to drought.

 

Worth noting, also, there were 19 working days in April, as opposed to 22 in March, which inevitably reduces total available meat for export or domestic consumption.

 

Japan remained Australia's single largest export market for the month of April, but only by the narrowest of margins.

 

Total exports to Japan last month reached 23,850 tonnes, down 10% on March, but 8% stronger than this time last year. Calendar year to date exports have reached 92,600 tonnes, about 5% better than the same four-month period last year.

 

China exports mounted a solid recovery last month, after slipping in March due to issues surrounding COVID-19. Total volume for April reached 23,788 tonnes—just short of volume to Japan—and up almost 30% on March figures. On-year trends were also higher, up 15% on April last year.

 

South Korea, which has been held up as a model for COVID-19 containment around the world, has been among Australia's most stable export markets so far in 2020.

 

Volumes shipped in April reached 12,704 tonnes, down just marginally from March, but 12% lower on-year. Exports to-date have reached 48,700 tonnes, a little below the 52,900 tonnes exported for the same period last year.

 

Export beef trade into secondary volume markets was mostly down during April.

 

Indonesia took 4,225 tonnes last month, a big 27% decline from March exports, which can be explained by the arrival of Ramadan festival period, for which stock built up during March. Year to date, Indonesia has accounted for 18,800 tonnes of Australian beef, virtually the same as last year.

 

The Middle East region accounted for 2,061 tonnes of Australian beef in April, down 15% on March, and 30% lower than this time last year, as cheap Brazilian exports continue to out-compete Australian product. Year to date volume is just short of 9000 tonnes, down 4% from last year.

 

Australian beef trade into the EU region continues to be very flat, with just 567 tonnes consigned in April, down another 8% on March, and 39% below April last year. For the first four months of the year, volume has reached 3,429 tonnes, down 23% from last year.

 

Trade to Singapore last month reached 2,643 tonnes, while Taiwan took just short of 2,000 tonnes.