May 13, 2004

Australia Cattle Exports Plunge 35% In 1St Quarter

Australian live cattle exports slumped about 35% to 97,000 beasts in the calendar first quarter from 150,000 in the fourth quarter and was down from 164,700 in the year-earlier quarter, the government's Bureau of Statistics reported Thursday.

"Demand in Southeast Asian markets continued to be affected by the strengthening Australian dollar," the bureau said in explaining the fall.

After strengthening by a third in 2003, the Australian dollar hit a 7-year high of US$0.8008 in February, but has fallen sharply since, and was quoted around 0200 GMT at US$0.6962, near 7-month lows.

The rise in the value of the Australian dollar rendered Australian cattle considerably more expensive in the currencies of major importers, including Indonesia, Malaysia and the Philippines.

Cattle exports last fiscal year ended June 30, 2003, totaled a record 976,600 beasts valued at A$569.3 million, making the live export trade an important component of the local beef industry, particularly in northern Australia.

The bureau also reported a slight decline in live sheep exports in the first quarter to 1.01 million valued at A$67.6 million from 1.05 million heads valued at A$73.7 million in the fourth quarter, both down from 1.63 million animals valued at A$115.3 million in the first quarter of last year.

"Demand has been affected by the strengthening Australian dollar, tight domestic sheep supplies and relatively high saleyard prices," the bureau said.

Live sheep exports last fiscal year of 5.84 million heads were valued at A$408.2 million compared with the previous year's exports of 6.44 million heads valued at A$391.7 million.

Most sheep exports are destined for Middle East countries.